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economic impact of oil in the middle east
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American Oil Dependence
Since the oil embargo of 1977, there has been an increased awareness of our nation's energy security. As global population and energy consumption rise, the need for a stable energy supply has become a hot topic and a politically volatile issue. As our negative trade balance grows larger by the day, the United States finds itself in a rather precarious position. We are becoming more and more dependent on Middle East oil.
Indeed, the U.S. Department of Energy (DOE) predicts that domestic petroleum consumption will increase to 60 Btu by the year 2025. This statistic, in and of itself, is a matter of concern with respect to the greenhouse gas emissions that result from petroleum combustion. However, perhaps more disconcerting is the fact that U.S. oil production peaked in 1970 and has continued to fall since then (Campbell et. al., 1998). Therefore, the American public has turned to foreign oil, in particular Middle Eastern oil, to supplement its increase in demand. In an age where terrorism is at the forefront of people's minds, we still continue to import oil from the same nations that supposedly harbor so-called terrorist groups. The fact is that we are unwilling to responsibly face our energy future and instead choose to maintain a policy of increasing oil supply through importation.
One of the main problems with this strategy is that it is a short-term remedy. Studies conducted by M. King Hubbert in 1956 predicted the rise, peak, and subsequent decline of global oil production. He predicted that global oil production would rise until around 2002 and then start declining (Campbell et. al., 1998). If one takes the oil embargo of 1977 into account, effectively decreasing the rate...
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...to a fuel that, upon exhaustion, will mark our retreat from the global economic spotlight.
Works Cited:
Campbell, Colin J., Laherrere, Jean H. "The End Of Cheap Oil." Scientific American Mar. 1998: 78-83.
Flo, Gary. "Lecture on Fossil Fuel Consumption." 8 Sep. 2003
N.A. "Environmental Advocates Statistics In Hand." 2003: www.geocities.com/Rainforest/Canopy/2743
Assoc. Press. "U.S. Auto Sales Hit 2003 High In July." USA Today 1 Aug. 2003: www.usatoday.com/money/autos/2003-07-31-autosales_x.htm
Mills, Mark. "25 Years After OPEC's Embargo." Environmental News Jan. 1999: www.heartland.org
N.A. "www.skyaid.org." 2003: www.skyaid.org/skycar/us_auto_statistics.htm
Staff Writer. "Bureau of Land Management Maximizing Energy Development, Minimizing Environmental Protection." NRDC 7 Aug. 2003: www.nrdc.org/bushrecord/airenergy_publiclands.asp#1383
The United States has had several scares throughout its history in terms of oil, most turn out to be over exaggerations of a small event. However, these scares highlight a massive issue with the U.S. and that issue is the U.S.’s dependence on foreign oil. Why does it matter that our oil should come from over seas? In a healthy economy this probably wouldn’t be as relevant, but the U.S.’s economy is not exactly healthy at the moment. There are 4 things that I would like to address: what the problem is, how it affects us, what some solutions are, and what solutions I feel are best.
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Due to the relative ease of growing the potato it became the major staple in the diet of the people in Ireland. An Irish legend wrecked of the Irish coast in 1558, were carrying potatoes and some of them washed ashore (Stradley, 2004). The potato was cultivated by the Inca Indians from Peru in about 8,000 B.C. to 5,000 B.C. (Potatoes Goodness Unearthed, 2014). It is believed that the potato arrived in Northern Europe because of Spanish exploration (Mann, 2011). Forty percent of the Irish ate no solid food other than potatoes. In fact, according to Cecil Woodham-Smith, "That cooking any food other than a potato had become a lost art. Women hardly boiled anything but potatoes. The oven had become unknown after the introduction of the potato prior to the Great Starvation." Small land holders could grow potatoes easily ...
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America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%). The risk associated with these countries being the top oil producers is twofold. One, they are located half way around the world making it an expensive to transport the product logistically to a desired destination. And two, the U.S. has weak, if not contentious,...
Brooks, Leonard J. Business & Professional Ethics for Directors, Executives, & Accountants. Mason: Thompson South-Western, 2004. p227.
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In 1970 oil reserves became more scarce, leading to a decrease in production, while consumption continued to grow rapidly (Wright, R. T., & Boorse, D. F. 2011). In order to fill the gap between rising demand and falling supply of oil, the United States became more and more dependent on imported oil, primarily from Arab countries in the Middle East. (Wright, R. T., & Boorse, D. F. 2011). As the U.S and many other countries became highly industrialized nations, they became even more dependent on oil imports. With demand being higher than the actual amount of supply, prices kept rising reaching a peak of $140 a barrel in 2008. (Wright, R. T., & Boorse, D. F. 2011).
When an ethical dilemma arises within an organization, it is difficult to separate right and wrong with what is best for the majority. Sometimes the answer is not a simple “yes” or “no.” In 2002, Enron Corporation shows us just that. By 2002, the sixth-largest corporation in America filed for Chapter 11 bankruptcy. The case of the Enron scandal is one of the best examples of corporate greed and fraud in America.
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