Countries like Australia, Germany, France, Japan, New Zealand are saying “we will pay you a premium for oil OR will swap you gas and other goods”.
That’s all fine and dandy for rich countries, what about poor countries like Nepal, Syria, Myanmar, Bangladesh?
What’s going to happen to those countries that can’t pay a premium for oil?
byu/VastOption8705 inoil
Posted by VastOption8705
15 Comments
Womp womp
They get starved of oil. That’s the tragedy, the worlds poor pay the highest price and the 20% of global demand destruction will be highly concentrated in developing countries
**Every man for himself. good luck**
Australia will be toast anyway. We don’t make anything here, so if production and factories throttle back in Asia, we’re in strife also.
The human cost of Trumps war will be something like we’ve never experienced.
The countries that can’t outbid others will have their ecomonies shut down. There will also be wide spread famine. Wide spread deaths.
Famine and a dead ecomony will lead to political instability, possibly civil wars or infighting and millions of internally displaced people likely leading to mass migration to other areas. That could overwhelm neighbouring countries and cause a further cascade of political instability.
We saw in Cambodia what happens when you don’t use synthetic fertilizer
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India will be providing Nepal, Bangladesh with diesel exports in current crisis. If not India, these countries would get help from China including Myanmar.
I think one Chinese oil tanker, He Rong Hai, passed through Hormuz was heading towards Myanmar.
They decrease their use of oil and rely on other things. Like coal. Or solar and batteries. Mostly decrease usage.
Time for a coalition of the willing to go against the US.
That’s how the higher price works when supply is limited.
Eventually someone cannot afford the price and doesn’t get the oil.
Thank you US Army Hooligans
Well they’ll find ways to cope, although they’ll probably become increasingly unstable, socially, politically, etc.
The same thing happened during and after the 1973 oil crisis.
But this probably won’t be as bad. We have much more alternative fuels in the mix, electric cars are a thing, solar and wind are being built everywhere at a higher pace than ever before, etc.
Worst case actually involves famines due to fertilizer and diesel shortages. Europe will be dealing with another migrant crisis.
Australia can pay for oil via LNG and food – which is exactly what we have done.
honest and maybe atupid question (chat gpt says not all countries have oil in soil) – why don t all countries have oil underneath the soil? I tought we all have oil but need to drill deeper