Introduction of Effect of Coronavirus and Oil War in The World Economy

Coronavirus is that virus or problem which is now days spread around the world and it is affecting badly every single factor of the economy in the overall world. Every field or working that is related to people is facing a crisis due to this pandemic. Oil is that thing which is used worldwide and its consumption is always present in a bulk. The economy of Saudi Arabia among all economies of the other countries is in the top twenty in the world. In the world, this country has the largest petroleum exporter rankings, as its proven petroleum reserves have the second-largest reserves in the country. They are considering energy supervisors and it is the fifth-largest proven natural gas reserves (MULDER, 2020).

The reserves are very vast and sufficient that they are going to other countries as well. Many of their services are going to be arranged and maintained in a way that they supply their oil to other countries as well. They have a very profound way that delivers or supplies oil to other countries and hence they are very rich in reserving oil and supplying it to other countries. There is a concept among other countries that Saudi Arabia will never receive an oil decrease or the issue of oil with its reserves that they will not become short in the use of oil (Prince, 2020).

 It is somehow right but the system with which oil is reserve and store in the Saudi Arabia reserves centres is very quick and effective as well. Saudi Arabia is well sufficient in their workings as there is a difference of many of the things and hence this difference is very much big that they are relying on this and all the other countries are taking oil from Saudi and they are dealing in a very large amount of oil to compensate well with their oil usage. There is research, which says in today's world the oil prices are increasing as there is inflation running in the overall world's economy and hence they are going to affect the overall oil reserves and this thing is creating problems for the other countries (Politico.com, 2020).

            To complete their oil reserves with such high prices although it is very emerging nowadays that oil reserves are increasing in the country because of the increase of the need for oil refineries and hence there is a need to be complete well and to keep it maintained as well. The more you invest in oil refineries these days the better they are going to manage the whole scenarios in a way that the more they get you through this quickly which is the usage of oil the better countries will be able to manage the deficiency issue of their country. There have been many things that need to be discuses in a way that they will manage and happens to be one of the most important and unique features in maintaining the oil refinery maintenance and satisfactory conditions for sure (Newmyer, 2020).

 Oil reserves are diminishing in the world because many issues are managing the ways with which we can take an idea that what is going to happen in storing the oil reserves more properly and more efficiently. There have been many different terms that are going to be selective and managed in a way that the more you invest in oil circumstances the better you will be able to understand the current need of the oil reserves. The overall world is disturbed from the usage of oil and especially from its diminishing perspectives as the more you invest in this scenery the better you will be able to manage the oil reserves. Efficiently and properly so there has been inserted a more innovative and more ideal way to work properly and hence the oil prices can be stable only if there have been sufficient things needed to be controlled and managed properly (WALT, 2020).

Literature review of Effect of Coronavirus and Oil War in The World Economy

            The economy of Saudi Arabia among all economies of the different countries is in the top twenty in the world. In the world, this has the greatest petroleum exporter rankings, as its proven petroleum reserves have the second-largest reserves in the country. They are thinking about as power supervisors and it is the fifth-largest verified herbal fuel reserves. The reserves are very considerable and enough that they are going to other international locations as well. Many of their offerings are going to be organized and maintained in a way that they supply their oil to the different nations as well. They have a very profound way that can provide or components oil to different countries and for this reason; they are very rich in reserving oil and presenting it to other countries. There is a concept amongst other international locations that Saudi Arabia will in no way receive an oil minimize or an oil difficulty with its reserves that they will now not end up short in use of oil (Fernandes, 2020).
            It is someway right however, the device with which oil is a reserve and saves in the Saudi Arabia reserves facilities is very quick and effective as well. Saudi Arabia is well ample in their workings as there is a difference of many of the matters and for this reason; this distinction is very a lot large. They are relying on this, all the other international locations are taking oil from Saudi, and they are dealing in a very giant quantity of oil to compensate properly with their oil usage. A lookup says in these days’ world the oil costs are increasing as there is inflation strolling in the standard world’s economic system and hence they are going to affect the overall oil reserves and this component is growing issues for the different countries (Albulescu, 2020).
            To complete their oil reserves with such excessive fees although it is very emerging nowadays that oil reserves are increasing in the united states due to the fact of amplifying of the need of oil refineries and for this reason, there is a want to be completed nicely and to keep it maintained as well. The more you invest in oil refineries these days the higher they are going to manage the entire scenarios in a way that the greater they get you via this quickly which is the utilization of oil the better international locations will be capable to manipulate the deficiency problem of their country. There has been a lot of things that desire to be discuses in a way that they will without a doubt manages and happens to be one of the most necessary and unique features in preserving the oil refinery maintenance and exceptional prerequisites for sure. Oil reserves are diminishing in the world because there are a lot of problems managing the ways with which we can take a notion that what is going to happen in storing the oil reserves greater suitable and extra efficiently (Ndedi, 2020).

