Oil by Laxer James - Essay Example

Oil” Book Review “Oil” Book Review Introduction “Oil” by Laxer James looks at today’s world or global over dependency on the oil, both industrialized and non-industrialized worlds, and shows hurting realities of the relationships between money, politics, and oil. “Oil” examines the politics and economics of oil in Russia, the Middle East, the Western hemisphere, and the Caspian Sea regions; history of the petroleum industry and petroleum; alternative energy sources, climate change, and peak oil; and the special challenges of avoiding the crisis. Laxer did research on the real price of oil, not prices per barrel, in 2007; Laxer quotes the barrel’s price as $98 in November 2007, he tries to predict how it will be paid for in the future. " Laxer looks at how the world became "oil addicts" in the "the Hydrocarbon Age" chapter, he looks at the comparative newness of the petroleum as an important commodity, moreover, he looks at the swift establishment or development of the international and American oil companies that came to take over and control the industry, in both terms of price-setting and production. Laxer looks at the roles of the Organization of Petroleum Exporting States (the OPEC) that e in the ups or downs of the oil prices in the 1980s and 1970s; the OPEC played a crucial role (Laxer, 2008). The U.S. looked into how it considered petroleum or oil as a strategic commodity after World War II; the emanating issues of post-war foreign policies triggered by the need for ensuring the oil reserves’ security in the allies of the U.S at the interest of the U. S. The author looked and explained in terms or direction of this need, the main reason for political interventions and alliances in the Middle East, especially when the American oil reserves, domestic, have diminished drastically. The author looks at the ‘peak oil; the rising issues and concerns on greenhouse gas emissions and the global warming. The author refers to "Peak oil" as the estimated point at which the global or worlds petroleum outputs are maximized or has maxed out; the author reminds the audience on implication from the availability of the petroleum reserves, he talks on the costs of refinement and recovery being met by the price stipulated on the sale of the final refined product. Despite the estimations of the peak oil are arrived at, the truth is that oil or petroleum is one of the finite commodities that is running out or being exhausted. The issues or problem of climatic changes is among the increasing challenges. Laxer has no answers to the problem but expounds thinking on them of the global leaders - economic, political, military, and social. Laxer tries to answer how the industrialized world is addicted or hooked on oil, a source of energy that is non-renewable; and how the non-industrialized world is not avoiding the addiction. Laxers “Oil” avails concise and thorough overviews of the economic and geopolitical circumstances that have led to world dependency on the petroleum products, from fuelling different means of transportation or vehicles to the power industrial running, he looks at the component of the host of produced or manufactured products that are necessary to the 21st century’s civilized life. Methodology The author revisits the early years of the 21st century on how the world ran on petroleum, and in the present. He looked at a situation that the natural gas and oil are taken out of the equation; he predicted that transportation systems, agricultural, home heating, and the industrial production or manufacture, and most of the electric power generation plant would stall or grind to halt. The global oil production was estimated to about a total of about 75 million barrels in a single day. Laxer looked at how the 5 percent of the global population that is the U.S. consumes oil; the U.S. consumes about 20 million barrels of oil per day, that is, over a quarter of the World’s consumption. The top five petroleum-consuming countries were considered to Japan at 5.80 million barrels in each day, China at 6.41 million barrels in each day, Germany with 2.7 million barrels, and then Russia standing at 2.8 million (Laxer, 2008). The author considered oil as the chief fuel utilized in the provision energy; he found about 90 percent of the World’s energy consumption on propelled automobiles, airplanes ships, and trains utilize oil. He looked at the sources of energy in the U.S.; about 40 percent of U.S. energy consumption is from oil, petroleum, and natural gas. Furthermore, he looked at production rate of the large oil consumer and found out that the U.S. only produces less oil than consumption, less than half, hence left on depending on imported oil and petroleum. Laxer looked at the how some economies are growing and the pressure that is expected to be exerted on the commodity; he looked at India and China how they are rapidly industrializing, and also the general trend in global demand for oil commodities; there is steepened rise and he projected the trend to go on (Laxer, 2008). Main Argument Although the Middle East and oil have been synonymous for long, the author, Laxer, reminds the audience that there are significant reserves of oil or petroleum existing elsewhere on the earth: in Eastern Europe, Russia, is major supplier of petroleum and oil to extended parts of Europe, despite of its pipeline system’s serious disrepair, he illustrates how both the strategic roles of the Caspian Sea oil producers and their tactics are utilized in controlling pricing and production. Canada has been portrayed as one of "the largest source, single, of oil and petroleum imported into the U.S." and the history of its oil explorations in the country, and also the ways in which foreign or international interest, and the foreign or international control of the industry, in the product have shaped the country, that is Canadian, energy policies have been concisely delineated. Venezuela and Mexico are among two huge producers in the Northern America continent, Venezuela is particularly pointed at the most successful, especially in the utilization of its oil wealth in the pursuance of its domestic economic and social objectives (Laxer, 2008). Oil is the main source of energy in all worlds’ economy; in the twentieth-century oil availability and low price, relatively, allowed for the growth and development industries of the various worlds’ leading economies. Recently, the new and rapidly developing giants, China, and India, need to access to the similar possibilities. But nowadays we are aware that easily accessible and cheap oil supplies are dwindling and most of the