There has been a lot of speculation regarding the fact whether or not the oil industry would succumb to recession in the year 2012. While most of the countries are battling their own problems with recession, the trouble with oil might just prove to be the last straw. Whether or not the thesis turns out to be true is a tale that shall only unfold with time, however, right now the situation is not extremely bright as the prospects do not look to be very promising as far as the oil industry is concerned.
The gulf countries and those having huge natural reserves of oil are in deep trouble as oil has always been their main source of income. They have extracted huge amount of profits by exporting the precious oil reserves present in their country. However, with the supposed slash of demand as well as price that is likely to hit the oil market, things might not be so rosy for these countries anymore.
Although, one cannot assert that there would be total end to oil exports since the fact that oil is needed for a lot of day to day jobs makes keeping a certain supply necessary. Yet, there is sure to be a slash in the energy consumption rates of different countries. America has topped the energy consumption chart for too long consistently.
The world was facing the danger of complete exhaustion of oil reserves in the near future. A lot of conventions have been called in support of cutting down energy consumption without much effect. With this drastic and unwanted slash in demand, one can hope for improvement in the indiscriminate oil consumption rate. Although, this is not the right strategy of cutting down oil consumption, yet it might prove to be a blessing in disguise.
However, for all this to happen first the thesis needs to turn true!!!
No comments:
Post a Comment