Influence of the Organization of the Petroleum Exporting Countries (OPEC) 2
Economic growth of countries outside the Organization for Economic Co-operation and Development 4
Bric: Brazil, Russia, India and China 5
Trade between non-OECD countries 5
Climate Change Policy 7
The greenhouse effect 7
Strengthening the greenhouse effect 8
Global climate change 8
Oil reserves in the world 10
Influence of the Organization of the Petroleum Exporting Countries (OPEC)
OPEC long ago lost its hegemony in the world oil market but remains a major influence on prices against the formidable challenge of US oil shale. OPEC decided she decides to continue producing in abundance not to give more ground to the leading industry and reactive, which since 2014 has rapidly reduced its breakeven to a value around $ 60 a barrel.
OPEC currently draws about 38% of world crude, when 35 years ago it was 50%. And the big question of the moment is whether the cartel remains the key producer capable of directing the oil market with its decisions. OPEC, for its political, retains a decisive influence on a highly fragmented US industry (Kristopher, 2015).
The cartel has lost some leverage against the US oil market, and to a lesser extent on Russia, but still a dominant force, though not as powerful as before. The North American market does not act as a single block and is extremely fractured. There are some great companies, but there are also many small, especially in the field of oil shale.
In theory, the US could become the decisive producer. But in practice it will be very difficult, because each company will do the best for her, pumping to the maximum and not the best for the American oil industry as a whole.
In recent years the industry in the United States took advantage of the panorama of high prices prevailing until mid-2014 to develop the production of unconventional oil, extracted from the rocks by hydraulic fracturing, by injecting a mixture of water, sand, and chemicals (Bourgeault, 2016).
Currently, the United States produces more than 5 million barrels of oil this type of a total of over 9 million barrels per day, making it less dependent on imports from the rest of the world. However, its strategy, OPEC has made in recent months to slow the progression of US production.
OPEC members have recognized that oil shale is a phenomenon that will continue in the market and that the member countries have decided pragmatically face the American challenge. OPEC has maintained its official production ceiling at 30 million barrels per day, confident that demand will be strong; thanks to low prices in the current circumstances a barrel of oil between 50 and 70 dollars is expected in the long term.
Economic growth of countries outside the Organization for Economic Co-operation and Development
The aging of the developed countries and the continuing economic crisis in the Western world are unquestionable realities. The United States has been displaced from its position of number one power, and instead a country that seems to have no limits in its expansion occurs today: China. Given that one of every six people in the world is Chinese, it is not surprising that China leads the rankings of consumption, production, and trade.
But part of the case of China, which is already a reality today, we found some countries position themselves as serious candidates to lead the world in a perhaps not too distant future. Those countries in the majority are outside the OECD Countries like Brazil, India, Russia, or Indonesia. They already advancing positions in the world ranking of richest (by nominal GDP) countries, leaving behind others countries of the OECD like Italy, Spain, Sweden, Norway, and Canada (Huffington Post, 2014).
In this section, we change from the center to the periphery that is taking place at present and the past few years. New economies that are developing in the distance, across the oceans, which are gradually coming and landing on the coasts west, threatening the supremacy they had enjoyed for centuries the traditional powers.
Bric: Brazil, Russia, India and China
The BRIC acronym first appeared in 2001, the hand of Jim O'Neill, chairperson of Goldman Sachs Asset Management. This eloquent acronym refers to Brazil, Russia, India and China and at the same time means brick. The idea is simple: these four countries are presented as the building blocks of the global economy. Are the countries that will lead the economy in the coming decades? In fact, they are doing it (Giugliano, 2015).
One of the more data that demonstrate the importance of the BRICs in the global economy is its participation in foreign exchange reserves. The four countries are among the ten largest accumulators of reserves. The BRICs represent over 40% of global currency reserves. China is the largest accumulator, with about $ 2.4 trillion, enough to buy two-thirds of all companies listed on NASDAQ.
Another interesting fact is the percentage of exports. If it is astonishing that China produces 10.4% of manufacturing products, it is, even more, the fact that export almost 9% of all manufactured goods exported in the world. Likewise, Brazil exported 4.6% of all agricultural products exported in the world.
Trade between non-OECD countries
Between 2000 and 2008 trade between the Non-OECD countries increased nine times, while world trade as a whole just doubled.
For example, trade between China and Russia reached a record high in 2015, reaching some exchanges worth 90,000 million dollars. In 2015 trade between the two countries reached 80.000 million, and the goal is to reach 200,000 million in 2020. Vladimir Putin is convinced that Russia "should take the wind from the sails to propel China of their economic development".
Trade between Russia and China is based, as already noted, that Russia is one of the leading exporters of raw materials and energy. The Asian giant, meanwhile, needs that energy and feedstock have to operate all its internal structure. In exchange for gas, coal and Russian oil, China exports to its big neighbor all kinds of electronic products and high technology. Between the two countries also it is given an important arms trade.
In 2015 Russia was ranked as the ninth most important trading partner of China while China is the largest trading partner of Russia. This relationship seems giants China for Russia means more than Russia to China. Apparently, for the Asian colossus trade with the Slav country is not a matter of first order yet.
On the other hand, India and Brazil are also two major trading partners. In addition to the IBSA alliance, which ensures relations by the axis Brazil-South Africa-India, it has launched the India-Brazil Chamber of Commerce, which focuses on direct investments in enterprises of the two countries and cooperation between governments.
Trade between Brazil and India reached 15,000 billion in 2015, and although it is far from the figures of trade between China and Russia. The fact is that trade between Brazil and India is growing at an annual rate of 35%, even taking into account the global economic slowdown and the gap between the two countries. It is expected that in 2015 trade between Brazil and India reached a value of 15,000 million dollars.
