These days almost on daily basis we read about the impending recession that will happen in the
Then I thought are we lucky or what? This is what I think, for some blessing-in-disguise sort of luckiness, all of the world events may probably have little effects on us. Thanks to oil, we have not been producing anything else which means we will not be affected by the fall in world demand of anything, well..except oil. As long as oil price goes up, then we haven’t got anything to complain. Our economy will continue its growth. Our inflation stays low (thanks also to oil money that have been used to subsidise our cost of living). And if there will be a recession, we will actually stand to gain. A world recession will push the prices of all goods (including food) downward. Since we import almost ALL of our needs, then we can continue not producing anything and buy from abroad, which in fact will become cheaper.
And then we all can continue growing… without development.
And of course, if only oil never runs dry.
Salaam.
4 comments:
lol, oil never runs out? now thats what i call wishful thinking heheh... and against all economics principle of scarcity :p
iconomic.blogspot.com
do read my points there :)
When is the oil and gas going to run out? Thats $300Billion question.
took this from the cia world factbook;
brunei has 1.35 billion bbl proven reserves of oil. it extracts 219,300 bbl/day, so its roughly 80 million bbl per year. 1.35bn/80mln we get nearly 17 yrs. those are the stats in 2006, so yea.. brunei oil will run out in 15 yrs, around 2023
brunei proven gas reserves stood at 374.8 billion cu m, it produces 11.03 billion cu m per yr. 374.8bn/11.03bn we get approx. 34 yrs, the stats was compiled in 2005 so its 31 yrs now. brunei gas will run out in 2039.
using above info brunei's annual earning for oil is roughly US$10bn (annual production 80 mln bbl of oil x average oil price of $125) and annual earning for gas is US$4bn (annual production 11bn cu m of gas x average price of $0.37 per cu m)
so there u go, we earn $14bn per yr, cia factbook also mention brunei has a current a/c surplus of $7bn in 2007, that mean half the revenue is spent of subsidies, national expenses n etc, though how many is wasted in failed and unnecessary projects, we'll never know. but if we start saving the $7bn surplus per year we should have extra US$105bn reserve by 2023
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