The New Nation - Internet Edition

SAUDI Arabia has decided to increase production of oil to the extent of half a million barrels per day sounds good. The added output will increase the daily production of oil to the level of ten million barrels a day in the Kingdom. The same quantity of oil may meet the increased demand in the world market and help reduce the economic effects of higher price of oil in different countries. The uptrend in price of oil has already affected development activities in different countries. It may be controlled if other oil rich countries also follow the move of Saudi Arabia to increase the production of oil. The immediate demand of oil in the global market has to be met with increase in its supply.

It is worth noting that major users of oil in the world have reportedly opted for alternative fuels. If the move is materialised, with necessary steps by concerned quarters, then oil rich countries may face problems. The overall growth of their economies may be thwarted and the goals and expectations of their people may remain unfulfilled. Beyond that, the growth of economies in different countries of the world may turn uncertain. The move of the Saudi authorities to increase oil production is commendable.

It is worth noting that natural bounties including oil, gas, coal and even water resources have to be rationally used. They are used for meeting immediate needs of the countries concerned. Some natural bounties in different countries have already been over utilised by the governments and the business and industrial communities have tried to meet demands of the people of the present generation. Future generations of people will face problems of different dimensions in all countries, if the natural bounties, including oil, are not brought under long term plans.