Subject: Physical Geography

The uneven distribution of mineral oil across the globe has created a complex web of economic, geopolitical, and environmental implications that shape international relations and development trajectories.

Economic Implications

• Price Volatility: The concentration of 68% of global oil reserves in just 10 countries leads to market instability and price fluctuations affecting global economic growth.
• Balance of Payments: Oil-importing nations face significant economic pressure, while exporters like Venezuela (303.8B barrels) and Saudi Arabia (297.5B barrels) benefit from improved trade balances.
• Currency Impact: Heavy dependence on oil imports affects exchange rates and foreign reserves of importing nations, leading to economic vulnerabilities.

Geopolitical Dimensions

• Strategic Alliances: Formation of organizations like OPEC+ to control oil production and prices, influencing global power dynamics.
• Regional Conflicts: Oil-rich regions face increased tensions, as evidenced by the Russia-Ukraine war and Middle East conflicts during 2023-25.
• Energy Security: Nations develop strategic petroleum reserves and diversify supply sources to ensure energy security.

Environmental and Technological Impact

• Renewable Energy Push: Countries like India are accelerating renewable adoption, adding 18.48 GW capacity in FY 2023-24.
• Green Investments: Global shift towards sustainable energy, with India attracting $19.98 billion FDI in renewables (2020-24).
• Climate Change: Uneven oil distribution influences global carbon emissions patterns and climate action commitments.

Developmental Implications

• Industrial Growth: Oil-rich nations experience rapid industrialization and infrastructure development.
• Resource Curse: Some oil-rich countries face the paradox of plenty, leading to economic mismanagement and social inequality.
• Technology Transfer: Need for oil access drives international cooperation and technological innovations in extraction and alternatives.

The uneven distribution of mineral oil continues to shape global dynamics, pushing nations toward a delicate balance between energy security and sustainable development. The transition to renewable energy, exemplified by India's 170 GW renewable capacity target by March 2025, represents a strategic response to these challenges, highlighting the need for collaborative international efforts in energy transformation.