Blog 2 - Essay Example

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Graph two indicates that OECD countries gained more revenues from oil taxes than the OPEC members which gained fewer revenues from exporting oil. It also…
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Blog 2
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Graph one shows that OECD countries earn very high income in one litre of oil that is consumed in one of their countries. Graph two indicates that OECD countries gained more revenues from oil taxes than the OPEC members which gained fewer revenues from exporting oil. It also highlight that revenue by OPEC covers exploration, production, and transportation while that in OECD is for development purposes. Graph 3 shows that OECD countries earned more revenue per barrel of oil than the OPEC countries. The fourth graphs show that oil products were highly taxed in OECD countries than in OPEC countries. This increased its prices in the market.
There was misconception about the issues of who gets what from oil revenues because many thought that money that the drivers pay to fill their tanks goes directly to the oil producing countries. In addition, people thought that the governments do not tax oil in the country because it is an important driver of economic growth. They thought that taxing oil will increase the living standards in the country. However, the government looks at the issue in a different dimension. Read More
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