Commodity prices are rising every fortnight with gasoline prices being the hot topic of discussion; it seems only fair we too write about it…
Recently I posted a question thru the well renowned LinkedIn website and the response was overwhelming… it seems everyone in every country is concerned, if you are not; here is a reason for you to start worrying…
As prices increase, so will the goods around you, in the US alone, prices of common goods will go up as the economy highly depends on road transportation to get deliveries across from coast to coast.
As my friend Dhruv and I discussed; One might not feel the pinch instantaneously as this is merely a strategy by energy organizations to profiteer by making you comfortable at a certain level, raise it by a percent of two and again stabilize till they reach the hilt of their greed, there is no oil crisis, no one wants to stop trade, no attacks on pipelines, just pure business, remember “Syriana” anyone?
Maybe I’m just speculating, but I am concerned at the geopolitical and corporate profiteering aspect of the whole game… The same follow-through occurred in the 70s and OPEC was formulated to basically share the profits of the energy crunch. Seems Shirley Bassey was right in the whole History Repeating routine… The world moved to more fuel efficient cars, electric vehicles were too introduced… but all was lost with the whole Hippy fiasco that hit the late 70s and progress into eco-friendly objectives just became a mere fad at the time. Let’s hope we get it right this time around!
What’s causing this? Well, No emphasis on extraction techniques on and off shore and high dependence on just a few countries to deliver black gold to the world is a major factor. High demand for this fossil fuel is stirring up a ruckus as energy requirements are and will increase the world over and petroleum will formulate 85% of the energy mix by 2030 as suggested by OPEC officials last Thursday.
Like a coin, this too has a positive side;
Finally, People will show interest in alternative energy sources which are eco friendly and cost effective… ventures like Bio Diesel, Power cell, Windmills and Solar Energy Harvesting will become a part of the government’s agenda… Nuclear power will also become an important and noteworthy source, but controversies will always shard this source and will be tightly governed by the G10 Summit.
Carbon Credit Traders and Trading countries will benefit from this fuel racket as well, making this so-called non-existent yet universally accepted commodity to take the forefront in energy trading.
Services Industry – Outsourcing will become prime beneficiary as companies will rather depend on cross cultural BPO setups to provide expertise as staffing will become more expensive.
