Topic: Not just money but oil is most important in the World - page 2. (Read 964 times)

Oil has made many countries invade other countries, it cannot be denied because the need for oil is life for humans, almost all economic activities always require oil so it is natural that oil is the world's first need.

The limited part is not really a big problem because even though there is a limited supply of oil in the world, there are still enough out there that we could actually use it for decades, I mean we literally find more oil than we ever need every single year, there was a poind during last year’s pandemic moments where oil became negative price, yes that’s right you had to pay to own something and then pay to keep owning it instead of being able to sell it, you had to pay to sell it instead of getting paid.

These are all huge things in the oil world that proves that oil is not lacking in amount. However, the fact that it is killing the world for us is the thing we should be looking at, in 50 years world will not be a place where humans can survive this easily, our life will become a whole survival movie and even water will be a commodity we will need, we can survive this only if we move to renewable energy and pollute the world less.

The oil industry moves unthinkable amounts of money in the world which goes directly to the pockets of the establishment's members who rule their local societies on the backgrounds. That is the reason why electric cars and similar technologies are never fully implemented or opened to everyone for an affordable price.
Oil was indeed black gold many years, but it shouldn't remain like this anymore, because it's already possible to replace it, if there was legit interest from governments, businessmen and bureaucrats.

However, modern slavery is more profitable for them, as renewable sources of energy turn people less dependent, just like bitcoin and financial system correlation, so oil will last as black gold for a long time yet.

Well, that's exactly what I wanted to convey the idea. Although there is one more nuance - income diversification. If the same Norway forms its budget, and oil revenues are sensitive but do not have a critical weight. This means that a sharp change in the situation in this specific market will not drop the country's economy. And many countries such as Venezuela, the United Arab Emirates, the Russian Federation - have a critical share of oil revenues in the budget. Venezuela and the UAE, if I am not mistaken, filled the budget with oil revenues up to 70% +/-, the Russian Federation - from 30 to 40%. True, the UAE uses the head for its intended purpose - they think and are engaged in the diversification of the economy. And the two remaining countries use their heads just to eat and talk. Therefore, the UAE has laid a good foundation for the future, while Venezuela and the Russian Federation are smoothly (or not smoothly) watching the irreversible plunge of their economies into chaos.

^^^^ Norway is the perfect example for how the oil revenues need to be spent. They have more than a trillion USD in their rainy day funds (and the total population is less than 5 million). None of the other countries had that much success in dealing with the oil revenues. Regarding the UAE, I would say that they fared relatively well, but then wasteful projects such as the palm islands cost them a lot of money. And on the other side of the spectrum we have countries such as Nigeria and Angola, where almost 100% of the oil wealth was stolen. The situation in Russia is not that bad, but they have fared poorly. The government is yet to kick off its Soviet hangover, and is spending huge amounts of money every year on foreign grants and defense. Not a good idea when a large part of the population is living in poverty. And obviously oligarchs were able to steal a large part of the oil revenues.

You misunderstood the key point a little - I wanted to say that the income received from one and the same resource (oil, even with a different cost price) cannot always be used wisely! Whatever the cost of production in the Russian Federation, for the period from 2000 to 2018 the budget of the Russian Federation received several trillion dollars !!! (sources are readily available in the public domain) For that kind of money, the country could implement a huge number of projects within the country, raise the standard of living, and at least gasify the houses of its citizens! If you don't know - in the Russian Federation, being the largest gas supplier to the world market, more than 40% of the residential sector is not supplied with gas! They could also develop a technological niche, at least follow the path of purchasing technologies to create a foundation for further growth. But all they did was a pitiful parody of Silicon Valley - Skolkovo, where hundreds of billions of rubles were stolen. The output is nothing significant or deserving minimal attention. During this period, no new schools were built, but their number, on the contrary, decreased! At the beginning of 2000, there were schools in the Russian Federation: 46 thousand, now, in 2021, it has decreased to 24 thousand! Medicine fell into decay, and the reforms turned out to be a failure - the number of medical institutions and the quality of their work significantly decreased! The retirement age was increased, social funds were reduced.
 
But for example, Norway in recent years has created the National Welfare Fund of Norway. With reserves of over 1 trillion EURO! No, they didn’t set up palaces all over the country for their president, they didn’t surround themselves with a half-million, tame, national guard, to protect themselves from their own people!

And the United Arab Emirates, over the past decades, from desert settlements have turned into the most technogenic and developed megacities! At the same time, they invest this money both in the population and in the technologies of the future!

And in the state of Alaska, every citizen of the state receives an annual supplement from the sale of oil, and part of the funds goes to the development of the state's infrastructure ...

I'm sure this will make the main idea that I wanted to convey clearer?

Well, about prices, production costs.
I agree that Saudi Arabia has the lowest production cost. But in Iran and Iraq, it does not differ much - $ 9 and $ 10.5 per barrel - so what? Is it also wonderful to live there like in Saudi Arabia?
But in Norway it is generally $ 30 / bbl. and the most difficult conditions for offshore oil production! Can I tell you about the quality of life in Norway?
By the way, I disagree on the estimate of the cost of oil production in the Russian Federation - your data is greatly overstated! Official data in Russia - the weighted average cost of production is about $ 18 / bbl, or from $ 9 to $ 20, depending on production sites and infrastructure. This is according to the official statements of the Deputy Head of the Ministry of Energy of the Russian Federation, Pavel Sorokin, in 2020, which you can easily check in open sources ...

