Op-ed: The Middle East Needs to Diversify Away from an Oil Economy
Climate change is the rapid, man-made warming of the planet that has been looming as a threat as the human race began moving towards a faster economy. The Intergovernmental Panel on Climate Change (IPCC) now warns us that, if we increase above the 1.5 degrees Celsius warming range, which already produces many side effects, then life as we know it can never remain the same. Already this 1.5 degree warming threshold will produce a sea level rise of 0.4 meters, expose 14 percent of the population to extreme heat, and push about 70 to 90 percent of the remaining coral reefs to decline. Yet, we are not on the 1.5-degree threshold, we are moving towards much worse levels. Fossil fuels, often used as oil or petroleum, release gases into the atmosphere when burnt for use. These gases, most commonly carbon dioxide, are known as greenhouse gases, and they help increase the effects of climate change. In order to adapt to a more sustainable world, the Middle East needs to begin diverting itself away from an oil-dependent economy.
An oil economy is one where an often large portion of the economy is dependent on the production and sale of oil or petroleum. Since the discovery of oil in the Middle East in 1908, the region has been cursed with outbreaks, political instability, and until about halfway through the nineteenth century (for many countries), colonization. Yet, the threat of oil still looms large in today’s economy because of the increasing effects of climate change.
In one year, the world produced 242 million tonnes of plastic waste - and that was before the current pandemic with its dependence on the use of disposable items.
Already we have seen the threats of climate change begin to take action, with the Middle East being one of the regions that is most heavily affected by an increase in sandstorms and harsher weather conditions. Oil is connected to climate change in many ways, the biggest of which is that the burning of oil, a fossil fuel, releases carbon dioxide into the air. Carbon dioxide is a greenhouse gas, which means that it traps heat inside the atmosphere once it is released. While there is already some amount of carbon dioxide in the air, the man-made greenhouse effect has almost doubled the existing amount of greenhouses gases in the atmosphere. Fossil fuels are burnt in engines of cars, planes, and motorcycles. It is also burned inside factories, in the production of clothes, and even plastic, a product that is actively destroying our earth due to its slow rate of decomposition. In one year, the world produced 242 million tonnes of plastic waste - and that was before the current pandemic with its excess use of disposable items. This continues increasing the intensely harmful human effects on the climate, a climate that has been suffering from man-made practices for decades.
Yet, much of the economy of many Middle Eastern economies – particularly the Gulf countries – relies on oil to continue living at the same standard. The region produces 37 percent of the world’s oil and 18 percent of the world’s gas, as well as being home to 65 percent of the world’s proven oil reserves. In Saudi Arabia, oil accounts for more than 85 percent of exports and almost 90 percent of fiscal revenue. In Kuwait, meanwhile, 95 percent of its government income is dependent on petroleum exports. After this year’s intense drop in oil prices, it is no secret that the economies of the Middle East need to diversify away from oil, especially as the world becomes more aware of the human effects on climate change.
However, there are initiatives growing to decrease the use of plastics with the “resource revolution” on hand. People are adopting a minimalist lifestyle, pushing for more earth-friendly clothing and reading into the products they buy. Furthermore, many Middle Eastern countries are taking initiative to become more environmentally friendly. Yet, it is corporations and international trade agreements that make up most of the unfriendliest of polluters.
Our future on this planet is determined by our treatment of the planet now.
It is especially important, now more than ever, to diversify the Middle Eastern economy from oil. Our future on this planet is determined by our treatment of the planet now. If not for the immense, irrevocable damage that is occurring to the climate, then the Middle East needs to divest from oil to protect the future of their own economies. If governments and citizens globally are as aware of the effects of climate change as they should be, Middle Eastern governments need to divest to protect themselves from the incoming harm, if nothing else.
Citations and sources for further reading:
Eltony, M. Nagy. “CAN AN OIL-BASED ECONOMY BE DIVERSIFIED? A CASE STUDY OF KUWAIT.” The Journal of Energy and Development, vol. 27, no. 2, 2002, pp. 197–211. JSTOR, www.jstor.org/stable/24808708.
“ Trade and Climate Change.” WTO-UNEP Report, 2009, unep.ch/etb/pdf/UNEP WTO launch event 26 june 2009/Trade_&_Climate_Publication_2289_09_E Final.pdf.
Ispi. “Saudi Arabia's Oil Dependence: Challenges Ahead.” ISPI, 27 Sept. 2017, www.ispionline.it/it/pubblicazione/saudi-arabias-oil-dependence-challenges-ahead-14997.
July 16, 2019 Melissa Denchak. “Greenhouse Effect 101.” NRDC, 23 July 2019, www.nrdc.org/stories/greenhouse-effect-101.
Klein, Naomi. This Changes Everything: Capitalism vs. the Climate. Penguin Books, 2015.
Levin, Kelly. “8 Things You Need to Know About the IPCC 1.5˚C Report.” World Resources Institute, 10 Oct. 2018, www.wri.org/blog/2018/10/8-things-you-need-know-about-ipcc-15-c-report.
Luft, Gal. “Dependence On Middle East Energy And Its Impact On Global Security.” Energy and Environmental Challenges to Security NATO Science for Peace and Security Series C: Environmental Security, 2009, pp. 197–210., doi:10.1007/978-1-4020-9453-8_13.
McLean, John. “History of Western Civilization II.” The Discovery of Oil in the Middle East | History of Western Civilization II, courses.lumenlearning.com/suny-hccc-worldhistory2/chapter/the-discovery-of-oil-in-the-middle-east/.
PricewaterhouseCoopers. “Powering Kuwait's Economy to 2035 and Beyond.” PwC, www.pwc.com/m1/en/media-centre/articles/powering-kuwaits-economy-to-2035-and-beyond.html.
“Qatar - Overview of Economy.” Encyclopedia of the Nations, www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Qatar-OVERVIEW-OF-ECONOMY.html.
Sarant, Louise. “The Middle East: An End to Oil Dependency.” Nature News, Nature Publishing Group, 31 Aug. 2016, www.nature.com/articles/537S6a.
Sarant, Louise. “The Middle East: An End to Oil Dependency.” Nature News, Nature Publishing Group, 31 Aug. 2016, www.nature.com/articles/537S6a.
Wallace, Joe. “Oil Prices Tumble on Faltering Recovery in Demand.” The Wall Street Journal, Dow Jones & Company, 8 Sept. 2020, www.wsj.com/articles/oil-prices-drop-on-faltering-recovery-in-demand-11599562101.
“What Is Oil Economy? Definition and Meaning.” BusinessDictionary.com, www.businessdictionary.com/definition/oil-economy.html
World Bank. “WHAT A WASTE 2.0.” Tackling Increasing Plastic Waste, 2018, datatopics.worldbank.org/what-a-waste/tackling_increasing_plastic_waste.html.
