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Middle East CTE #2 - Essay Example

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Considering the facts such as two thirds of worlds known oil reserves being in the region and the enormous dependence of the industrialized world on fossil fuels, how do you perceive the future of oil and the Middle East?
The Middle East has been the largest producer of oil in…
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Middle East CTE #2
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Middle East CTE Considering the facts such as two thirds of worlds known oil reserves being in the region and the enormous dependence of the industrialized world on fossil fuels, how do you perceive the future of oil and the Middle East?
The Middle East has been the largest producer of oil in the globe for decades. The region produces 75% of the total global oil demand. The developed nations such as America and European countries have been the main beneficially of the Middle East oil. This indicates that there is a significant dependency of usage of fossil fuels and the future of the Middle East. The Middle East economies depend entirely on oil. Oil revenue constitutes about 80% of the GDP in the region (Akiner, & Aldis, 2004). The governments of the Middle East countries depend on oil revenue to import basic commodities such as food. Syria, Egypt, and Iran are some of the countries in the region that produce their own food.
Due to the environmental effects caused by fossil fuels, the world is searching for alternative sources of energy. The escalating global oil prices also indicate the unsustainability of oil as the main source of energy for global economies (Akiner, & Aldis, 2004). In addition, most economies are considering using alternative sources of energy such as solar, wind and nuclear energy to minimize the revenues spent on oil. For instance, the US consumes about 60% of the total. America import 80% of its oil from Africa and the Middle East. Despite this demand, America is considering other alternative sources of energy in order to attain energy security. The country is investing in other renewable energy such as bio fuels and solar energy to reduce dependence on oil. Other upcoming economies such as China and India have become major oil consumers. However, the upcoming economies are keen about renewable sources of energy. This indicates that the future of oil is unclear since there is likelihood that people will stop using oil in the near future.
The Middle East holds 66% of the total global oil reserves. This has a similar implication on the Middle East economies. Thus, the future of the Middle East depends on the industrialized world economies. The on-going efforts to reduce oil dependency in industrialized countries will have significant impacts on Middle East economies. The Middle East economies are likely to reduce significantly according to the rate of oil consumption (Mabro, 2007). However, due to the massive oil wealth in the region, Middle East countries will not experience a rapid economic decline.
The western nations have been accused of control the Middle East oil. America and other western allies have been using economic policies to control the Middle East. Economic sanctions are some of the policies applied by western nations on their efforts to control the Middle East. This has created tensions between America and the Middle East. In addition, the region has resulted into internal conflicts because of the US involvement in the internal affairs and governance of the region (IAGS, 2009). This indicates that the region will remain in conflicts with the western world as long as global economies remain dependent on oil.
In conclusion, the Middle East holds nearly 66% of the global oil reserves. The industrialized countries are the main beneficiaries of Middle East oil. Thus, the Middle East economies depend on the internal relationship between the region and the western world. The Middle East economies will worsen due to the ongoing search for alternative sources of energy. In addition, the region’s economies and governance depends on diplomatic relationship with the developed world.
References
Akiner, S. & Aldis, A. (2004). The Caspian: Politics, Energy and Security. New York: Routledge
Mabro, R. (2007). Oil in the 21st century: issues, challenges and opportunities. Oxford Press
IAGS, (2009). The Future of Oil. Retrieved from: http://www.iags.org/futureofoil.html Read More
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