Dairy farmers get a price for milk that is held down by oligopsony, agreement between a small number of buyers for their product. For stability of supply, the price has to recompense investment. Oil exporting countries get a price for oil that is held down by oligopsony, agreement between major oil importing companies. For stability of supply, the price has to recompense investment and also anticipate the depletion of petroleum resources with oil supply running out. For example, a higher price could be demanded to fund diversification into agriculture. Oil has varied per barrel between $20 in 1997, $160 in 2008, and $60 today.
Is the ethical position of companies buying oil different from supermarkets buying milk? Who will provide for oil exporters to transition away from oil when it runs out?
Novel ‘$hort of Love’ is about love set in the international oil industry, with some relationship and oil supply dilemmas considered in a satirical commodity framework.
African children queue for food
Exploration drilling for oil offshore in the Great Australian Bight has been opposed by activists. Australia imports 80% of its crude oil from SE Asia (49%), Africa (24%), Middle East (17%) and others (10%). Import of oil from developing countries depletes their resources and can destabilise government and development. The fiction novel $hort of Love by Martin Knox illustrates horrific ethical dilemmas of importing oil from a developing country suffering famine. After you read this story, you are likely to reduce your petrol consumption or alternatively want drilling in The Bight.
Reviews of the book are here: http://www.martinknox.wordpress.com