The spiraling oil prices and the associated price rise have left the entire world economy fretting and fumbling. The US first quarter GDP at an estimated 1.8% (Lower than expected) depicts a dismal recovery. The tireless efforts of the Federal Reserve to pull US back from the 2007-2009 depression have proven futile. With the Syrian escalation and the Libyan War between Gaddafi and NATO Rebels, hopes on stabilizing crude oil prices, are further disappointed.
Nevertheless a recent campaign to remove subsidy at the American Petroleum has compelled the US President Obama to contest for eliminating the subsidies to effect oil price rise and decrease US’s dependency on foreign oil. Experts predict the current 2011 quarter might see oil barrel prices touching new heights at $90 per barrel. This might bring down the drooping economy on its knees. The 2007 to 2009 recession has yet not been overcome by the US and other nations; however the oil prices have been rising without even halting to catch up breath.
Thus what we require to curb this hue and cry over the impending oil prices is to explore new oil reserves and extract oil skillfully. What we expect out of oil mining and producing companies is a rational approach to develop oil extraction and improve on oil based products; to stop the cyclical process that increases the trade deficit and in turn increases the oil prices thus weakening the state of dollar currency in the world market thereby weakening the US economy.
US being a developed nation is run to a large extent on Oil and its other forms. The high prices of oil in world markets have thus left nations fretting and adopting various techniques to combat the crisis. While China decides to reduce exports, the US has strategies yet to be disclosed.
really informative post. Nice work keep it up
ReplyDelete