High-Priced Oil Adds Volatility to Power Scramble

A line for fuel in gas station in China.

From: http://www.nytimes.com/2007/11/07/business/07oilwealth.html?pagewanted=1&_r=1&th&emc=th By Mark Landler

Oil is one of the most valuable sources for many nations. It helps the nation to grow up rapidly and can be used in many different ways, such as transportation, heat, and machines. However, oil is scarce and not enough for everyone to use. The prices of oil go up and up which hit $96.70 on November 6. Many oil imported nations such as India and China are confronting rising economic and social costs while oil-rich nations enjoy the profit they get.

Many oil-rich countries are poor nations and some of their hope for development are depriving by the foreign government. However, they use oil as a tool of national transformation. They use the money to improve the standard living of their people. For example, the government built new railroads and provides the free health care and free education in Venezuela.

While some are enjoying, the others are struggling. China must import half its oil to help the economy grows even though it was exporter before. As the shortage of oil occurred and some Chinese refining companies refuse to supply at an unprofitable prices, China had to raise the retail prices. As the oil prices increase, the burden will become heavier and heavier on Chinese people.

Oil is not a natural resource that can be produced easily. People need to use it carefully and wisely.