Economic Role of Oil Suppliers to the World
Many countries have experienced a recession in recent times due to the global meltdown if of the superpower countries being unable to sustain themselves from over-dependence on petroleum products to run their economies and the ripple effect has been experienced vertically to other less developed countries that depend on these superpower countries on bilateral trade.
Over-reliance on domestic heating oil suppliers in distributing petroleum oil products over the years has brought over dependency to these countries that have allowed themselves into cartels that predetermine when and how much quantity of oil to produce. Acting like the Mafia gang, they will without consideration, determine what quantity and to which countries to distribute these precious commodity at the whim of their established political regimes. These regimes have had a brutal kind of ruling to their subjects where democracy has been thrown out of the window and dictatorship reign over their citizens. Political tolerance is unheard of, level of poverty high. These countries over time have had the amnesty international discover their human rights abuse against their citizens and workers in particular illegal immigrants working in their oil fields to be wanting.
Though these industry doesn’t account for a huge number of personnel being employed, the available slots which require specialization, are often given preference to their country citizens. With a strong lobby group, the industry does bully countries without the technicality experience but have the oil resource to enter into oil explorations deals that are tilted in favor of the explorer. Countries that generate production of oil hence becoming major players in the world dominance economy, will use their numerical strength as suppliers to apply the demand supplier strategy, in which the demand outstrips the supply strategy. To the developing and emerging markets in trade very often trade imbalance that arises during the exporting and importation will favor the supplier nations.
Many countries in the realization of these new phenomena have devised a new way of reducing their over-dependence to these cartel suppliers, by encouraging innovators in their country of origin to research new ways of producing energy so as to curtail their over-dependence on oil supplying nations. Energy renewal technology has been used to reduce the use of oil products in an effort to reduce global warming and cost to the economy. Solar exploration and non-petroleum using vehicles are just some of the effort seen in these techniques. Check out — Oil4Wales
For more information: https://en.wikipedia.org/wiki/Petroleum_industry