There was a time when everything depended on coal. In early 1900 coal was everything. And then before world war one, WINSON CHURCHILL, switch the entire fleet from coal to oil. Since then our daily need completely depends on oil. Moreover if not directly but indirectly everything depends on it. Oil crisis is a result of IRAN and ISRAIL war.
There are two main reasons of oil crisis. Firstly IRAN closed state of Hormuz. As Hormuz is located in the middle of IRAN and OMAN as a result IRAN can control it. Mainly all gulf oil pass this point to reach their destination. 48% of oil come from gulf area and for that reason, the ships have to cross Hormuz. But IRAN started attacking the ships which are crossing Hormuz. Besides IRANS gas and oil field was attacked by ISRAEL. This is why IRAN attacked almost all it’s neighborhood gas and oil field. IRAN attacked QATAR, SAUDI ARABIA, ISRAELS gas and oil field in addition to that it attacked their petrochemical complex.
Crude oil:
Oil means crude oil. It means the unpurified and unseparated from of oil. After applying heat on the oil and finally after separating them we find gasoline, diesel, jet fuel, lubricants, petrochemicals and others. Car and vehicles run using Gasoline. Trucks and Ships run using Diesel. Jet fuel is for plane. Also petrochemical is the basic ingredient for daily necessaries. It is used from plastics to medicine. Its in our toothbrush, phone case, polyester cloths and a lot of other things.
Also as a byproduct of crude oil we get natural gas. In addition to that LNG is produced by natural gas. Also fertilizer is made by natural gas. Besides, before 26 February almost 100 ships used to cross Hormuz everyday. 50 ships in and 50 ships out. 2/3 of it carried crude oil, refined fuel, natural gas etc. 1/3 of it carried coal, grain, importantly fertilizer. Almost 2 billion dollar energy was crossing state of Hormuz everyday.
Results of oil crisis:
Transportation problem:
Crisis of oil is effecting the price of fuel. For example a London to New York flight ticket costed around 550-650 USD before 2026. Now the price is 900-1100 USD which is almost double and also you have to book 1 month earlier. Last minute emergency tickets cost 3000-4000 USD. So we can say this is a big lap. Again ships and trucks run on diesel, so diesel is the most important fuel. Because export, import everything depends on it. Because of HORMUZ blockade shipping a container from Asia to Europe is 300% more costly then before. Also the price increased from 3 USD to more than 5 USD. As a result in some places egg and cooking oil price increased by 40%. Also most cars and bikes run on gasoline and the price of gasoline is increasing everyday.
Food crisis :
How oil crisis related to food crisis? Well the production of food almost depend on it. Countries grow their own food and also they they export from other countries. We can’t find any country which is sufficient on its own. But every exported product and food come via ships or via trucks. Now the problem is both ships and trucks depend on diesel. Unfortunately because of oil crisis diesel price increased by 40%. Which is expected to increase more. So imported food items price is increasing and will increase. Now some people will say we still can access food, it does not matter if it’s high in price.
But their is another crisis. Basically fertilizer is made with natural gas. As their is shortage of natural gas now so this is impacting the production of fertilizer. In addition to that 1/3 of fertilizer which is needed for food production comes from gulf. Because of Hormuz blockade farmers can’t get fertilizer. On top of that gulf fertilizer mainly comes to country like India, Bangladesh, Vietnam, China which means almost all the Asian country depend on it. Also European countries also depends on gulf fertilizer. So without fertilizer farmers won’t be able to grow food properly. Bugs will eat crops and in bonus natural calamities will also spoil food. So their will be huge crisis of food in recent years if this goes on.
Also some Asian country depends on LPG for cooking food. But because Hormuz is close, their is shortage of LPG gas. So they are paying heavy prices for cylinder. Even some people can’t access them.
conclusion of oil crisis:
Well maybe that’s not it. People have to go through a lot more if this goes on. The economy was not this unstable even in corona time. A lot of country are facing electricity crisis. Because electricity production depends on gas and oil. In some countries village people can’t access electricity for 12-14 hours. If this is the situation of world now, what will happen if the war continue for ling time? Read more
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