Fossil fuels Exporting Countries

The Brazilian economy has been severely damaged by continuous increases in crude oil prices. Domestic production of fossil fuels is small, and this year oil imports will demand 40% of all export revenues. There has been a chronic deficit in the balance of payments and monies spent are not recycled within the country. Also, other countries that traditionally import Brazilian goods tend to adopt protectionist trade policies to balance their own external trade. 

The fixed percentages of natural gas and coal inputs would in practice be modified for countries with resources primarily of one type. For example, Norway and Saudi Arabia would increase their use of natural gas in order not to have to import coal. For covmtries able to cover their own electricity requirements with existing hydro, e.g., Canada and Norway, the scenario construction does not initially take into account export options, and the hydro input in Fig. 5.33 is therefore less than the potential production (by 177 GW). This additional capacity will in reahty be used for export of electric power to neighbouring covmtries and thus will slightly diminish the use of fossil fuels, on a global level. 

We face three major problems as a consequence of our dependence on fossil fuels for energy. First, fossil fuels are a nonrenewable resource and the world s supply is continually decreasing. Second, a group of Middle Eastern and South American countries controls a large portion of the world s supply of petroleum. These countries have formed a cartel known as the Organization of Petroleum Exporting Countries OPEC), which controls both the supply and the price of crude oil. Political instability in any OPEC country can seriously affect the world oil supply. Third, burning fossil fuels increases the concentrations of CO2 and SO2 in the atmosphere. Scientists have established experimentally that... 

The Soviet nuclear programme is necessary because of the country s economic and fossil fuel situation. Over half of the new installed capacity is likely to be nuclear, and the aim must be to release as much oil and gas for hard currency exports as can be achieved. Probably, bearing in mind the location of fossil fuel supplies, the total capital cost of nuclear plant, particularly the relatively low technology RBMK, compares favonrably with coal-fired installations. 

Industry and Business. Private companies control the search for metals, fossil fuels, and industrial minerals. The worldwide supply and demand of many of these commodities controls the prices. Many metals are easy to transport, and many are in high demand, so the prices for them continue to increase. Large groups that control the supply may dictate the prices of some commodities such as diamonds and oil. The Organization of Petroleum Exporting Countries (OPEC) is a cartel that controls the amount of oil exported from it members and hence its price. The DeBeers Group controls much of the supply of diamonds and therefore their price. 

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