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rising global oil prices-- draining d economy

Updated on May 23, 2008

rising oil prices

There is an upraor in the world economy these days. The rising prices of oil have put a drain on many economies. With the price of fuel-- the most essential of all commodities-- increasing significantly, most of the less rich countries are finding it difficult to cope with the crisis.

This has set a spiral -- with prices of almost all commodities rising skyhigh, because of the added transportation cost. However, the governments of the developing economies are worried about the inflationary trend of oil in the global economy, making it difficult for them to sustain their economy.

With the ongoing modernisation of economies, the development spree is adding to the burden, with the need for fuel increasing day by day. Is this becoming a drain on the economies of many countries?

Certainly yes! even the biggest superpower is worried about it. With the price of a barrl of oil touching $130, it is expected to touch $150 in the coming days. I have no answer as to what should be done to control this ongoing trend. One option is to increase the usage of LPG instead of oil for household use. Is it a feasible option?


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    • profile image

      Erin Hill 9 years ago

      I know that most people will say I'm naive or that I don't care about the wildlife...but would drilling for the oil in Alaska and Canada that everyone is harping about--just for a time until other sources of energy are more efficient. (We'll have to do that anyway with global warming and all)--be such a bad idea? Some economist guy (real intelligent phrasing...I know.) said that if the U.S., being one of the biggest buyers of foreign oil, even began proceedings to do so the other nations would have to lower their prices in some way. And what about all of these chain letter "gas war" things I've been getting? Would it be worth it to stop buying all gas from either foreign oil buying companies, or the two biggest (I've heard both ideas)? Would it even make a difference, or do we just sit in silence and hope that our next president isn't such a knucklehead?

    • solarshingles profile image

      solarshingles 9 years ago from london

      There was an oil crisis in seventies (1970>) due to the high prices of oil, which introduced SAVING and higher EFFICIENCY as the best possible option.

      The latest oil crisis in not only going to encourage saving, but also the switch to renewable energy sources, such as solar power, wind, geothermal and hydrogen + saving and even higher efficiency to the higher extent.

      The cause for oil crisis in seventies was OPEC lobby cartel.

      The cause for the record oil prices now is George W. Bush's precisely planned and executed policy of attacking the largest world's oil fields and to be hostile to oil producers (Nigeria, Iran, Venezuela, etc.) in the time, when some new, large economies of developing countries are booming (China, India, Brazil, etc.)

      (This video explains a lot: )