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The Impact of the Arab Spring on Egypt's Energy - Research Paper Example

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The research paper "The Impact of the Arab Spring on Egypt's Energy" will focus on Egypt energy situation after the Arab Spring and its current choices on the international oil gas trade. The paper will specifically focus on oil production in Egypt, its investment, shipping, and consumption. …
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The Impact of the Arab Spring on Egypts Energy
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The Impact of the Arab Spring on Egypt's Energy

Download file to see previous pages... Investment in oil production is critical to both political and economic stability of the Arab countries. Key players in the oil industry usually value political stability because it dictates the relationship between the international players and the producing countries. For instance, the relationship between BP and political regime of the ousted Egypt President Mubarak was critical to the survival of the company in Egypt. In most cases, the political influence of a country defined a relationship between the country and the international players. Policies devised the oil producing countries do not only influence the production oil and gas in this countries but also influence its supply in the international market.
The political platform of most Arab countries receive its financing from oil as the major economic resource. However, some countries derive their finances from trade and labour resource, which remits funds that support these countries. The supply of trade items in this region depends on political goodwill or international politics (Youngs 136). Thus, the unstable political structure is susceptible to challenges because it lacks proper structures that could influence beneficial trade deals in the international scene. The Arab Spring is a threat to regional integration and similar cooperation. World economic report groups the Arab countries as heavily reliant on oil trade.
Since the Arab countries indulged in the upheavals, they have registered economic slump, calling for international aid and humanitarian aid. Ideally, the spring has devastating effects of the political structures that are crucial to the development of the nations. Observers have remarked on the consumption trends in the international market as well as the national market and noted a change in trend in the consumption of the oil and oil products. Critically, the consumption trends owe a lot on the international politics as defined by policies that create and promote the international relation (Prausello 166). For instance, the move by the international community to step up the war against Libyan president is an indication of influence of political relation in relation to the Arab spring. It means that the threat created in the political structures of these nations would have devastating impact on the growth as well as trade among these countries and the world. Domestic Consumption in Egypt Arab countries are leading other countries in the world in oil production. In 2005, Arab oil stood at 59% of the economic oil production of world, while the production of economic gases stood at 35.8% of the total world production (BP Statistical Review 15). The quantity of oil that Arab countries took to ...Download file to see next pagesRead More
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