According to the Consulate of India in the state of Minas Gerais, Brazil's exports to India consist mainly of: organic chemicals, diesel oil, pharmaceuticals, rubber and plastic products, capital goods, electric and electronic products, tinctures and tanning extracts, essential oils, rubber and shellac, iron and steel, textiles, tea, spices, oils and vegetable fats, polyester films, paper, glass, leather and raw agricultural products.
But Brazil's exports to India can go beyond raw materials and agricultural products. For former President Lula da Silva, Brazil can greatly help India in infrastructure; for example, take advantage of renewable energy sources and to reduce poverty.
On trade between Brazil and China, Brazilian exports to China are 85% of soybeans, iron ore, and oil, while nearly 50% of imports are electronics. That is, trade between Brazil and China is that the South American country provides raw materials and food to China in exchange for technology and electronics.
Each country tends to specialize in those activities that it is easier to produce them: Brazil produces easily iron and soybean oil, and China quickly and easily produces all kinds of electronic products. Thus, Brazil and China have become two major trading partners. In 2009 China became the main market of Brazil, above the United States.
In 2011 trade between the two countries reached a value of 80,000 million dollars. Not all advantages, since Brazil has encountered the problem that most of its exports are based only on three products: soy, iron, and oil.
Climate Change Policy
The greenhouse effect
The molecules of the greenhouse gases that occur naturally in the atmosphere (carbon dioxide, methane and nitrous oxide) have the ability to absorb and re-emit radiation of longwave from the Sun as well as the radiation reflecting surface earth into space, thereby controlling the flow of natural energy through the climate system. The previous generates a greenhouse effect, i.e., adequate heating of the Earth's surface and lower atmosphere, thereby making possible for life on earth.
Strengthening the greenhouse effect
The energy exchange between the atmosphere and the earth's surface can be altered by changes in the concentration of greenhouse gases in the atmosphere, which causes increased infrared radiation that is reflected back into the lower layers of the atmosphere (troposphere). This alteration is called greenhouse Armature (Strengthening the natural greenhouse effect). This alteration results in an increase in the average temperature of air generated by global warming, which in turn produces the phenomenon of global climate change.
Global climate change
The Intergovernmental Panel on Climate Change (IPCC) periodically generates reports with updated information on climate change scientific information. The latest report is the Third Assessment Report presented in 2001, which stated unequivocally that the world is warming, and climate is changing.
The global average surface temperature of the Earth has increased by 0.6 ° C and globally the 2000s was the warmest since 1861. Likewise, precipitations patterns have changed, with more rain in the middle and high latitudes and less rainfall in the subtropics; coverage of snow and ice has decreased by almost everyone, and sea level has risen between 10 and 20 cm.
There is evidence that human activities are primarily responsible for the increases in the concentration of greenhouse gases in the atmosphere, particularly as regards the carbon dioxide (CO2). The IPCC argues that the atmospheric concentration of CO2 has increased by about 31% between 1750 and 1999. Three-quarters of the CO2 from the combustion of fossil fuels, industrial processes (production of cement, iron, and steel), forestry and changes in land use, particularly deforestation.
One of the most important outcomes of the Summit on Environment and Development in 1992 was the approval of three legally binding international treaties, among which is the United Nations Framework Convention on Climate Change. So far, about 190 States are parties to the agreement. The previous makes the agreement is one of the agreements on sustainable development with greater political support globally (European Environment Agency, 2016).
The objective of the UNFCCC is to stabilize concentrations of greenhouse gases in the atmosphere at a level that would prevent dangerous effects on the climate system. This level should be achieved within a sufficient period:
* Allow ecosystems to adapt naturally to climate change
* Ensure that food production is not threatened
* Allow the economic development to proceed in a sustainable manner
The UNFCCC recognizes that emissions of greenhouse gases from developed countries have had a greater impact on global climate change than those in developing countries. Therefore, developed or with economies in transition, in recognition of their greater historical and current responsibility towards emissions of greenhouse gases into the atmosphere, countries have been called to lead the actions to counter the phenomenon of climate change. Their commitment involves, among others, the design of an international policy to reduce or limit emissions of greenhouse gases, the implementation of measures to mitigate climate change to consider reducing these emissions and improving the quality of their sumps. This first approach seeks to achieve emission levels of greenhouse gases they had in 1990 (The United States Environmental Protection Agency, 2014).
Oil reserves in the world
The distribution and evolution of oil reserves between 1993 and 2013 have changed drastically. There have been significant jumps in the number of reservations, especially in Venezuela, Canada, Iran, Iraq, Nigeria, Libya and the United States of America. This is accompanied the fall of reserves in Mexico and the rest of the world (Rapier, 2016).
Four countries: Venezuela, Saudi Arabia, Canada, and Iran, accumulate 53% of world oil reserves; the major producers are Saudi Arabia, Russia, China and the USA that the four are responsible for 42% of world oil production (Jaffe, 2011).
In the last ten years, major increases in oil production come from the United States of America, Russia, Saudi Arabia, Iraq, and Qatar. Major falls in production occur in Mexico, Norway, Libya and Venezuela, the latter country, has the largest oil reserves in the world, but which has seen over the past ten years his production declined.
Reference List
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Rapier, R., 2016. The Explosive Growth Of U.S. Oil Reserves. [Online] Available at: http://www.forbes.com/sites/rrapier/2016/05/23/the-explosive-growth-of-u-s-oil-reserves/#1d97ba07f526[Accessed 22 July 2016].
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