The whole world is battling with the mounting oil prices. Refineries profits are digging, automakers has experienced biggest slump. Rising oil prices has become biggest reason for slanting inflation, which has tattered many economies. National banks have forced to increase their rates to curb inflation that has reduced consumers borrowing potential, which inundates the profit of many big companies.
Consumers are facing increasing oil prices, which are galloping constantly. Two year before international oil prices were merely on 30 to 40 dollar a barrel, but now it is battling 60 to 70 dollar per barrel, which is really astonishing.
American invasion in Iraq considers a biggest reason for it, and now its thirst for Iran expecting another record height for oil prices. Venezuela has nationalized its refineries and thrown out western oil drillers. Nigeria is facing terrorist threat for its oil reserve and Russia is annexing its refineries from BP, Shell and Exxonmobile to empower state owned Gazprom are the other responsible factors for galloping oil prices.
American foreign policy was severely criticized by the oil producers and now surviving alone on the dais of international market. To combat with the scarcity of oil availability and future potential, US have decided to explore new potential of energy. In this addition, America has targeted to reduce its petroleum consumption by 20 percent in 10 years and give boost to more use of eco-friendly energy source e.g. biofuels.
American step came in the middle of rising apprehension of global warming and applauded by the green lobbies as well.
On one side US initiative is earning praise, but in the same league, OPEC is threatening American increasing budget for biofuels could push oil prices “through the roof”. OPEC chief cartel asserts. OPEC secretary general Abdalla El-Badri add more by saying that increasing budget for biofuels would cut investment in the new oil production.
OPEC members control about 40 percent of the world’s oil production and this warning came when leaders of the G8 industrialized nations gather for their summit in Germany.
In this meeting clean and healthy environmental issues are high on the agenda and the use of biofuels is central to the attempts of many G8 countries to cut their carbon emissions. But OPEC latest warning can hinder the possible quick break through.
Image: esru
Source: BBC