The list doesn't make any sense. The cost of production of crude oil in Saudi Arabia is only around $9 per barrel (that includes transporting the crude to refineries). For Russia it costs around $30 to produce one barrel of crude from the onshore deposits (including transport). For the arctic reserves, the production cost excluding transport is $120 per barrel. So it is not right to group all the deposits together. It may give an impression that Venezuela will benefit the most in future, but the cost of production there is manytimes what they have in Saudi Arabia.

Controversial statement. See the list of countries, TOP-10, by oil reserves:

1st place - Venezuela.
2nd place - Saudi Arabia.
3rd place - Canada.
4th place - Iran.
5th place - Iraq.
6th place - Kuwait.
7th place - United Arab Emirates (UAE).
8th place - Russia

And now:
1,4,5,8 - countries that DEPEND on oil prices, and the economy suffers huge losses when it decreases. Moreover, having oil but not having brains, they were unable to take advantage of high prices and invest the profits from the sale of oil in the development of technologies and other sectors of the economy for diversification.

2,3,6,7 - countries both have dependence and do not have dependence (we mean a strong dependence of the budget on oil prices). They were smart enough to reinvest in other industries, in the development of the country, in raising the standard of living of their citizens.

So everything is not so simple. Any resource can be useful in skillful hands, and harmful in the hands of a fool ...

Oil along with money is very important to improve the economy of the country oil is used in many daily activities of human beings fuel oil plays an important role in world politics countries that fuel the united states have doubled their oil production but now it is doing less. The main reason for this is that the united states has found large reserves of oil stored in shale wells.

Most countries who happens to have this natural resources feels powerful because yes oil is very important to any countries economic growth reason why countries with oil are doing everything possible to safeguard it, those with great foresight are utilising the opportunity to develop and increase their position in the world, reason why some powerful countries are oppressing small and less powerful countries to take over their crude oil, although slowly alternatives with the production of electric vehicles and such devices that need the use of oil are comingup, perhaps in the future when this electric vehicles are more common oil will not be so important as it use to be and only countries with such ability will have the upper hand.

You may be right about them not being as "rare" as the name might suggest.  I did some reading after your comment and it turns out the US has several significant deposits, but there's not currently a way to get them out of the ground in an ecologically acceptable way.  So while the US is waiting for a technological breakthrough to access them in a better way, we're reliant on China where we import 80% of the REE we need.  That's an obvious economic and national security threat, one which China has already threatened to use as leverage in trade negotiations.

We can say that from daugava I, using something, few care about the consequences that remain.

Regarding rare earth elements (REE), I have heard that they are somewhat abundant in the planet. The main issue is with processing of the mineral deposits, which produces large volumes of toxic byproducts. Right now, China is a leader, because their environmental regulations are not very strong and private players can get away with the toxins they produce. China accounts for 58% of the global REE production, and this in turn has made them a global leader in the production of electronic appliances. Myanmar is another country, which is increasing its production right now. US has enough deposits, but getting the clearance from the government to extract them is quite difficult.

Oil has been a magnet since world war 1, when the industrial revolution and demand for oil continued to increase, strong countries wanted to control the oil supply, now there is no war and of course with this fact oil producing countries get a lot of benefits from the need for oil.

Crude oil is very important today, because most of the machines used by humans still use fuel oil. Therefore, the middle eastern country which does
have quite a lot of oil reserves, is now indeed a rich country. But the limited amount of crude oil, makes people think about looking for other
alternatives. Moreover, the use of oil as a fuel can damage the environment, so slowly several large countries began to switch to using electricity.
So in the future the possibility of oil is no longer important, because everything will use electricity. Therefore, a country that has a lot of oil reserves,
if not put to good use of the money from the sale of crude oil, in the future will not be a rich country anymore.

To do this, it is necessary to become members of such associations as NATO, this will moderate the ardor of some aggressor countries. For example, the Russian Federation can attack Georgia or Ukraine - the countries are guaranteed to be weaker, but will never attack Poland or Lithuania - they are part of a powerful military-political bloc, and the response for the aggressor will be fatal.
By the way, it is the Russian Federation today that is probably the last country that will try to hold on to oil and gas, and by all legal and illegal methods will try to create demand and increase the price - its economy is almost entirely resource-based and depends on the sale of hydrocarbons. Therefore, with the next turmoil in the oil and gas market, remember the question "CUI PRODEST; CUI BONO"

Its true that oil mostly run the world since most of machinery and autoindustry still using oil. Dubai grab the opportunity of being the oil capital in the world that drastically change their country but they also know oil is not permanent time comes it all exhausted, i think if most country change their view on how to care planet earth then oil will not as much important. By changing to renewable energy and converting auto industry to use electric then we have a brighter future on this planet.

That's right, the most needed resource today is crude oil. dubai is one of the largest oil producers today and it is very influential for the people's economy. we can see that from the large projects that are often built in dubai and the vehicles that are mostly used by the people there. Whoever controls oil will rule the world.

Yeah I agree. Oil runs the world and without these, we are probably not here. It propels us to the future thats why these giants country are so into it. China's even claiming waters beyond their territory just to have those precious oil. This resources also powers most of the vehicles used for war which is why they are hungry for it.

Oil is on it's way out.  The resources the world will fight over in the future are rare earth metals needed to make high tech devices and especially military equipment.  There are very few locations where there are good deposits, and whoever controls those will have a strategic economic and military advantage.  We're on our way to solving for a world that uses much less oil, but there currently is no way around a lack of REMs.