Large Oil Rig

What is the problem with oil

Oil has become a resource that is of growing importance and scarcity in the world. Many of the oil problems do not consist of the here and now, but instead on future prospectives and predicted shortages. As of right now, there is no problem, but the world, and the United States especially, is becoming more and more dependant on this non-renewable resource.

United States Problems

Who are the main oil producers?

While it is known worldwide that the middle east is the world's largest producer of oil, it might surprise some to learn that Russia is actually closing in as the world's largest oil and energy producer. In terms of actual oil reserves, the Middle East is home to about sixty-three percent of all oil reserves, and about a quarter of the world's oil can be found in Saudi Arabia. However, due to different economic restrictions and turmoil, it only produces a certain amount annually. (And with such a growing need for oil, it seems to be less and less every year.) In doing so, regulators such as OPEC (Organization of Petrolium Exporting Countries) try to keep oil prices from fluctuating too much and keep a hold on the world-wide market. While turmoil has been in the Middle East and a bad light has been shone upon them, especially after September 11, other countries have picked up the slack. Russia has been producing oil at a consistant rate for the past several years, reinforcing its name in the global sense of oil production. Russia used to be an oil-producing powerhouse during the years of the U.S.S.R. as it produced abut a fifth of the global production annually. However, since the fall, production has decreased until recently, and is poised to regain the strength that it once had as countries such as the US help it get back on its feet and overcome the barriers such as old technology or broken and worn pipelines. This in turn will diversify where the oil is being produced and will weaken the Middle Eastern strength on the world wide economy.

Graph representing the amount of oil found as we drill deeper into the land. It shows that even as echnology advances and we can go deeper, it does not necessarily mean that we will find more oil.

(Morse, 2002)

Solutions to the Problem

When studying the growing problem of oil dependence and use, it becomes apparant that there are many consequences that are directly related, such as air pollution and economic instability, as discussed throught this wiki. However, when studyin how oil is actually used and alternative ways to live our lives (such as walking or biking instead of driving a car) it there are definite trends that can not only reduce oil use-the main issue in many countries today, but also increase quality of life. Paul A.A. Higgins created some mathematical formulas to calculate exactly how much these alternative lifestyles could affect our daily lives. This of course is action that must be taken by the masses for anthing to actually happen, whereas action taken by governmental leaders and large industries to lower oil use and promovte alternative energy sources are what will make the biggest impact in the long run.

(Higgins, 2005)

How long has this issue been in existence?

The actual issue of oil use has always been on the horizon, and even now, the issue is still what will happen in the future, but it has been only recently that scientists have really looked at the environmental effect and the limited sources. Now it seems that oil is at the forfront of every countries thoughts and needs as it has become more needed and saught after than ever before as developing countries demand more and more oil and the supply continues to be depleated at a steeper curve.

Oil rig (Used with permission of DanRandom @ http://www.flickr.com/photos/danrandom/10526753/)

Oil and the Economy

The production of oil has been strongly correlated with the wealth of nations for a long time, and with the growing importance of oil, this correlation is becoming stronger and stronger. With this strong correlation between development and oil, it has made economists study this relationship closely to try and find different patterns and use them. Several key points have been brought out due to this studying. First is the correlation between oil producing countries and the authoritarian governments that rule them. Because oil brings in large profits and much of this money is spent towards funding for the military it makes it possible for unwanted regimes to stay in power and suppress the people of their nation. Because of this, the fact that this "liquid gold" as it is sometimes referred to, is so powerful makes it more tempting for rebels to try and overtake the oil and overthrow the regimes. Also, with a country that relys so much on a nonrenewable resource such as oil, it leaves it more open to the "boom and bust" cycles in which there could be times where little profit is made if the oil runs dry. Due to the trends, it seems that in a country that relys too much on its oil production seems to have a great amount of discourse within it as regimes are constantly trying to control the oil and therefore the country. (Smith, 2004)

The reason that oil is so valuable and can control these countries like it does is because of the value it holds to other countries around the world. Becuase oil is not evenly distributed around the world, many countries must import it to meet the standards for energy production needed. This puts the countries that provide the oil at an advantage as they can then play the market, increasing or decreasing supply as they feel. Because of this, countries that import oil try to develop other countries to spread out the playing field and eliminate monopolies.

(Jones, 1998)

How does oil affect the environment?

Along with the economic bind that oil use puts the world in, there are many worldwide environmental issues with oil consumtion and he methods by which it is used. The use of oil products pollutes the environment greatly. New technologies are being created to help reduce the use and pollution caused by oil, however because this is such an issue. The burning of oil creates a lot of CO₂ emissions, the leading greenhouse gas, which greatly contributes to global warming. Illustrating how important this point is, one can see that global warming was not a real issue until the last few decades, when the use and production of oil was beginning to pick up and accelerate as it is now. Currently global warming is increasing at an alarming rate as temperatures climb every year. The cutting down on oil use, while beneficial economically, also would greatly improve the environment.

Oil use is an international issue

Because oil is unevenly distributed throughout the world, as mentioned above, and countries must trade to obtain the needed energy, oil use is an international issue. Every country uses oil in some way for energy production, making it so that none of them can escape the problems of a depleted oil source as the world tries to find new ways to produce the needed energy to support its population.

Related Issues

Alternative Energy Sources

http://www.rferl.org/featuresarticle/2004/06/8a45b713-2c2e-4654-9579-e7cc4e081637.html

http://www.osti.gov/energycitations/product.biblio.jsp?osti_id=6112796

http://www.nirs.org/alternatives/factoid6.htm

http://www.gasandoil.com/goc/news/ntr42465.htm

Richard, Author James, & Morse, Edward L. (2002). The battle for energy dominance. Foreign Affairs.

Wahlin, W (2002). Liquid Gold. Japanese Inc. Magazine, 4-8. PEER

NL, (2004). Coalition Seeks to "re-energize America". Natural Life, 24.

Smith, R (2007, March, 21). Agriculture has developed energy savings. Southeast Farm Press, 34, 9, 1,8. Greene, David L., Jones, Donald W., & Leiby, Paul N Energy Policy. The outlook for oil dependence. 26, 55-69.

Higgins, Paul A.T. (2005).Exercise-based transportation reduces oil dependence, carbon emissions and obesity. Environmental Conservation.

S, S (2007, February).Fueling Change. Natural Health. 37, 2, 1,2.

Smith, Benjamin (2004).Oil wealth and regime survival in the developing world, 1960-1999. American Journal of Political Science. 48, 232-246.

WEB SITE

Kraemer, T (2006, May). Addicted to Oil: Strategic Implications of American Oil Policy. Retrieved April 18, 2007, Web site: www.StrategicStudiesInstitute.army.mil

(2004, April). U.S oil dependence: driving U.S. military strategy. Retrieved April 9, 2007, from Third World Traveler Web site: http://www.thirdworldtraveler.com/Oil_watch-Dependence_military.html