Unfortunately, some countries aren’t so lucky when it comes to their location and theresources that belong to them. Yemen is an important example because they lack oil and are verysecluded. This country is struggling and faces one of the lowest per capita GNI’s. They rely onsubsistence agriculture and have high unemployment rates as well as growing violence. All ofthis leads to relatively low standards of living. However, being oil poor does not mean that acountry’s standards of living are low. For example, Israel lacks large oil reserves, so it can’t bringin large sums of money into the country from the oil market. However, they have becomeextremely agriculturally productive and have been a leader in telecommunication products. Evenwithout oil, they are “one of the highest standards of living in the region”. For Israel, they have abright future since they do not depend on the oil market. However, the now prosperous oil richcountries with high standards of living might not have such high standards of living in the future.For example, Iran is a very densely populated country that had large amounts of oil at a point intime. However, they faced some economic turmoil by not trading, which has recently declinedtheir standard of living and caused the country to become very poor. Having oil doesn’tnecessarily mean that a country will have a higher standard of living than another country who isnot a participant in the oil market. …show more content…
The countries that are rich in oil now face the problems offluctuating prices as well as depleting their reserves, so maybe one day the oil poor countries’standards of living will surpass the oil dependent countries in Southwest Asia and North
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In terms of oil dependence, most of the general public believes that the world has enough oil to support us for the next hundred years; in truth we are rapidly depleting our petroleum sources due to the increasing population and demand. In fact, as was initially theorized by the Hubbert Peak Theory in 1950, Earth peaked in oil supplies in 1973 and the largest oil resources that have been discovered since then have been in Venezuela and Saudi Arabia. Here it must be
The country of Yemen is made up of several cultural and economic zones; The Tihama, the highlands in the west, the central mountains, the high plateau in the east and the Gulf of Aden coastal plains. The majority of the population is ethnically Arab and is divided between the Shi’a Muslims and Sunni Muslims with a small combination of Jewish, Hindus and Christians. In late 1949 and early 1950, approximately 50,000 Yemeni Jews left Yemen for Israel to be in the “Holy Land”. The birth rate of Yemen is high and almost half of their population is under the age of fifteen years old and the infant death rate is high, and migration is why the growth rate is limited. The language of the Yemenis is Arabic, but have many different dialects depending
Currently Saudi Arabia is one of the leading producers of oil in the world. However, it is losing its foothold on the market. Many countries, like North America, are increasing their oil production and are looking for ways to become less dependent on foreign oil. The increased competition has caused oil prices to decrease. By producing their own oil, countries not only will increase their revenues, but will also reduce their need to rely on foreign oil. By reducing their need foreign an oil a country does not have to worry that their oil supply will be cut off if they go to war.
The reason of the fall in oil prices are the constant change of demand. The need for the oil is actually stagnant. Crude oil is becoming a product of the past. Today, you can harvest energy from solar, wind, water, heat, and waves. According to The Economist, “The use of fossil fuels in the rich world is mostly falling. Emerging economies are not currently taking up the slack”.
Oil has often been referred to as any economy’s lifeblood. Although this is an overemphasis, oil has been the key, nonhuman resource of the economy throughout the largest part of the 20th century. In the book “The Prize: The Epic Quest for Oil, Money, And Power” by Daniel Yergin, the author illustrates the political, societal, economic, and geo-strategic importance of this product.
The two most important resources in this region are oil and water. The huge oil “deposits there and in the neighboring countries around the Persian Gulf (the United Arab Emirates, Kuwait, and Bahrain) established these countries as some of the richest in the world” (Document F). Nevertheless, the countries who do not have as much access to oil are weak economically. Oil is the biggest export in the Middle East, and in a way, the amount of oil a country has determines how wealthy that country will be. Another component of oil is that countries and ethnic groups are disputing for the control of prices of this economic resource. It has gone to the far extent of foreign countries attempting to control the oil price and also the use of weapons for this (Document E). In addition, it is impossible for each country to have equal access to water due to the unbalanced distribution of these essential resources. As a result of this, these countries are fighting for as much control of water sources they can get. Radically, there are many countries in the Middle East that are striving to obtain as many natural resources to strengthen their economy and lifestyle, and it seems most obvious that the scarcity of these resources is a significant problem in the region
According to Diamond, oil-states can be generally defined as countries whose economies are dominated by oil. Among “the twenty-three countries whose economies are most dominated by oil today, not a single one of them is a democracy. (Diamond 74)” When oil initially becomes a large source of revenue for countries, negative effects immediately occur. One major reason for this is that when an economy is dominated by
Several oil-countries have been facing economic and political turbulence as a result of the crash in oil prices, and there is disagreement among OPEC as how to handle the situation. (Krauss) While this is happening, America’s oil production continues to rise, as it inches closer to becoming an energy superpower in production and consumption; and countries that depend on their oil exports face recession.
