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Discuss the multi-dimensional implications of uneven distribution of mineral oil in the world. UPSC IAS Mains 2021 General Studies (Paper – 1)

Petroleum is unevenly distributed around the planet. The Middle East contains slightly less than half of the world’s proven reserves (including Iran but not North Africa). Following the Middle East are Canada and the United States, Latin America, Africa, and the former Soviet Union region, which includes Russia, Kazakhstan, and other countries.

The immense strategic importance of mineral oil and its lop-sided distribution across the globe have many multi-dimensional implications:

  • Political: Many historical and present-day conflicts involve nations trying to control resource-rich territories. For example, the desire for diamond and oil resources has been the root of many armed conflicts in Africa. USA’s interference in the geopolitics of West Asia is also one of the reasons for uneven distribution of oil minerals.
  • Employment & Migration: Availability of Oil reserves leads to more job opportunities in the Middle east. That is the reason why India has a large diaspora in the middle east.
  • Balance of Trade: The un-even distribution of the mineral oil resources affects the balance of trade between the importing and the exporting countries. This in turn affects the Foreign-exchange reserves of the country.
  • Growth: Un-even distribution of mineral oil also has led to un-even growth across the globe. Rise in import prices directly hamper the capabilities of the government to spend on welfare objectives.
  • Energy Security:  The un-even distribution of the mineral energy resource has led to high degree of energy insecurity in the oil deficient countries. It also, directly affects their strategic autonomy.
  • Diplomaticleverage: The lop- sided distribution of the vital mineral oil resource is a vital factor in leveraging its availability for diplomatic gains. For example, India’s major dependence on Middle East for oil, provides it with a diplomatic bargain over India.
  • Economic implications: Uneven distribution of the mineral oil across the world, leads to economic consequences like inflation, for the importing country. For example, India is susceptible to global shocks in oil prices.
  • Regional conflict: As the mineral oil resource is strategic in nature, its uneven distribution leads to great power conflict over the control of the region. For example, disputes in oil rich regions of middle East.  

As the uneven distribution of the mineral oil resources leads to various implications ranging from economic to energy security. This highlights the need for India to diversify its energy basket both in terms of content and geography.







POSTED ON 21-07-2023 BY ADMIN
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