Home › Forums › If Crude Oil cease to exist, would the World Economy Collapse? › Reply To: If Crude Oil cease to exist, would the World Economy Collapse?
Oil as we know has contributed to the development of most countries in the world weather as a producing or as a consuming nation. Some oil producing countries have become so dependent on oil that other resources have become nonexistence or untapped. The world economy would not collapse if oil ceases to exist; but the economy of the oil producing states would be greatly challenged. Any country whose development or budget is solely based on oil revenue could face catastrophic financial end unless drastic measures to enforce and promote huge diversification in the midst of oil boom. We have seen the impact of a sudden drop in oil price in countries like Russia, Nigeria and in the Middle East where there is sudden devaluation of their currency to as much as 20% of the pre oil price drop. The world economy would remain because many countries in the world have other kinds of trade / economic relations not directly tied to oil.