RESEARCH ESSAY

Research essay



Research essay

The most populous Arab country in the world, about 85 million people is in an irreversible political and social dynamics. Along with some Middle Eastern countries, Egypt is undergoing a process that has been compared to what happened in 1989 in communist countries and the subsequent disintegration of the Soviet Union. That is, the population takes to the streets to demand democratic historical deficit his government and press for real changes can translate, as the output of their own president. For several days, the Egyptian government is in jeopardy and the economic situation of the country is paralyzed. Their main source of foreign exchange earnings, tourism has collapsed and there is very difficult for international tourist flows to regain their previous levels the current crisis, even if a solution is reached relatively peaceful. For the international community, this crisis represents a significant risk for the geopolitical importance of this nation. While Egypt is not a key player among the oil producing countries (production is only 0.9% of world production), yes it is about the passage and transport of oil producing countries in the Middle East to countries in Europe and the U.S. (Lord Kinross, 1969)

The Egyptian government has the legal jurisdiction and operation of the Suez Canal and which allows the passage of cargo ships of all types from the Red Sea to the Mediterranean Sea. The pass is open to vessels of any country and its temporary or permanent closure would cause serious problems in logistics processes worldwide supply. Pass through the canal each year about 16,000 vessels with an estimated load of 14% of world shipping and 30% of oil supply. This could cause the price of oil start a rally like we have been observing in recent days when the future of U.S. crude closed at their highest level (100.95 dollars for a barrel of Brent crude) in the past 27 months. The strong winter is living in the U.S. and some European countries, along with the Egyptian crisis, undoubtedly will impact the price of oil. The outlook for the global economy in the 2011 may be affected and the inputs that will surely require the companies will suffer an increase in their prices. The scenario may be exacerbated in the case given that the dynamics of protests that we saw last month in Tunisia and Egypt currently, can be given in other countries in the region are indeed important players, for example Libya or Saudi Arabia-in world oil production. (Neil Macfarquhar, 2003)

For our country, the crisis in Egypt and the rise in oil prices have a differential impact. On the one hand, with rising oil prices, Premix revenues rise (remember that the Revenue Budget approved for 2011 will set the price of a barrel of oil at 65.4 dollars) and is very likely to have oil surpluses on which should be taken under the microscope to avoid committing to elections in 2011 and ...