Most of the gulf countries which have huge natural reserves of oil have benefitted tremendously in the past from the hugely profitable oil industry. They earned a handsome margin of profit as the world demand of oil barrels is immensely whopping.
Right at the moment, the expert market analyzers have opined that in the year 2012, the oil industry is likely to face a major setback as both the demand and the price of oil barrels is going to take a downward dip. They have come to this conclusion weighing a lot of factors, market trends as well as different fluctuating parameters too. If it does happen, the gulf countries might need to worry as oil export is a major source of economy for many among them. However, may be they do not need to press the panic button immediately due to a couple of reasons.
Firstly, the cause for the slump is recession which is not likely to stay forever and after some point of time, the situation shall steady. In the meantime, the profit reaped in the previous years will come in handy and there are some other sources of economy so, it is not a massive crisis situation. Secondly, even if the demand goes down, oil has so many domestic uses and it finds its application in so many day to day activities that despite the slump in demand, all countries will need a minimum amount of oil import.
So, definitely, there is no need to be panicky however, things might not be as rosy as they were once. Once again, the catch is that whether or not this thesis turns out to be true, all countries are actually weathering the blows of recession. So, this would be an extra burden to bear. The silver lining among this entire debacle is that with the slump in demand, there would be the hope that somehow the oil; reserves shall last longer with reduced consumption.
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