Improved oil prices are seemingly causing a debate about the extent of the black gold's role in lifting the world economy from the abyss of contraction, or in negatively affecting the outcome of economic stimulus and recovery plans. This is because while oil prices are improving and attaining the target levels for oil producing and exporting countries, they are at the same time instigating a conflict between two points of view: the first sees this hike in oil prices to be curbing the global economic growth, while the second sees it as a security blanket for emerging oil countries that enhances their economic strategies, and that aides them in completing their infrastructure projects, as well as their social welfare and healthcare services. Also, these improved oil prices would enable these emerging oil countries to invest in diverse energy projects, and contribute thus to global growth. The fact of the matter in this regard is that this fossil extract is no longer a simple commodity that serves an ordinary purpose, but has rather become the backbone of the global economy, and a major component of various industries producing what is known as petrochemicals. This is in addition to oil being a raw material for many secondary, cosmetic and pharmaceutical industries, not to mention that oil ensures the continuity of the large global transportation services, whether by air, land and sea, as well as contributing to a broader commercial exchange, and making it possible for agriculture, industry, lighting, heating and household appliances to continue running. In short, oil is a part of most global economic activities, and amounts to 36 percent the world's consumption of about 12 trillion tons of oil equivalent (toe) per year (with 24 percent for gas, 28 percent for coal, and 12 percent for electricity.) Meanwhile, the bill of worldwide oil exports was estimated to be 3 trillion dollars in 2008 (at the average price of 94 dollars for the barrel), which alone represents more than 20 percent of the total value of global commodities trading. Nonetheless, this boosts the global economy and the growth of its special industries, given the needs of the oil producing countries for consumer, durable and high-end goods, in addition to infrastructural equipment, and equipment related to the investments in oil and gas fields, energy, and the machinery for oil exploration and drilling. Also, and while the share of the European Union of this global oil bill amounts to 25 percent, with the United States' being 22 percent, Japan 10 percent and China 9 percent, these blocs and countries earn an added value over oil, that fuels their economies, and that ensures the flow of additional revenues for their public treasuries, all as a result of the taxes imposed on oil and its derivatives. This is all while the oil refining, storage and distribution industries form a major industrial sector in these countries. Meanwhile, the Organization for Economic Cooperation and Development (OECD) estimates that each increase of 10 dollars for the barrel of oil sets the rate of global growth back by 0.1 percent. This would ultimately lead the OECD member countries to reduce their oil consumption. In reality, the thirty member countries of the Organization constitute 15 percent of the world's population, while they generate about 51 percent of the world's GDP. Between 2000 and 2006, these countries saw an annual growth rate of 2.6 percent while their demand for energy grew annually by 0.8 percent only. Conversely, their oil consumption levels remain high; in the United States, for instance, individuals consume around 8 tons of oil equivalent per year, while 4 tons are consumed on average by European and Japanese individuals. On the other hand, growth in the countries of the South remains strongly linked to the performance of energy; during the same period mentioned above, these countries' energy demand grew by 4.8 percent annually, which fed an economic growth rate of 6.4 percent. This is in spite of the fact that individual energy consumption there are low, and stand at 0.3 tons in Africa, 0.4 in India, and 1.3 in China. The peoples of these countries will eventually rely on oil, however, to achieve a better quality of life, owing to the use of more machinery and equipment powered by oil derivatives. If the world is betting on rising oil prices to reduce carbon dioxide emissions (to which oil contributes 36 billion tons out of 50 billion tons annually), and protect the environment, then this is a losing bet, given the dire need for oil in the global economy. By comparison, the world is actually heading towards a more severe pollutant than oil, i.e. coal, despite the latter's higher prices. For instance, coal consumption increased by 726 million tons of oil equivalent, including 593 million for China and India, while global demand amounted to 1570 million tons out of the produced 6500 million tons. This is while noting that the price per ton of coal has doubled 4 times in five years, reaching around 130 dollars for the ton, while the price of a ton of coke was estimated at 300 to 350 dollars in 2008, from 98 dollars in 2007 (although the use of coal has a negative impact on climate change.) This comes as a consequence of these countries seeking to achieve a kind of independence in their energy needs by using national resources, all in order to lessen the severity of energy bills - usually made in foreign currencies. As for the renewable energy, it does not constitute more than 14 percent, while solar energy is only at 0.1 percent. Therefore, improved global oil prices towards acceptable and fair levels would ultimately stimulate and support global economic growth, despite these prices' inherent capacity to contribute to higher rates of inflation and, consequently, the need to compensate wages for their inflation-related losses.
