Energy and global politics

In the wake of the unleashing of energy forces, the global balances of political power are undergoing tectonic shifts. The whopping spike in oil prices is going to make a striking transformation in the realms of politics as well as economies. The OPEC’s revenue has tripled from $200 billion in 2002 to abut $600 billion in 2006. There are enough straws in the wind to indicate that power is rushing to the oil-producing countries.
High oil prices give rise to clear and manifold risks. Firstly, as a sequel to the increase in the oil prices, the purchasing power of consumers who drive the world economy takes a nosedive. Secondly, high oil prices deal a severe below to the business activity and upset or disturb the balance of payments of non-oil-developing countries. Thirdly, the surge in oil prices touches off the forces of inflation. Fourthly, high oil prices enable oil-producing countries to disregard international regulations.

The issue of deep concern is that by 2030, the world’s population is expected to reach eight billion. As it grows, economies grow as well and such growth requires energy. Even with improvements in energy efficiency, the worldwide energy demand is expected to grow about 40 per cent by the year 2030. As energy is so vital and there are many forecasts that oil prices will register further increase and touch new heights, the world needs to wake up to these formidable challenges. We need to take concrete measures to counter the challenges the energy industry faces and meet the basic energy needs of a rapidly growing world population. New and multi-dimensional institutions that can bring together the wide range of groups, nations, corporations and individuals are required to tackle the energy problems.

The News