In many circumstances, individuals equate cost with a monetary value. While this is often the case, the financial aspect is not all that there is to lose. In the case of the oil industry, money and financial security, the environment and, even peace itself, lay in the path of the tumult that is the oil industry. The costs of oil go beyond the financial to the political and environmental, aspects that in one way or another touch the lives of every human being on the planet.

The Financial

The price of gasoline these days seems out of control, especially for the citizens of the United States who are not used to higher gas prices. The prices are determined in part by a simple law of supply and demand. Currently, the demand is high and shows no sign of abating. Current oil production is controlled by the Organization of Petroleum Exporting Countries, or simply, OPEC. Thus, OPEC indirectly controls the price of oil and the price of gasoline follows suit. The effect on the economy is clear. Though it may not be the immediate catalyst for another Great Depression, the world economy has yet to fully respond.

The Environmental

Due to the very nature of oil resources, the environment is invariably affected. The first way in which the environment is effected by the black gold is through both the drilling and the transportation processes. The chemicals used in the drilling can be harmful to the environment, and as the Exxon Valdez disaster so lucidly portrayed, transportation can be equally as devastating to the environment. In addition to this, the actual burning of oil as a fuel creates havoc in the environment, contributing to already controversial problems such as global warming and acid rain. Lastly, the remaining virgin forests are at risk as increasing pressure is applied by oil industry leaders pushing for new drilling in sensitive and once-protected regions.

The Political

Finally, there is the political realm to consider. There is no doubt that oil is a key factor in the strategy of world peace. Though this may sound like an over-dramatization, one cannot look at the current war in Iraq as well as the Gulf War and not see the connection to oil. Remember the flaming oil rigs? They were a burning testament to how the fight for control over oil has affected the global international dynamic.