Beyond the obvious reasons for its importance, one factor should be mentioned. First, oil will be the only possible primary fuel for some time to come that will be able to satisfy the soaring demand of Iraq to pay their debts
Oil dependency and addiction are a curse for any country. In addition, the stone age did not end, because there were no more stones.
I prefer that Iraq not only depend on oil, but rather the development of industry in it and be from the producing countries and not the oil-rich countries
Oil dependency and addiction are a curse for any country. In addition, the stone age did not end, because there were no more stones.
Oil dependency is a blessing and a course at the same time.
I am working at the moment on the case of Venezuela: years ago very rich, high-developed country (within Latin American region) today in the crisis and without any hope for a good solution in the near future. And let's remember that Venezuela has the largest confirmed oil reserves and the second-largest natural gas reserves in the world. In addition Venezuela has non-conventional oil deposits (extra-heavy crude oil, bitumen and tar sands) approximately equal to the world's reserves of conventional oil.
The economy of Venezuela is largely based on the petroleum sector. Revenue from petroleum exports accounts for more than 50% of the country's GDP and roughly 95% of total exports. Venezuela is the sixth largest member of OPEC by oil production. From the 1950s to the early 1980s, the Venezuelan economy experienced a steady growth, with the nation enjoying the highest standard of living in Latin America. During the collapse of oil prices, the economy contracted the monetary sign, commenced a progressive devaluation, and inflation skyrocketed to reach peaks of 1000% or more.
The explanation is of course complex and the case is complicated but in many ways this is the sign of "the Dutch desease": other sector, esp. agriculture almost do not exist...
Dear RG colleagues,
I want to alert all the scientists of all such countries where searching of alternatives for next 10, 20, 30, 40 .... years are not performed continuously.
Human civilization is always changing it's direction, so it may be the case that some alternative energy source/s may create some condition where the petroleum may lose it's total importance. It may happen within next 10 years also!
So, every country should be prepared for various alternatives. It is the duty of the scientists to search out the alternatives for their country.
I can bring one example here. Bangladesh earned a lot of money through export of jute and jute products. But after discovery of plastic based or other synthetic fibres, that country no longer get business from jute.
It is not any hypothetical concept, it is a practical discussion.
Thanks.
the government, policy makers and researcher direly needs to evaluate their energy policy and focus on alternative and cheap resources. e.g hydro, solar, wind , biomass and increase the share of renewable in energy mix.
Dear Mohannad Husain Al-Sherrawi
Many thanks for your participation
But, Sir, What about new generations ??
These countries must invest in these resources as oil is not renewable fuel
Oil producing countries should diversify their income and not depend only on oil sales.
Here is an interesting article about the necessity of diversification of economies in this aspect:
http://www.publicfinanceinternational.org/news/2017/10/imf-oil-dependent-countries-need-diversify-economies
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