Sunday, March 30, 2008

Exposure

Saturday, March 15, 2008

Indonesia: Queuing for oil in an oil-rich country


The following is an extract from 'Indonesia: Queuing for oil in an oil-rich country' by Katarina Pujiastuti, 14 March 2008.

"Recently there have been 200 meter queues for petrol in Balikpapan, in East Kalimantan province - a place known as the "city of oil". In Cimahi, West Java, every day 500 people in line up for petroleum from early morning to afternoon. The same situation can be found in various cities of Indonesia.

"Queues for petrol, massive electricity black-outs, industry fuel shortages are current ironic phenomenon in this oil rich country.

"According to a report issued on January 2008 by Energy Information Administration, Indonesia's oil production is 1.1 million barrel a day. Indonesia was also known as a first-rank natural gas producer in Asia Pacific. Unfortunately more than 90% of energy industries are controlled by foreign corporations. Indonesia only owns 20 out of 137 companies of oil and gas.

"ExxonMobil, the World biggest oil corporation gained $40.6 billion profit in year 2007 equal to the Gross domestic Product of 120 country."


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In the last year, food prices have gone up by 16% in Indonesia. - World's poor hit by rocketing food prices...

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The Iraq war hurts everyone.

The Iraq war has cost America trillions of dollars and has cost the rest of the world additional trillions of dollars.

A Guardian article on the cost of the Iraq War (Aida Edemariam talks to author Joseph Stiglitz about the true cost ...) makes the following points:

Why has the rest of the world lost trillions?

1. A study by the International Energy Agency that looked at a sample of 13 African countries found that rising oil prices have "had the effect of lowering the average income by 3% - more than offsetting all of the increase in foreign aid that they had received in recent years, and setting the stage for another crisis in these countries".

2. The weak economic position of the USA, resulting from the Iraq war, is hurting the global economy.

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