Just a couple of weeks ago, I was browsing the papers when a certain headline caught my attention. In an instant, my face turned red in anger. World oil prices hit the $100 per barrel mark, the headlines screamed loudly. I could only shake my head in frustration and disappointment.
Those who understand the implications of this bit of news know how damaging these developments can be. For oil-dependent economies like the country where I come from, the news is a legit cause of concern. With the rising cost of oil, transportation costs would surely skyrocket, and in turn, prices of consumer goods are expected to increase. These occurrences naturally mean more reasons to frown for consumers like me.
As a backgrounder, the most recent oil price surge was triggered by hostility in Nigeria, Algeria and Pakistan, as well as the drop in the value of the US dollar. It was certainly not the way everyone wanted to welcome 2008, as the oil price hike happened just two days after the New Year was ushered in. In past years, violence in Middle East nations as well as Russia, Venezuela, and Mexico, where a great bulk of oil is produced, also caused oil price hikes. And like any other commodity, demand and supply is also tagged as the culprit of rising oil prices. Thus, during instances when global production is at a minimum, expect oil prices to increase quickly as one can say, “A-B-C.”
What’s worse is that experts are in unison about the unlikelihood of oil price hikes slowing down. Most of them agree that the worst has yet to come, since the possibility of depletion of oil reserves is high. Consider the many years that the world has relied on its oil reserves, and no one can deny that those years will ultimately catch up on us. Increasing demand for energy coupled with an increasing population base is a mix that doesn’t augur well for the global community.
These events are bound to affect every one of us. Since the global economy has relied so much on energy to produce and transport goods and services, the additional costs brought about by rising oil prices will naturally be passed to consumers. That means that I have to pay more to enjoy my favorite soda, or eat my favorite snack. Rising oil prices will also mean that I have to shell out more bucks to be able to go farther with my car.
Of course, there should be a solution to all of these miseries. It doesn’t take a genius to figure out that somewhere along the way; the world needs to harness fresh sources of energy. Alternative sources such as sunlight, rain, wind, geothermal heat, and tides provide energy often tagged as new and renewable, since they are replenished. And while new and renewable energy has been criticized for being unreliable, common sense dictates that world leaders have to put all stops to make sure that they are fully harnessed in the near future. Simply because we should never allow ourselves to be subjected to pain and distress brought about by these oil price hikes.

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