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Short-term effects of the oil spike on different economies

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Short-term effects of the oil spike on different economies

Unread postby Russian_Cowboy » Sun 14 Aug 2005, 16:05:31

Assuming that the oil prices are increasing at an average rate of $30/year (this is how fast they have been growing since Jan. 2005) I evaluated the pinch the average folks will feel in different countries (excluding most African countries). The numbers below are rough estimates of the percentage that will be shaved off the salaries of average folks every year in the next couple of years. The formula I used is as follows:

Effect=(annual oil consumption in barrels - (annual oil production in barrels) / 2) * $30 / (GDP in US$)

I divided the annual oil production by two because almost 1/2 of the extra oil revenues are pocketed by the top executives of oil companies, rich shareholders, and corrupt officials in the oil-producing countries. In addition, the cost of producing oil is growing very fast. I would group the countries hurt by the oil spike as follows according to the country scores:

1-2 - some economic slowdown
3-5 - significant economic slowdown, recession
6 and above - depression and an economic disaster, possibly causing a widespread civil unrest

Tajikistan 10
Kyrgyzstan 10
Dominican Republic 8
Singapore 8
Mongolia 8
Nicaragua 7
Georgia 6
Thailand 5
Ukraine 5
Belize 5
Suriname 5
Macedonia 5
Bulgaria 4
Honduras 4
Philippines 4
Uzbekistan 4
Paraguay 4
Uruguay 4
Bolivia 4
South Korea 4
Panama 4
Haiti 3
India 3
China 3
Egypt 3
El Salvador 3
Pakistan 3
Taiwan 3
Bosnia 3
Chile 3
Serbia & Montenegro 3
Croatia 3
Indonesia 2
Armenia 2
Lithuania 2
Israel 2
Turkey 2
Romania 2
Costa Rica 2
South Africa 2
Greece 2
Portugal 2
China Hong Kong SAR 2
Poland 2
Czech Republic 2
Slovakia 2
Guatemala 2
Brazil 2
Slovenia 2
Netherlands 2
Belgium & Luxembourg 2
Spain 2
Peru 2
Iceland 2
Bangladesh 2
USA 2
New Zealand 1
Finland 1
Hungary 1
Japan 1
Italy 1
Republic of Ireland 1
France 1
Germany 1
Austria 1
Australia 1
Sweden 1
Switzerland 1
Canada 1
Malaysia 0
United Kingdom 0
Vietnam 0
Argentina 0
Mexico 0
Denmark 0
Turkmenistan -1
Colombia -1
Syria -1
Iran -3
Russian Federation -4
Ecuador -5
Norway -6
Azerbaijan -9
Venezuela -9
Algeria -9
Kazakhstan -12
Yemen -12
Saudi Arabia -16
United Arab Emirates -16
Oman -17
Qatar -22
Kuwait -25

If only 1/3 of the oil revenues are pocketed by the top executives, corrupt officials and lost due to the increase in the cost of oil production, the scores will be as follows:

Tajikistan 10
Kyrgyzstan 10
Dominican Republic 8
Singapore 8
Mongolia 7
Nicaragua 7
Georgia 6
Thailand 5
Ukraine 5
Belize 5
Macedonia 5
Bulgaria 4
Honduras 4
Philippines 4
Paraguay 4
Uruguay 4
South Korea 4
Panama 4
Haiti 3
India 3
El Salvador 3
Pakistan 3
China 3
Bolivia 3
Taiwan 3
Bosnia 3
Suriname 3
Chile 3
Armenia 2
Serbia & Montenegro 2
Israel 2
Croatia 2
Lithuania 2
Turkey 2
Costa Rica 2
Greece 2
Portugal 2
China Hong Kong SAR 2
Poland 2
South Africa 2
Czech Republic 2
Romania 2
Slovakia 2
Slovenia 2
Belgium & Luxembourg 2
Netherlands 2
Guatemala 2
Spain 2
Indonesia 2
Iceland 2
Uzbekistan 2
Bangladesh 2
USA 1
Brazil 1
Peru 1
Egypt 1
New Zealand 1
Finland 1
Japan 1
Hungary 1
Italy 1
Republic of Ireland 1
France 1
Germany 1
Austria 1
Sweden 1
Australia 1
Switzerland 1
United Kingdom 0
Canada 0
Denmark 0
Argentina -1
Malaysia -1
Mexico -1
Vietnam -2
Colombia -2
Syria -5
Turkmenistan -7
Russian Federation -7
Ecuador -8
Iran -8
Norway -8
Algeria -14
Venezuela -14
Azerbaijan -16
Yemen -18
Kazakhstan -18
United Arab Emirates -23
Saudi Arabia -23
Oman -23
Qatar -31
Kuwait -35
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Re: Short-term effects of the oil spike on different economi

Unread postby pup55 » Sun 14 Aug 2005, 22:40:33

Cool.

Why isn't Japan higher on the list?

Seems like the bigger the gap between production and consumption, the bigger the nominal value ought to be.

Is your GDP value "per capita" or gross GDP for the whole country?
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Re: Short-term effects of the oil spike on different economi

Unread postby Russian_Cowboy » Mon 15 Aug 2005, 01:21:58

$this->bbcode_second_pass_quote('pup55', 'C')ool.

Why isn't Japan higher on the list?


Dont know. This is how the numbers came out.

$this->bbcode_second_pass_quote('pup55', 'S')eems like the bigger the gap between production and consumption, the bigger the nominal value ought to be.

Is your GDP value "per capita" or gross GDP for the whole country?


I used the absolute GDPs (not purchasing power) for the whole countries.
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Re: Short-term effects of the oil spike on different economi

Unread postby shakespear1 » Mon 15 Aug 2005, 06:11:47

Cowboy

If Ukraine is at 5 then Poland must also. If I am correct Ukarine has more coal than Poland so it has a source to fall back on in great quantities.

My 2 pennies of knowledge.
Men argue, nature acts !
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"...In the absence of the gold standard, there is no way to protect savings from confiscation through inflation."

Alan Greenspan
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Re: Short-term effects of the oil spike on different economi

Unread postby pup55 » Mon 15 Aug 2005, 10:17:37

$this->bbcode_second_pass_quote('', 'D')ont know. This is how the numbers came out


I understand now.

The countries that are really screwed are the nations that are already poor plus are big net importers of oil.

Japan has to import oil but is relatively rich. Same with Germany.

Indonesia fairly poor, but not a big importer of oil yet so OK.

Singapore is so high because despite being relatively well off, oil consumption is way way out of balance.

If you take this and adjust it for population density (number of people er square km) I bet you get a list of places that are vulnerable to refugees checking out and leaving the place.
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