Crude oil, drilled from the depths of the earth, is called black gold due to its value, demand and utility. The modern economy is so much dependent on oil that any imbalance in its production, distribution or sale will send shock-waves across the entire world. It drives the modern economy in its use as automobile fuel, lubricants, cooking gas, asphalt. Crude oil is refined and its various components are put to the uses mentioned above. Oil has been rightly described by many as the greatest natural resource ever as everything that we do is dependent on oil. Inspite of all this, there are several unknown faces to black gold. I would like to discuss some of the unknown facts about oil.
1)Oil finds its use chiefly as a source of energy since it is made of an energy rich class of compounds called hydrocarbons. The various products extracted from crude oil is burned to produce energy which powers modern life in this planet. This leads to production of various gases like oxides of carbon, sulphur and nitrogen. These are dangerous for a few reasons-
These are greenhouse gases that trap the sun's heat and retains it in the earth's atmosphere. This keeps the earth warm for life to flourish but too much of this can make things too hot for life. This aspect is widely known as the debate on climate change has much to do with the burning of oil.
2)Modern economy is complerely based on oil. Oil's biggest use is for transportation i.e, movement of people and goods from one point to another. Therefore, any fluctuation in the price of oil can affect the price of everything that we use as everything that we use had its raw materials made in one place, processing done at another place, manufacturing then packing and then distribution all of which involves trasportation. So, it can affect the livelihood of everyone and always hits the poor and the salaried class the hardest.
3)The presence of this natural resource has lead to flourishing economies that do not even have to levy taxes on its people since the revenue from oil is used for civic purposes. But the absence of oil has meant that a nation will have to spend a large amount of its foreign exchange reserves for importing petroleum which is a huge drain on its economy. Countries like Saudi Arabia, Kuwait etc levy no taxes on its people but India spends a lion's share of its foreign exchange on importing petroleum.
4)The oil crisis and shortage of the 70s had implications all over the world with queues that were miles long. The world is heading to a similar crisis with oil reaching $110 per bbl. This would affect the prices of all commodities and can lead to a lot of conflicts.
5)Due to all this, the ones who control the oil supplies control the fate of the world and many conflicts have been fought over oilfields. The Gulf War of the 1990s, USSRs attack on Afghanistan, policies and animosities between Latin American countries and America, American intrusions into middle east politics and the conflicts in Nigeria are all due to the selfish interests of nation to gain strategic control of the oil reserves. Oil has huge geopolitical implications and this does not bode well for the world.
All this shows that the entire world depends on oil in many ways and due to this, oil has gained so much power that all nations are under its influence. It influences their policies, decisions, economy and infact every aspect of life is influenced by petroleum. The question then is, can one material be allowed to possess so much power? With just one product having so much of power, those who possess it will determine the life of those who dont and those who dont have it, will try to possess this resource or control it by means of force, the way America has done to Saudi Arabia, Kuwait etc by establishing military bases and military presence in oil rich nations. The resources of nature are for all to be used, not for the control of lives of the people of the world. It should be used for development of the world and root out hunger and poverty not spread these by raising the price of essential goods above the reach of the poor.
The only way forward is to find a substitute for oil. Not just one substitute, but many of them that will replace oil gradually. We need to develop renewable resources and at the same time reduce our dependence on oil gradually to zero. We need to make efficient use of oil until alternative sources can replace it and also must reduce wastage. Also, we must adopt the alternative energy sources when they are introduced and phase out petroleum products from our world for a greener, free, pollution-free and conflict-free future.
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