The oil butterfly!
soon it may be the European and Chinese economy that will be back on track.
The interesting point to know is that there doesn’t need to be a big change to cause a rise in the price of crude oil. A small shift in a national market can create ripples that will affect the global market. This theory is commonly called the butterfly effect. Edward Lorentz the inventor of the theory states that a butterfly flapping its wings in China can create storm systems in places as far away as the United States, African or Europe! If a butterfly can do that can a change in the market of one country or nation change the global crude oil price? In global economics anything is possible!
Could the above be true or is it just wishful thinking? It might just as well be the case that crude oil prices continue to fall and stay down instead of go up. What can Kurdistan and other oil based economies do then? If one looks to the example of Saudi Arabia, which is producing at a rate of over nine million barrels a day, making it bound to deplete it’s oil reserves in two decades. It has already started alternative means of generating national revenue. Areas Saudi Arabia has been investing in are the food industry, petrochemicals, and solar power generation to name just a few.
In order for Kurdistan and Iraq to have a sustainable economy it needs to invest in sectors of the economy other than oil such as tourism and agriculture. This way it would be building a more sound and stable economy that is not at the mercy of crude oil price fluctuations.