Monday, March 21, 2011

The Battle for Oil

Back in the 1940s, countries go into war to expand their land for their own people.

Mainly because the industrializing countries needed more land for their rising population.
Frowning their brows to the invaders, supporting nations of the oppressed countries form unions to fight against the tyranny of these invaders, whom invented reasons or "excuses" to take back the land that was originally theirs ( aka Germania ).

Fast forward 60 years, border fighting is no longer necessary with taller buildings and skyscrapers expanding vertically for housing people.

Wars are still fought but the excuse of "liberating the oppressed people" casts a long shadow on the hidden agenda of the most important raw material in the world today.

This natural existing mineral does not renew itself unlike other raw materials such as rubber.
And as the world consumption of this natural resource goes up, the available quantity that still exists in our world decreases. This natural existing resource "drives" our world and is responsible for the world's economy and productivity both directly and indirectly.

Yes, whether it's believed or not, "Oil" is the most sought after mineral now. Crude oil to be exact.

Countries that have such oil wells are carefully calculating how much is left. As each of these countries manage their export of oil, they also have to manage the rate of production, in order not to tip the scale of balance in overmining it and causing the price of crude oil to drop.

Unions to protect the benefits of oil producing nations are set up to ensure that prices are tightly maintained to ensure their own survival. It is known that such countries depend heavily on their oil exports and in the event they overproduce, they run the risk of losing their rankings in estimated remaining capacity and at the same time, decreasing their price of export of oil. Such a result might then cause the entire group of countries exporting oil to suffer as it'd force them to decrease their prices to remain competitive as well. [ See Game Theory Explanation ]

So the "Organization of the Petroleum Exporting Countries" aka OPEC serves to protect the interests of these oil producing nations against mutual competition and price wars and ensure mutual continuity of these nations for as long as possible.

And for natural existing oil wells, it is not going to be magically appearing in a non-OPEC country as they take millions of years to form. It is sad to know at this point that at the current rate of consumption, these wells that took millions of years to form, might just be dried up within a century or two.

So for the non-producing nations, they are at the mercy of OPEC prices. There is no 2 ways about it.
And due to the high costs of hoarding and storing the crude oil, one cannot simply stock up and wait indefinitely for a time to sell.

Luckily for some bigger countries, they have, too, their own unions! And they fight for liberation and modernization. They fight for the fact that everyone should be able to enjoy what they call a perfect world. A perfect world where everyone should be able to enjoy what they are enjoying. That basically summarizes to capitalization and human rights. And they deem anyone whom is unable to enjoy these 2 basic criteria to be the "oppressed".

So to liberate the "oppressed", they must overthrow the current administration of the tyrant leaders and allow the people to set up an elected government. An elected government that is also heavily funded by these big capitalist union countries. With prior good relations established for the newly set up government, it is somewhat guaranteed that it'd be easier to have trades between the capitalists and the newly liberated nations.

So what is the most desired commodity that your liberated country has that the capitalist country does not have?

Kuwait, Iraq, Egypt, Libya.... which oil producing country is next?

On a personal note, a person whom have lived in the desert all his life and had accustomed to the lifestyle that was lived by his ancestors and is able to continue his traditional customs handed down from his ancestors, will not find modernization to be a good thing. To force them down the way of capitalization and modernization might be considered oppression to them instead.

So, who are the tyrants and who are the oppressed?
21 March 2011

Opinions expressed here are entirely my personal thoughts.
If anyone is unhappy about this, 
they should publish their own blog,
 instead of ranting against someone else's thoughts
Published with Blogger-droid v1.6.7

Facebook Comments