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Mineral oil is unevenly distributed across the world. The immense strategic importance of mineral oil and its lop-sided distribution across the globe have many multi-dimensional implications such as:
- Economic implications: Uneven distribution of the mineral oil across the world, leads to economic consequences like inflation, for the importing country. For example, India is susceptible to global shocks in oil prices.
- Regional conflict: As the mineral oil resource is strategic in nature, its uneven distribution leads to great power conflict over the control of the region. For example, disputes in oil rich regions of middle East.
- Energy Security: The un-even distribution of the mineral energy resource has led to high degree of energy insecurity in the oil deficient countries. It also, directly affects their strategic autonomy.
- Diplomatic leverage : The lop- sided distribution of the vital mineral oil resource is a vital factor in leveraging its availability for diplomatic gains. For example, India’s major dependence on Middle East for oil, provides it with a diplomatic bargain over India.
- Balance of Trade: The un-even distribution of the mineral oil resources affects the balance of trade between the importing and the exporting countries. This in turn affects the Foreign-exchange reserves of the country.
- Growth: Un-even distribution of mineral oil also has led to un-even growth across the globe. Rise in import prices directly hamper the capabilities of the government to spend on welfare objectives.
- Vested interest in oil economy has potential to delay transition to clean energy and decarbonizing the world industry.
Thus, the un-even distribution of the mineral oil resources leads to various implications ranging from economic to energy security and adoption of renewable energy sources. This highlights the need for India to diversify its energy basket both in terms of content and geography.
