Look at the following data for crude oil.
The table gives an estimate of reserves of crude oil (column 1). More important, it also tells us for how many years the stock of crude oil will last if people continue to extract it at the present rate. The reserves would last only 53 years more. This is for the world as a whole. However different countries face different situations. Countries like India depend on importing oil from abroad because they do not have enough stocks of their own. If the prices of oil increase this becomes a burden for everyone. There are countries like USA which have low reserves and hence want to secure oil through military or economic power.
The question of sustainability of development raises many fundamentally new issues about the nature and process of development.
(a) Is crude oil essential for the development process in a country'? Discuss.
(b) India has to import crude oil, what problems do you anticipate for the country looking at the above situation?
Look at the following data for crude oil.
The table gives an estimate of reserves of crude oil (column 1). More important, it also tells us for how many years the stock of crude oil will last if people continue to extract it at the present rate. The reserves would last only 53 years more. This is for the world as a whole. However different countries face different situations. Countries like India depend on importing oil from abroad because they do not have enough stocks of their own. If the prices of oil increase this becomes a burden for everyone. There are countries like USA which have low reserves and hence want to secure oil through military or economic power.
The question of sustainability of development raises many fundamentally new issues about the nature and process of development.
(a) Is crude oil essential for the development process in a country'? Discuss.
(b) India has to import crude oil, what problems do you anticipate for the country looking at the above situation?
a.Yes, crude oil is essential for the development of a country. Crude oil provides the base of industrial advancement.
- 97% of the energy required for transportation is provided by crude oil. A product called Premium Motor Spirit that is derived from crude oil is essential for vehicles.
- U.S.A. still depends on crude oil and gas for the generation of 20% of its electricity.
- Crude oil is also essential for the production of plastics, paints, petrochemicals and synthetic fabrics.
- The economies of several nations also depend on the export of crude oils.
(b) Rising imports of crude and petroleum products have led to a severe problem in the balance of payments. On the other hand, the costs and prices of a wide range of goods have increased due to global inflation in oil. In spite of stringent monetary and fiscal controls, the wholesale price index in India has been continuously rising. With such high reliance on imported energy products, a significant proportion of the export earnings, which otherwise could be channeled into productive domestic investments, is used to meet expenditure on these imported products. Therefore, India's dependence on foreign countries for crude and petroleum products will have a negative impact.
a.Yes, crude oil is essential for the development of a country. Crude oil provides the base of industrial advancement.
- 97% of the energy required for transportation is provided by crude oil. A product called Premium Motor Spirit that is derived from crude oil is essential for vehicles.
- U.S.A. still depends on crude oil and gas for the generation of 20% of its electricity.
- Crude oil is also essential for the production of plastics, paints, petrochemicals and synthetic fabrics.
- The economies of several nations also depend on the export of crude oils.
(b) Rising imports of crude and petroleum products have led to a severe problem in the balance of payments. On the other hand, the costs and prices of a wide range of goods have increased due to global inflation in oil. In spite of stringent monetary and fiscal controls, the wholesale price index in India has been continuously rising. With such high reliance on imported energy products, a significant proportion of the export earnings, which otherwise could be channeled into productive domestic investments, is used to meet expenditure on these imported products. Therefore, India's dependence on foreign countries for crude and petroleum products will have a negative impact.
