Declining oil prices: Boon or bane

After having posted a blog titled ‘Winners and losers of oil war’ on November 22, 2014, I kept on searching my soul. I felt embarrassed for talking about the oil producers only and ignoring the consumers altogether. It also dawned that both United States and Saudi Arabia have kept oil prices high to achieve their own selfish motives. It may also be said that Saudi Arabia are an accomplice in this crime against humanity because common men were the worst hit.

Saudi Arabia has nurtured its own worst enemy in oil trade. The largest oil producing country failed in realizing that prices were kept high to enable shale oil and gas production economically viable in the United States. Saudis were looking on one side of the coin, extra petro dollars to finance their lavish spending and never thought that one day United States would become their worst competitors, may be, because many in this world fail to look beyond their nose and Arabs were no exception.

As all and sundry know that media is controlled by west, particularly the Zionists, it is trying to create an impression that Saudi Arabia has initiated oil war against United States. While all the report suggests that OPEC should curtail production none has pointed out that United States should curtail its output.

Global media has also not being honest as it talks very little about the benefits of nearly 40% decline in oil prices. Many non-oil producing countries that were victim of high oil prices have witnessed signs of improvement in their economies. Industries like airlines and shipping have wiped-out huge accumulated losses and inflation around the world has come down.

Reduction in oil prices has also opened the Pandora Box that many of the governments have been keeping POL prices high to earn extra revenue. One of the reports has exposed that in United Kingdom retail price of motor gasoline include one-third tax. Such countries may also feel upset with the decline in crude oil price. The British government may not be alone; dozens of other countries may also be doing the same.

The time has come to decide if the interest of a few monarchs and oil tycoons is important or the millions of people deserve a better life. Oil politics has led to wars in many countries the most naked examples being Iraq, Sudan, Nigeria, Iran and Libya. One point has to be kept in mind that higher oil prices have made lives of millions of people miserable.

May be, the time has come to establish a global regulatory authority to oversee, monitor and control crude oil production and prices. No country should be allowed to protect the interest of a few oil producing companies only. If some of the shale oil producers could sell oil below US$50 a barrel and make profit why should inefficient companies be allowed to thrive by ripping off millions of people around the world.