Archive for the ‘Oil’ Category

High price of crude oil, touching nearly $150 a barrel, has alarmed every nation across the world but the ones producing. Is it really the excess usage of non-renewable source of energy causing its depletion or a mere speculation using the threat of depleting resources for their ulterior motives? Really hard to say, but i tend to go with the latter.

We know, for ages, that western countries have higher energy usage per person. USA consumed 340.5 million Btu of primary energy per capita in 2005, which was roughly the same in 1980 (343 mBtu). Interesting to note is the rise in per capita energy consumption of Saudi Arabia, U.A.E., and China. The middle eastern countries have a very high per capita consumption, probably needed for the continuously running air conditioners. Saudi Arabia’s consumption has increased from 166.3 mBtu in 1980 to 252 mBtu in 2005, an 85% increase. U.A.E has increased its consumption from 267.2 to 563.6 mBtu, a whooping 110% increase!

In South-East Asia, China has topped India by a significant margin. From 17.8 mBtu to 51.4 mBtu in China as against 5.9mBtu to 14.8 mBtu in India. Though the percentage increase of India is high, the per capita consumption is minuscule when compared to western, middle eastern or Chinese counter parts. Per capita consumption of oil, barrel per person per year is 2.18 for India, one of the lowest in the world (world avg: 12.52) whereas it is 78 in Saudi Arabia.

Oil consumption per capita across the world

Oil consumption per capita across the world.

These are the stats in 2005. The increase by 2010 or 2015 would be phenomenally more for reasons obvious below. Why has the consumption in middle eastern countries increased so much over the years? I’d say because of whimsical spending.

Al Burj, Dubai

Al Burj, Dubai is growing on what you pay for fuel

Nearly 25% of the construction cranes in the world are in Dubai. Wonder why? Two of the world’s largest sky scrapers, one under construction, Burj Dubai, and other, Al Burj, in proposal, are coming up in Dubai along with numerous other multi-billion dollar infrastructure projects. Artificial Palm islands, three man-made islands in Dubai, is the largest land reclamation projects in the world, and would be the world’s largest artificial islands. Besides this, there are several other highly ambitious projects to shell out billions of dollars like Hydropolis – world’s first underwater luxury resort, The World islands – artificial islands shaped like world map, and Dubailand – under-construction entertainment complex bettering Orlando’s Disney world. There are several high rise super luxury residential properties, and malls coming up along with Dubai Metro system, and world’s largest international airport.

The construction of transportation network, good shopping malls, and residential properties are, no doubt, ‘necessities’ of prosperous nations but projects like Ski Dubai, to ski in desert, is a whimsical idea, i would say, to splurge money made by selling oil to other countries. So are the projects like Al Burj, Palm islands, and Hydropolis. I remember another project to grow corals in the unnatural corrosive habitat in the coast of gulf by modifying the sea to assist coral growth. What next? May be they want to have Alps or Mount Everest artificially made!

About 80% of the world’s readily accessible reserves are located in the Middle East with 62.5% coming from 5 Arab countries: Saudi Arabia (12.5%), UAE, Iraq, Qatar and Kuwait. Such huge spending can result in ever increasing price of oil as they have no other source of income. The concept of income tax does not exist as they are already making too much money by selling oil.

Supposedly there are more construction workers than citizens in UAE! What will happen to these people once these projects are completed in, say, another 10 years? Thousands of civil engineers, electrical engineers, and laborers would be jobless. Some of them might settle with hospitality sector for running and maintenance of these super luxury palaces of the rich, but the fate of rest is scary. Most of the workers are from developing countries like India. They would promptly be sent back home, and the unemployment would be rampant along with sky-rocketing fuel price.

The current increase of fuel price is funding these crazy spending spree of some of the oil rich countries. The effects of the completion of these projects would be felt all over the world, the cost of maintenance of these would sky-rocket the already high oil prices. Global warming might not reduce if the non-producing nations limit their usage when these oil rich nations are blowing up non-renewable energy sources for maintaining snow in desert or having underwater resort!

Source: EIA (Energy Information Administration) – Official energy statistics from the U.S. government for statistics on per capita primary energy consumption.

P.S.: I’m back!

Read Full Post »