<< Chapter < Page Chapter >> Page >

The inefficacy and inequity of fossil fuel subsidies is clearly evident. Still, even by 2014, large subsidies on the domestic consumption of fossil fuels continue to be used in many nations.

Fuel subsidies in Egypt have resulted in prices of fuel that are less than the cheapest bottled water. As a result, subsidies amounted to $17 billion in 2011, or about 11% of GDP. Fuel subsidies in Nigeria were fully 20% of the Federal Budget in 2011. The government of Brazil compels the SOE PETROBRAS to cap fuel prices at levels well below their costs of production. When subsidies are reduced, by increases in fossil fuel prices, as in Brazil in 2014, the changes have tended to be minimal. In that year, Brazil increased diesel prices by 5% and gasoline by 4%.

However, in spite of past timidity in reducing subsidies, a welcome trend has been developing. Other countries that have used heavy subsidies on energy include Ghana and India (diesel fuel only). Both nations in 2014 were in the process of phasing out the subsidies. The Philippines, Malaysia, and Uganda also have sharply reduced fuel subsidies in recent years, as did Iran in 2014. The Ugandan and Indonesian programs are especially notable because they cushioned any adverse impact on income distribution by subsidies with cash payments to the poor, much like the conditional cash transfer programs used so successfully in Brazil and Mexico to promote human capital formation (see Chapter ___).

Nevertheless, worldwide, fossil fuel subsidies rose sharply from 2008 to 2012, reaching $400 billion in that year. Since then, owing partly to changes in Ghana, India, Uganda and Iran the cost of subsidies worldwide has declined slightly, amounting to about $375 billion in 2014, Source: “Price Squeeze”, The Economist , June 14, 2014. of which 83% was due to emerging nations.

Future sources of hydrocarbons for emerging nations

By 2025 with only one or two exceptions, the large state-owned oil companies in emerging nations will, in all likelihood, not find large new oil and gas reserves. State-owned firms in Russia, Mexico, Venezuela, Indonesia, and India lack the technology and often the capital to find and extract oil in shale formations or in deep onshore or offshore reservoirs. The possible exception could be Petrobas in Brazil. There, large promising new deep–water discoveries have been made. These are the famous pre-sal deposits, lying as deep as 10-12 thousand feet below the ocean floor (pre-sal means deposits hidden under very thick layers of salt). Until about 2005, oil exploration technology could not detect these deposits. This changed with advances in seismic methods of exploration. If all these deposits are ever tapped, the results will provide huge amounts of natural gas for Brazil.

In any case, furnish the best hope for finding and exploiting oil and gas deposits under the soils or seas of emerging nations. Two such technologies are presented here: horizontal drilling coupled with “fracking” and new techniques for reaching deepwater oil deposits.

Questions & Answers

where we get a research paper on Nano chemistry....?
Maira Reply
nanopartical of organic/inorganic / physical chemistry , pdf / thesis / review
Ali
what are the products of Nano chemistry?
Maira Reply
There are lots of products of nano chemistry... Like nano coatings.....carbon fiber.. And lots of others..
learn
Even nanotechnology is pretty much all about chemistry... Its the chemistry on quantum or atomic level
learn
Google
da
no nanotechnology is also a part of physics and maths it requires angle formulas and some pressure regarding concepts
Bhagvanji
hey
Giriraj
Preparation and Applications of Nanomaterial for Drug Delivery
Hafiz Reply
revolt
da
Application of nanotechnology in medicine
what is variations in raman spectra for nanomaterials
Jyoti Reply
I only see partial conversation and what's the question here!
Crow Reply
what about nanotechnology for water purification
RAW Reply
please someone correct me if I'm wrong but I think one can use nanoparticles, specially silver nanoparticles for water treatment.
Damian
yes that's correct
Professor
I think
Professor
Nasa has use it in the 60's, copper as water purification in the moon travel.
Alexandre
nanocopper obvius
Alexandre
what is the stm
Brian Reply
is there industrial application of fullrenes. What is the method to prepare fullrene on large scale.?
Rafiq
industrial application...? mmm I think on the medical side as drug carrier, but you should go deeper on your research, I may be wrong
Damian
How we are making nano material?
LITNING Reply
what is a peer
LITNING Reply
What is meant by 'nano scale'?
LITNING Reply
What is STMs full form?
LITNING
scanning tunneling microscope
Sahil
how nano science is used for hydrophobicity
Santosh
Do u think that Graphene and Fullrene fiber can be used to make Air Plane body structure the lightest and strongest. Rafiq
Rafiq
what is differents between GO and RGO?
Mahi
what is simplest way to understand the applications of nano robots used to detect the cancer affected cell of human body.? How this robot is carried to required site of body cell.? what will be the carrier material and how can be detected that correct delivery of drug is done Rafiq
Rafiq
if virus is killing to make ARTIFICIAL DNA OF GRAPHENE FOR KILLED THE VIRUS .THIS IS OUR ASSUMPTION
Anam
analytical skills graphene is prepared to kill any type viruses .
Anam
Any one who tell me about Preparation and application of Nanomaterial for drug Delivery
Hafiz
what is Nano technology ?
Bob Reply
write examples of Nano molecule?
Bob
The nanotechnology is as new science, to scale nanometric
brayan
nanotechnology is the study, desing, synthesis, manipulation and application of materials and functional systems through control of matter at nanoscale
Damian
Is there any normative that regulates the use of silver nanoparticles?
Damian Reply
what king of growth are you checking .?
Renato
What fields keep nano created devices from performing or assimulating ? Magnetic fields ? Are do they assimilate ?
Stoney Reply
why we need to study biomolecules, molecular biology in nanotechnology?
Adin Reply
?
Kyle
yes I'm doing my masters in nanotechnology, we are being studying all these domains as well..
Adin
why?
Adin
what school?
Kyle
biomolecules are e building blocks of every organics and inorganic materials.
Joe
how did you get the value of 2000N.What calculations are needed to arrive at it
Smarajit Reply
Privacy Information Security Software Version 1.1a
Good
Got questions? Join the online conversation and get instant answers!
Jobilize.com Reply

Get the best Algebra and trigonometry course in your pocket!





Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
Google Play and the Google Play logo are trademarks of Google Inc.

Notification Switch

Would you like to follow the 'Economic development for the 21st century' conversation and receive update notifications?

Ask