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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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    The importance of oil revenues and the factors influencing them

    Rocky
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    The importance of oil revenues and the factors influencing them Empty The importance of oil revenues and the factors influencing them

    Post by Rocky Tue 30 Aug 2016, 6:45 am

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    2016/08/30 | 13:21


    (Encyclopedia of the day for news | [You must be registered and logged in to see this link.] ) -
    Writer / Hamid Abdul Hussein al-Jubouri



    Oil revenues occupies great importance for developed economies and Namh alike, as well as the case for the countries producing or consuming. 

    Producing countries get them and contribute to the financing of the general budget and achieve economic and social development directly. 

    As for the consuming countries , they benefit from those proceeds, but indirectly that is, they achieve socio -economic development, but after the use of crude oil in the production of goods and services that contribute to the achievement of that development.


    Oil revenues account for a large proportion of the oil economies, especially the economies of Arab countries as a mono-production countries, which relies too heavily on oil revenues, they represent the backbone of economic development in those countries and the source of the GNP.

    Oil accounts for a key component in the construction of an industrial base, particularly the refining and petrochemical industry or what followed from other subsequent industries, not to mention what is represented by the oil as a source of power supply depends most oil-producing countries on oil to finance their economies and that because of its many positive benefits.

    But at the same time, characterized by volatile prices between now and then and for many reasons leading to the fluctuation of revenues, this will create a dependency of the economic sectors of the oil sector and then the economy unilateral economy is exposed to fluctuations that affect the oil sector, as is the case for the Arab States of the oil becomes suffered by him when he faced a real challenge affects the basis of its existence, which is the erosion of the material base (fiscal revenue) as a result of the deterioration of oil prices due to political and military crises (the first and second Gulf war) as well as the spread of the rentier practices and financial corruption and waste unjustified financial potential, these factors have led to economic growth and capital formation rates decline and poor distribution of wealth among individuals.

    As a result of the above, the oil revenues have positive and negative effects , and these effects are due to themanagement of oil revenues, it was a sound and relevant national plans and future strategy, the management of the effects will be positive. 

    If the same mentality of rentier consider oil revenues as a baby or fortunate or management coincidence, and have only duty is to distribute those proceeds to citizens in exchange for earning their loyalty and thus ensure its continuation in power, they are so worked to cut off the relationship between oil revenues that accrue to the state of the stream and the effort the production as a whole, ie , it believes that oil revenue did not come as a result of ahumanitarian action regulator produces for effort or risk tolerance.


    This is referred to Luciani when he said (that the basic character of the mentality of the rentier is that they involve a cut in the chain between work and reward him Valjza becomes a gain surprise is not the result of hard work entrepreneur, he is related to put what, so it is fair to losing and has a recipe Nhazh opportunities).

    Oil revenues are the cash returns obtained by the oil -producing countries against the export of oil after it is tosatisfy domestic demand. 

    Certainly that oil revenues are affected by a range of factors that could explain illusions , including the following:


    First, oil prices //

    Oil prices represent the president , which affects the size of the oil revenue element, including the volatile oil prices , the rise and fall as a result of many reasons, delusional economic factors , political factors and natural factors ... etc. 

    The natural factors , supply and demand no more demand for oil surged higher prices, this leads Waller high volume of oil revenues. 

    and vice versa, in the case of high Aerad. 

    As for the political factors are represented by blocs and agreements and others working to increase or decrease oil production to achieve price equilibrium for oil. 

    natural factors represented by climate change, which leads to increased demand for oil ambience if the climate is very cold and the increased demand leading to increased prices and then increase the volume of oil revenues, and vice versa in the case of mild weather.


    Second, the size of oil reserves //

    Oil reserves discovered crude oil in quantities known in the ground , which can be extracted and economic manner and with the tools available. 

    For more information on oil reserves and types can review the confiscation of private property economy of oil. The 

    more oil reserves largely available whenever help those reserves to production dramatically after accusing reference to increasing energy productivity that are commensurate with the size of those reserves, and therefore the higher the oil reserves led to increased interest in increasing production capacity and increase production and increase thevolume of oil exports after the local need of crude oil to cover, thus increasing the size of its oil revenue.


    Third: // inflation

    Inflation is defined as a general rise and Almstr in the prices of goods and services. 

    Since the oil his price unchanged if other commodities, so . Oil prices rise as rising prices of other goods, and therefore, inflation affects the size of the oil revenues, as whenever the rising volume of inflation whenever lead this rise to a decline in the volume of oil revenues fact, since oil revenues by rising inflation , the size of assuming thesurvival of other factors constant (production and export volume, for example) were with the capacity and purchasing power is high, but after for inflation certainly will decrease the ability and the purchasing power of those proceeds . for example, revenue was blister by the high volume of inflation lead to the completion of most of the development projects with long - term or did not make the state budget deficit at least, but after the rise in thevolume of inflation noticed most of the oil countries suffer from the lag in the implementation of projects as well as fully accomplished, and we're seeing also that most of the budgets of oil producing countries in deficit, due to itsdependence on oil in a very large outstanding fluctuating prices.


    Fourth: the political decision //

    Economic factors are influential only on the volume of oil revenues, as it has become a political resolution is not as important as economic factors in influencing the size of the oil revenues no longer, the best example of this is the decision taken by OPEC in 1973 to prevent the export of oil to all States that supported the Israeli aggression on Palestine so as to prevent the aggression on Palestine oppressed Arab world at the present time, so escape led to the high oil prices of almost 2.11 per barrel to $ 11.12 in 1973, as well as for the Iraqi-Iranian war, not originating from oil, it's on At least it was not will continue for eight years.

    Fifth, financial and administrative corruption //

    One of the main challenges facing the oil countries at the present time is the issue of corruption, which worsened dramatically with the increase in the volume of oil revenues to those countries, as it can not make progress in the development of various Boassadtha process as long as there is corruption to thrive in the economic sectors. Through corruption it is wasting and squandering oil revenues, which threatens the political and economic stability of the process, corruption and shows dramatically, especially in periods in which the weakened state capacity and retracts the civilian life for the benefit of the corrupt and hence corruption is characteristic inherent to the state and society, where most cases of corruption are distributing land and positions on the basis of loyalty to the government and clan or in looting, particularly in the aftermath of wars or revolutions or uprisings.

    This is what happened in Iraq , when as much as the former Iraqi oil minister Ibrahim Bahr al- Ulum size of thelosses suffered by the oil ministry and suffered the Iraqi economy by the smuggling of oil derivatives is between 10 and 15 per cent of the budget assessments for the import of these derivatives, amounting to $ 4.5 billion, also refers Radhi Hamza Radi, President of the Commission on public integrity previously to corruption in the oil sector ,saying (that the loss of public money worries officials in the Government of Iraq. 

    the more difficult the fight against corruption because of the absence of a strong mechanism to control all institutions staff, due to the lack of support from the departments responsible for law enforcement , has been fueled by the financial losses of the worsening corruption in the oil sector is the targeting and destruction of vital oil facilities and carrier lines and refineries, which resulted in the stagger production and distribution activities and the volatility of export crude oil rates and increase the need to import oil derivatives high Bklv and foreign currency parallel with the phenomenon of smuggling). 

    Accordingly, the the total size of the losses during the period of the last war and its aftermath reached 7 billion dollars.





    Source / network news Informatics

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