Oil: A global crisis

According to this article, the author, whose name is Geoffrey Lean, wants to ask “How are our lives going to change as we struggle to cope with the $200 barrel?” He reports many experts’ opinions. There are Dr. Mamdouh, Goldman Sachs, Chris Skrebowski, and David Strahan. The oil economist Dr. Mamdouh says that if there wasn’t the Iraq war, the price of oil wouldn’t be so high. Another expert, Goldman Sachs, mentions that the price of oil could go up to an unbelieveable price and the era of cheap oil price will never happen again. Another expert, Chris Skrebowski, discusses the fact that there are many unpredictable things happening in the oil market. The other expert, David Strahan, tells that global oil production has achieved its highest limits.

There are several reasons that I agree with some experts. Firstly, I think the price of oil will go very high because there are too many unnecessary wars happening in the world. They not only waste human resources but also consume too much oil. Secondly, I agree with the editor of Petroleum Review, Chris Skrebowski, because in my opinion the trigger of the high oil price is that everyone wants to share this big cake of the oil market. On the other hand, I disagree with Dr. Salameh’s idea because I think some of these eight countries must have stored a big amount of oil on purpose.

From my experience back in Taiwan, the oil crisis is really a big issue. In the last couple months, the government suddently has declared to increase the price of oil. Before that day, many car owners rushed to add their fuel, which caused a long line on the street.

And from watching opinions on television daily, I think the oil crisis causes a series of things to happen, like food production declining, making poor families poorer, and economic recession.

Lastly, I’ve read one report from a magazine which made me believe more that there are speculators behind the oil market.

Reference:
Murray, J. (2008,May 25). The Independent. Oil: A global crisis. Retrieved July 1, 2008,
from
http://www.independent.co.uk/environment/green-living/oil-a-global-crisis-834023.html?service=Print