DailyDirt: The Curse Of Oil
from the urls-we-dig-up dept
Having huge oil reserves can be an economic curse for a developing country. The natural-resource curse often produces oil-rich nations that are ruled by dictators and are so reliant on petroleum that its economic growth is hindered because all other industries are neglected. The prediction of the end of fossil fuels will come true someday, but the exact time of death isn't easy to forecast because improving technology seems to keep extending the useful lifetime of oil. Here are a few links on the topic of planning for a post-oil economy.
- Saudi Arabia discovered its oil reserves in 1938, and now oil accounts for 90% of the country's exports and about half of its GDP. By 2030, those oil reserves could start drying up, so the country is starting to look at ways to diversify its economy and create a culture of innovation. Changing an entire country's mindset about work and entrepreneurship isn't exactly a simple task, however. [url]
- A recent report predicts that at the current rate of development, global oil will be depleted about 90 years before its replacement technologies are ready. This prediction is based on stock market data, not on any single expert's opinion on the state of alternative energy projects. So will we see the end of oil coming -- and not change our behavior in time? [url]
- Norway is one of the few examples of a country that has managed its oil reserves to avoid the natural-resource curse. After Norway discovered it was sitting on about half a trillion dollars worth of black gold, it didn't allow drilling projects to commence at full-speed. By strictly regulating its oil drilling operations, Norway has been able to prevent oil money from destroying its existing industries and economic health. [url]