people are recognizing the true cost towards the worlds environment as result of profligate use of this energy form. The “Oil” indicates that substantial portions of the worlds supplies are in countries that have no identical interest to those having industrial capabilities (Laxer, 2008). Majority of senior citizens are aware of world events like the oil embargo, the Six-Day War of 1967, and the resultant oil crisis of 1973, geopolitical struggles between the Middle East countries, Iraq, Iran, and the struggles in Latin America especially oil in Venezuela and Mexico. But Laxer’s book succeeds in analysing these events into perspective for the audience, in relation to the struggles and events in Latin America, the Middle East, United States, Europe, Russia, and now even Canada. There exists a stark contrast or comparison between the partial nationalization of PetroCanada and BP, and the major private nature or forms of US oil enterprises and their impacts on public policies, the book illustrates the plain hypocrisy characteristics of the US government in the masking and mixing for-profit oil camouflage or outfits with the national security interests (Laxer, 2008). The book highlights the anti-trust case, and explains the eventual break-up or collapse of the Standard Oil, the book makes one realize the importance or the amount or quantity of oil and its products that Texas or U.S. had produced in the previous years that it was dominating the world market; therefore audience appreciates as why Americans are still talking about the onshore or even offshore oil drilling within its soil. The audience will further understand as to why Barack Obama a Democrat and John McCain a Republican had the same open to the idea or position about drilling in Alaska, during their presidential campaign. Harold Innis vs. Laxer James Laxers views work on the energy and politics; Laxer believes that the international or the foreign-controlled oil organizations are the major beneficiaries or gainers in, and there is possibly of the impetus behind or hidden, the assertive nature for example of the Alberta government. Laxer believes that the governments proclaimed aims of the higher prices, weaker federal regulatory policies or powers, more exports, and abolition of the Petro-Canada, in addition to the earlier campaign of restoring the deductibility of the provincial’s royalties from the federal’s taxable income suggests such interpretations. Innis emphasized the Canadian desire of expanding its settlement westward towards the Hudsons Bay Company territories and the fear or distrust of the American imperialism as one of the motives by Confederation. Innis further noted his disappointment at the failure of diversions of the trade around the Great Lakes region via the St. Lawrence and later demands for the Canadian port at the Atlantic and for the transcontinental transportation system under the control of Canada (Davidson & Gismondi, 2011). Message for Canadians In many accounts of the Canadian modern developments began with noting its individual role as the source of raw materials for competing or contending European super powers, majorly France and Britain. Therefore, Canada’s location on earth was determined or recognized externally as a peripheral zone that integrated for particular purposes with the main European mainland. Later on, with the permanent European settlements, Canada achieved some degree of self-governance, hence attempted to manage or run the terms of their integration into practical international political economy. Hence, the analyzing or explanation of Canadians’ position on the international political economy is a long-standing tradition in its political economy. Recommendations There are two factors that attract or have attracted specific attention into the oil producing country such as Canada. First, Canada is or was unusually reliant on trading limited number of markets and depended on the international or foreign capital, and also from the same locations in exploiting its abundant resources. The country’s oldest strand in political economy, the ‘staples theory’ by Harold Innis, pictures Canada as imprisoned or locked into dependent interrelations; in the olden days with France at first, then later with Britain, and finally later in the U.S. For instance in 1870, 90 percent of country’s, Canada, exports was channelled to, and 89 per cent of the imports emanated from, the U.S. and Britain. In the beginning, there was increased trade with Britain but later, at around 1900, trading with the U.S. exceeded that with the UK. Countries should stop over relying on developed or industrialized individual, and consider the balance of trade and conservation of the limited resources. These will curb overexploitation of oil sources the industrialized countries. Canada used to an exporter of the natural resources and the ‘staple’ goods and the importer of manufactured and capital goods. Countries should have diversified trade in balancing their trade (Davidson & Gismondi, 2011). Attitude towards the Book It is coincidental that people are gripped with the world events concerning the increasing oil prices, both advantageously and disadvantageously, in the recent years, with the book “Oil”, the Groundwork Guide authored by James Laxer goes with these events. Since I have increased attention towards oil related events, I recommend the little book. The book, surely enough, has the great feel of the lecture series done by the professor who guides someone through brief historical backgrounds, or landmark events in the petroleum and the oil industry, and finally where it is headed. There are more quantitative data that backup some of Laxer’s claims. The book has not tried or attempted to be the encyclopaedia of all events or things that are oil; the book portrays a time capsule for the major events that led or are leading until now, and during when it was being published in 2008. Conclusion For various reasons, people are long overdue in the sucking up limited resources from the land, oil is inarguable among these resources, and oil will run out completely someday. There is the need for stepping up towards the better stewardess of the planet earth. Moving to the alternative energy forms or source(s) is painful, but the longer it is postponed, the more painful it gets. I would not wish to see my children or grandchildren bearing the blunt of having to live with the oil’s last barrel. References Davidson, D., & Gismondi, M. (2011). Challenging legitimacy at the precipice of energy calamity. New York: Springer. Laxer, J. (2008). Oil. Toronto: Groundwood Books/House of Anansi Press. Read More