The culprit has the gold...

IIPM PUBLICATION

Close to 95% of the world’s cars run on fossil fuels and until oil is not completely depleted from the face of the earth, this situation is quite unlikely to change. The obsessive dependence on Black Gold has had devastating effects on the world economy. A commodity, which has the power to control the global economy, has had far-reaching effects on how business is conducted throughout the world spanning across all sectors. However, the forces of demand & supply in this space have created widespread price fluctuations & collateral effects. Oil prices moved from lows of $45 per barrel to a peak of $78 per barrel in 2006 – the highest price ever. The end-consumer is the worst affected by this volatility. Analysts believe that more practical solutions like ethanol supplementation will help reduce the oil-induced phobia. Moreover, since oil will continue to be a primary source for cars, fresh replenishments are expected to be done from the yet unexplored oil reserves in Alaska (USA) and Siberia (Russia). But still, it is quite evident that the world will need some saviour fuel very soon.

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative