ABSTRACT

The future demand for energy leaves the world for a number of years yet as dependent on Organization of Petroleum Exporting Countries (OPECs) oil as it has been in the recent past, in spite of energy conservation measures and an evolving energy system. In a sense, the OPEC investments have played an important role in financing the United States deficit, thereby contributing to financial stability in a highly volatile world. The OPEC investors have paid the price in the shape of continous depreciation of their assets which to them means depletion of the major wealth on which they heavily rely for their future development. A natural outcome was the recession that was experienced by the US economy as well as certain Western European economies that have strong economic linkages with that of the United States. This recession has induced cutbacks in consumers' spending and a worldwide curtailment in industrial production.