It’s amazing to look at what has happened over the last 18-24 months with regard to oil pricing. It was announced earlier in the year that it was almost a certainty that the price of petrol/gas would reach $8 a litre in the next 12 months in Australia. Like most other people around the world I braced for the ever increasing oil price, not knowing how consumers would afford such an increase in price.
In mid 2008, it was announced that grocery prices in Australia had increased by around 40% in just 12 months. This came as no shock as families large and small were feeling the effect of the increased price of energy. Whether a car owner or a user of public transport price increases could be felt everywhere – but wages certainly didn’t increase by 40% in the last 12 months as did grocery prices.
I watched with interest as OPEC met to discuss increasing oil production to assist the US and other countries in controlling the ever increasing cost of goods and services caused in no small part by the massive cost of oil (thus energy) which we rely on to survive in our economy. The result was no change in production levels which ensured the continued soaring price of oil and the ultimate crossing of the point of no return. In other words oil reached a point whereby the cost of living became too high for people to survive and the rest is history – we are now living the result of the oil price greed.
There are so many reasons in addition to the price of oil which have caused the world to be in the position that it is currently in however the price of oil has played no small part. I am thrilled to see the pricing fall and I have no sympathy for those countries that showed little foresight in allowing oil prices to remain at unsustainable levels – they now have to deal with pricing which is sure to be a fraction of the highs they enjoyed and I’m sure the price of oil is going to continue to fall – it’s music to my ears!
Greed is never a nice thing to watch and be part of and ultimately it isn’t something that leads to positive outcomes for those with greed in their hearts. As the world, soon to be led by President-Elect Obama, searches for alternative energy sources it may be just a matter of time before oil greed is a thing of the past – let’s hope for all our sake’s!