The Oil-Producing Companies and Countries: the US and Other G7 Countries - Research Paper Example

The most essential part of the oil industry seems to have shifted from the oil producing countries to the governments of major countries within the G7 category as they seek to gain more from the revenues and taxation of oil in their respective countries. Incidentally, many think that the oil-producing countries have a major say in what is o be done, but the problems will only increase owing to the revenues placed by the governments (Zycher 56). In essence, the people controlling the prices are the countries and their governments rather than the estimated average amount earned on an annual basis by the OPEC members.

The US and other G7 countries have a myriad of energies to choose from, yet that will not be essential in defining and determining the role and growth of the oil expenses within the society. Ideally, it is very important to create the right impression given the statistics on the GDP growth between the OPEC countries and G7 countries. The OPEC countries have to take into consideration the amount of money used for exploration and transportation to terminals, whereas the G7 countries only look at few transportation expenses (Zycher 58).

Instead of complaining about the issues taking place within the working oil industry, it is important to understand that the same G7 countries complaining of high tax revenues are doing more to evade the utility of fossil fuels, yet want to continue controlling the way these oils are traded within their boundaries (Zycher 61-2). With the high taxation regimes in place, it is clear that something needs to be done to remedy the situation. More revenue ought to go to OPEC countries, as these are essential for exploration and trading expenses by the oil-producing companies and countries.

Works CitedZycher, Benjamin. 'OPEC'. In David R. Henderson (ed.). Concise Encyclopedia of Economics (2nd ed.). Indianapolis: Library of Economics and Liberty, 2008. Print.