The negative effects of the oil spill in the Macondo field, which lies in the western part of the Gulf of Mexico, have started to take many adverse dimensions. There is, first of all, the pollution caused by the spill in the Gulf's sea water and in the southern coast of the United States, in particular the damage to the birds, amphibians, and the fish and shrimp farms, which are important economic sectors in that region, relied upon by thousands of people for their livelihoods. However, the spill has a much wider impact than coastal pollution or damage to the wildlife, as the incident is being exploited to wage a campaign against the oil industry, with a view to push forward alternative energies to replace oil. As is well known, there are many parties that have been trying for some time now to reduce dependence on oil. The slogans currently being invoked are likening the Macondo incident to the attacks of September 11 on New York and Washington, placing them both at the same level of perilousness. Subsequently, there are calls for the adoption of an aggressive strategy against oil. Furthermore, there are some who are comparing the danger of oil to the danger of cigarettes, and are consequently calling for reducing oil ‘addiction', and for passing new legislation that limit the consumption of oil, as is the case with tobacco. In other words, the opponents of oil are trying to exploit this incident to push their agenda forward to the top of U.S priorities, at a time they deem suitable to achieve their objectives, especially given the damage caused so far. There are also the devastating effects incurred by BP, one of the giant oil corporations established nearly a century ago. Even if BP managed to overcome the massive financial liabilities that must be paid, its reputation is at stake, particularly when the party that led the campaign against BP this time is not just the media, but the American President himself and the congressional committees. No doubt, the international oil industry will in turn suffer from this massive oil spill. The Middle East, by virtue of the importance of the oil sector there, was also affected. According to reports, a dispute erupted between the Egyptian ministers of oil and tourism, as a result of limited oil pollution near the important Egyptian touristic sites in the Gulf of Suez. The causes of this pollution are not yet known: is it the result of an oil spill from one of the rigs in the Gulf of Suez, or is it the result of fuel dumping by ships and tankers in the sea? For Egypt, both tourism and petroleum are mainstays of the national economy, and therefore, the level of attention given to them both is the same. This problem is not new in Egypt. Since the 1980s, such problem has emerged often, albeit in a limited manner. However, the problem now is much more significant than in previous years, especially following the extraordinary growth achieved by the Egyptian tourism sector in recent years. The lesson that will be inferred by the international oil industry following the oil spill in the U.S will engender wariness from drilling in deep waters. However, this is not expected to fully halt, while it is quite possible that the costs of drilling there will become more momentous. Recall that BP itself announced last week that it started drilling in Libyan deep waters, pursuant to an old deal between BP and the Libyan oil authorities. What are the possible practical results of this campaign against the oil industry then? The International Energy Agency issued its annual report on energy technologies for 2010, in which the Agency Executive Director Nobuo Tanaka mentioned that the agency can see the first signs of a technological revolution in the energy field worldwide. However, Tanaka, at the same time, stressed the need to work persistently and consistently to achieve the desired objectives over the long term to reduce greenhouse gas emissions and support energy security and economic development. Among the things that led the agency to arrive at these conclusions, is the large increase in investments into alternative energy. For instance, the value of these investments in solar power and wind power alone amounted to 112 billion dollars in 2008, and then in 2009, the industry managed to maintain the same level of investments. The report also indicated that investments into alternative energies have increased globally by one third, between 2005 and 2008. As is known, the annual investment in oil exploration worldwide is around 100 to 200 billion dollars per year. The report also praised the increase in the production of hybrid and electric cars from major car companies, and concluded that the continued production of this number of cars will make it possible to produce about five million units of this type during the next 10 years. These projections clearly indicate that the oil industry is facing a major challenge that is unprecedented since petroleum products were first used more than a century ago. This time, such challenges not only result from the reduction of oil consumption, but also through the advancement of commercial alternatives in the market that compensate for the need for oil. As is known, the single most important use of petroleum at present is in the transportation sector. It will not be easy to replace more than half a billion internal combustion cars and vehicles that currently operate on the world's roads. In case hybrid and electric cars are gradually introduced to replace them, this will not happen overnight, and the transitional period is predicted to last decades, and well into the middle of this century. *. Mr. Khadduri is an energy expert
