The Speculative Black Gold

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Pakistan is a living example of the threat that persists because of depletion of ‘energy’ resources, which are rapidly decreasing around the world… but is that true? 

Will, for example – Oil… really finish?

I came across a survey done by British Petroleum, published by the name of Statistical Review of World Energy – 2007. It can be found the on the website of BP.

I did some calculations for oil and found out that the total production of Oil for the total world has increased by 16.78%, and the total consumption of oil by 17.11%…

The change I calculated was for the last ten years, (1996-2006) …

That surprised me because recently prices touched a $100 per barrel so I decided to find out the average oil price per barrel in 1996, and it was $26.77 (calculated in terms of today), and in 2006, oil prices averaged out to be $65.14, and for 2007, I came across the figure in an online financial journal, to be around $78…

So the prices gained more than 100% increase in ten years but the production and consumption have relatively grown together… it cant be because dollar is reducing its value, because we have taken into account the devaluation aspects… 

It reflects that in the last ten years, the oil industry has increased revenues by more than 100%, although the supply and demand have relatively matched each other… So speculation is the major reason that has led to an increase in price… And speculation regarding the geo-political situaiton of the Middle East has fueled the prices most…

One wonders who benefits from the rise in oil prices the most? And more importantly which countries have contributed to worsening the geo-political situation in the Middle East…?

The speculative price movement of the Black Gold has made some people very rich…

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