Wednesday, February 03, 2016

An Oil Autumn

Oil has been shedding its price for quite a while now. Oil producers are having a tough time while the consumers are making merry.

However, falling prices should be a great cause of concern for the consumer nations. It was not the British or the Americans who forced defeat on Germany during WW II. In fact, it was the Russian retreat which trapped and left Nazi forces to languish in harsh Russian winter and ultimately to defeat.

A gross consumer nation like India has unlimited potential for growth of oil demand and we are already witnessing its demand for oil products multiplying dangerously over recent past. The current retreat in oil prices is certainly poised to make the new government, which is hard pressed to fuel development and the economy of the country, complacent to the over-usage of petro-products and its perils. It is no brainer, sun will shine over the oil industry once again and then the consumers will be caught with their pants down to the oil blitzkrieg.

As the prudence calls, each and every penny saved out of blood of oil industry, must be fed NOT into building roads or cars or other oil resuscitating industries BUT into alternate renewable energy sector. The government must come up with a road map for the entire national development basis conservation and recycling of the resources. Blindly accepting and following the western road maps will be a one way ticket to doom for the entire developing masses.


At 5:40 AM, Blogger said...

There's way more to this price decrease than problems with oil producers. First, there is the removal of the Iran embargo- which nation is desperate for cash- so it is pumping and shipping oil. Second, the addition of fracked oil to the pool has greatly augmented the available deliveries. Finally, the Saudis are desperate to terminate the frackers- and its enemy Iran- so it is refusing to adjust its deliveries or pricing! They are hoping to bankrupt their competitors.
The good news - in my opinion- is that these actions are doing far MORE damage to the rancid regimes of Putin (Russia) and Venezuela.

At 6:46 AM, Blogger sudkjain said...

Your observations are spot on, sir. However, my contention here is to show that India would also be a loser in the long run because of low oil prices. Not only does it increase our dependence on imported oil but also the top cities in India are facing acute problem of pollution and traffic jams.


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