Oil is and will be the dominant sector of economy in the world for some more decades. It is capable of taking entire countries out of their economic trouble as well as giving them power over other nations. Ecuador, a small country in the north west of South America, began to take part in oil industry about four and a half decades ago. The government started looking for more small petroleum reserves in 2004 without the expectation of finding much. This is why in 2007 it was an enormous surprise when they found one that could help take their “third world country” stereotype away. The only problem is it is located under the world’s most diverse spot on earth. Because of this the government decided to structure a project called Yasuni-ITT to save this precious place. In 2013 this project was canceled since no great support from other countries was shown. Yasuni-ITT was a precise approach to the solution of this dilemma because it prevented an ecological impact from occurring while also allowing Ecuador to advance economically. All of this could had been achieved if other nations would have shown interest in saving the environment.
This economic modernization in the Middle East, could only be a short term success which does not guarantee the successful and stable economic development of oil rich states and the region as a whole in the long term. The Middle East, despite its vast reserves of oil, is still considered a developing region due to the high reliance on oil revenues and rather weak production sector of the economy as well as due to some political factors such as lack of democracy, corruption, reluctance to the reforms and other issues. There are various reasons as to why the Middle East is still considered a developing region despite its oil wealth. Natural resource revenues have also been linked to slow economic growth rates, inequality, and poverty. One culprit may be "Dutch disease," which was discussed earlier. Other factors may include the volatility associated with commodity prices, which can have especially negative impacts on weak-state economies; and the underdevelopment of agricultural and manufacturing sectors during boom periods in resource-based economies. And even when oil abundance produces high growth, it often benefits only a few corrupt elites rather than translating into higher living standards for most of the population. Corruption is one of the economic deficiencies which can weaken economic growth and development; thus it is considered as an important impediment to economic growth and political stability, particularly in developing countries. The dependence on a
The oil-rich Bolivarian Republic of Venezuela, located on the northern coast of South America, was for many decades considered among the wealthiest nations in the entire continent. While having the largest proven oil reserves in the world has often proved a tremendous boon for Venezuela, the very black gold that has been the cause of its success has also proven to repeatedly be its kryptonite. Over half of the nation’s Gross Domestic Product stems from petroleum exports – which equates to approximately 95% of total exports. It is really not too hard to imagine what drastic consequences shifts in global oil prices could have on the economy.
The world is depended on oil and soon oil will become more valuable than gold and could lead to a worldwide war. Price for oil could soar to above two hundred fifty dollars per barrel. Oil and other fuel cell also cause green house gases which contribute to global warming. China is consuming two times more petroleum than 1996 and India is projected to consume three times the oil it currently does by 2050. Global house gas emission has increased by twenty percent from 2003 to 2006. Energy consumption has increased exponentially throughout the globe. The U.S. department of energy projects energy consumption will increase seventy percent from 2003 to 2030. The world has agreed to reduce emission by twenty five percent before 2020 and by over
World oil demand is increasing as emerging economies need more energy to increase their living standards. Estimates, shown below, are that by 2030, China and India as emerging markets will import over 70% to 90% of their fossil fuel needs (1) . Coupled to a continued high and growing demand for oil, makes this a robust market for the next 30 years.
Because private companies and nations have over-estimated oil reserves it is difficult to be exact but these estimates of world oil reserves are close and further research will reflect this. Also, rapid exploitation may have damaged many reserves' wells and will limit production. It may be that we (the world) have much less than is believed! The United States past its "peak oil" point back in the early 1970's ( for further research refer to Peak Oil Crisis Books) and now imports about two-thirds (2/3) of its oil. The U.S. economy and the current American way of life is supported by energy from other nations. Those nations that have not already past peak oil (maximum production) are very near it. In the future, production will decrease while at the same time demand increases. The spread between supply and demand will cause higher prices (for all products),
The extensive roles of energy in economic growth are well known. Kaiser, Mark .J (2007) posits that there is a solid relationship between national economy and energy development, as energy supply, demand and pricing have enormous influence on economic growth. With the fast pace of economic development over the past decades, many developing nations experienced a sharp annual growth in petroleum demand. However, those with large or potentially large petroleum deposits, very sufficient and financial resources for supply investments, especially for the development of oil and gas production and exploration.