The value of oil in 2023: profit and international conflicts

Despite oil represents an incredibly valuable resource, its extraction and use have fueled international conflicts

by Lorenzo Ciotti
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The value of oil in 2023: profit and international conflicts
© David McNew / Staff Getty Images News

Oil has always played a fundamentally important role in the global economy, influencing not only the energy market but also the political dynamics between countries. In 2023, the oil sector continues to be a strategic sector full of profit opportunities for nations that possess significant reserves.

However, while oil represents an incredibly valuable resource, its extraction and use have fueled international conflicts and geopolitical tensions. In this article we will delve into the value of oil in 2023, the ways of earning through its extraction and the reasons why the control of oil reserves often becomes a cause of conflict between countries.

Despite the growth of the renewable energy market, oil continues to be a primary source of energy in 2023. The increase in energy demand from emerging countries, together with the continued consumption of developed economies, has kept oil at the center of the attention globally.

This translates into high economic value for countries that possess oil reserves, allowing them to exploit these resources for their own economic development and nation's growth. Oil extraction is an extremely profitable sector, offering numerous revenue opportunities for producing countries.

This is achieved through different methodologies, such as granting extraction rights to international oil companies, the creation of state oil companies or through partnerships with other countries. Furthermore, oil extraction requires a vast infrastructure system, providing additional profit opportunities for businesses offering related services such as drilling, transporting and refining crude oil.

Unfortunately, oil wealth often also translates into geopolitical tensions and conflicts between countries. Control of oil reserves can become a determining factor in international relations, with a significant impact on the political and strategic positions of countries.

Conflicts for the control of oil reserves can concern both producing and consuming countries, creating complex balances of power and purely economic interests. Furthermore, financial proceeds obtained from the sale of oil can be used to support separatist movements, finance armies and fuel political corruption, thus increasing tensions and instabilities between nations.

Oil continues to play a major role in the global economy in 2023, offering significant revenue opportunities for nations with oil reserves. However, it is crucial to understand that control of oil resources can also cause international conflicts and geopolitical tensions.

However, the world is in a period of energy transition, with a growing interest in renewable sources. Therefore, it is essential for oil-producing countries to adopt sustainable economic policies and diversify their economy to ensure a stable and prosperous future, not only based on oil resources.

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