Thinking critically 2 - Essay Example

Thinking critically 2 The main point that the makes in the reading is the misconception that oil-producing countries exploit consumers by causing, and benefiting from, high final prices. The author noted that while crude oil prices remain constant, fairly, across nations, taxes that governments of consuming countries levy is the main factor to the difference in prices of oil products across countries. In addition, revenue that governments of consuming countries derive from oil is more that revenues that governments of oil producing countries derive.

Further, unlike governments of oil consuming countries, governments of producing countries use derived revenues to facilitate delivery of oil. Based on data on ‘who gets what,’ OPEC wealth and power, remains low, compared to those of consuming countries. This is because their net revenues from oil are lower and they have little influence on prices of oil products in consuming countries (OPEC n.p).Works citedOPEC. “Who gets what from imported oil?” OPEC. February, 2014. Web. June 10, 2014. .