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Unformatted text preview: an Fund. GDP. Gross Domestic Product. The GDP is a country’s total economic output over the course of a year. IMF. International Monetary Fund. The IMF monitors the global economy and works to provide support for it when necessary. OPEC. Organization of Petroleum Exporting Countries People Mevdedev. President of Russia Putin (Vladimir). Prime Minister of Russia. Yeltsin (Boris). Former President of Russia. 4|Page Russian Oil DA BDL Russian Oil Disadvantage 1NC A. Uniqueness – Oil prices are high now which is boosting the Russian economy Kenneth Rapoza, Contributor to Forbes covering Brazil, Russia, India & China, 2012 (1/28/12, -oil-prices-bode-well-for-russiangovernment/) High oil prices mean more cash flowing into the Russian government. The country is dependent on energy exports to keep its budget surplus in tact. Oil futures cracked $100 a barrel this week, before settling at $99.56 for the May contract for WTI crude. Still, prices like that bode well for Russia’s public coffers. International Monetary Fund’s Moscow representative, Odd Per Brekk, said in an interview with Russian newswire Ria Novosti that high oil prices actually opened a “window of opportunity” for the country to take measures to strengthen and protect its economy from the ongoing problems facing Europe, it’s biggest oil and gas customer. To take full advantage of this opportunity, Brekk said, the Russian government must undertake a complete economic transformation – keeping inflation at 3%5%, cutting budget expenses, improving the financial sector and reducing its dependence on commodities materials. One way to do it is to use their oil wealth as a means to justify reform. Current geopolitical events are supporting high oil prices, mainly problems in Libya and Syria, and a new oil embargo against Iran. Ria Novosti also noted in its report that Iraq was contributing to high oil prices as well. As U.S. troops head home, some oil firms are looking at the security risks there and wondering if it is worth maintaining current projects. Russia’s government is expecting that the Iran oil embargo will contribute to a 10%-15% rise in oil prices, including the possibility of Iran closing the Strait of Hormuz, an important oil route in the Middle East. B. Links 1. (note) Read evidence or explanation as to how plan decreases oil consumption 2. A decrease in oil consumption in the United States will drop the price of oil globally Amy Myers Jaffe, Wallace S. Wilson Fellow for Energy Studie at Rice University, 2008 (“The Impending Oil Shock: An Exchange,” Survival: Global Politics and Strategy, 50:4, 61 -82, Given the large scale of US purchases, incremental US acquisitions of oil affect its overall international market price. Stated another way, the cost of each marginal barrel is higher than the price paid for that barrel, since this additional pur...
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This document was uploaded on 02/06/2014.

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