      This economic vision helps to explain the accurate direction for the development of the long term of the economy and it also explains the goal related to the better life of Bahrain, which is the heart of this vision. In the public and private sectors that include organizations and governmental institutions with international bodies and consultancies, the four years spent on extensive discussion with a major range of opinions. Based on three major guiding principles, the economic vision 2030 gives more attention to the vision of the economy, society, and government (Albulescu, Coronavirus and oil price crash, 2020).

Driven by a pioneering private sector, which helps in making the economy globally competitive, that government will shape, built to productive oil wealth. Their principles are sustainability, fairness, and competitiveness. With the help of high wages jobs and increased productivity to get high living standards and enjoying good living, this will raise the economy for a middle-class person. It is to make sure by this vision that every Bahraini will guarantee live his life with full potential and feel secure in living in Bahrain. An ongoing program for the institutional and economic reforms introduced by the Economic Development Board at the launch of economic vision 2030. Also, for this first national economic strategy must be developed that work as a roadmap for the way of success. Sustainable development goals also explained through this vision (Ozili, 2020).

The public sector is driving the growth of the country with a considerable share. Competition is going to increase in the global economy and government finances become tougher as this model is working out of the stream. In Bahrain, the private sector independently able to drive economic growth. On a firm foundation, the economic prosperity explains through Bahrain's vision. With the principles of sustainability, the government finances on a system that should be forward-looking and stable. In the field of applied science, the government of Bahrain utilizes its resources by improving its capital through education and training and invests in the future. Innovation is a major part of sustainability in the private sector where new competitors and modern technology shortening the lifetime of products across the global level (Chohan, 2020)

The vision of Bahrain creating a wide-based of prosperity where the future of country economic success will affect society. Toward society, every person presents with opportunities, given the means and contribution worthwhile. All the transactions should be transparent to maintain the factor of fairness in the public and private sectors. In any type of activity like the outcome of tender, land for public auction or employment, the fair and free competition must be held with public and private sectors openly. A regulatory and legal framework must be provided by Bahrain for fair treatment of owners with foreign investors and ensure the protection of customers. The main purpose is to justify the implementation of laws and stamping out corruption. Under the law, when everyone treated equally through international human rights and access to jobs, education and health care then fairness in the society can be observed (Price-Smith, 2010).

In the global economy, Bahrain will obtain a maximum level of competitiveness. In a competitive environment, driving growth, profitability, and wages, increased productivity comes naturally. Employees; wages are going to increase when the continuous and high improving productivity appears in the business. For each position, people with the right skill need for high productivity. To become more competitive, the government of Bahrain gives more attention to attract foreign workers with effective skills, retain qualified staff and educate the people with new skills. For local and foreign companies, Bahrain is the best place to start a business. The action plan of 2019-2022 by the government focus on the success of the kingdom and its related people through a fiscal balance of revenue and its expenses with the positive and continuous economic growth, comprehensive development, cash stability and sustainable. To maintain the security and stability provide necessary services to the citizen, to obtain the required results, the initiatives, policies, and instructions must be a line up with an action plan of government. The government action plan is going to be more successful when the living condition of citizens become better through citizen-driven development, avoiding any additional future burden on the citizen and maintaining the current gains related to the growth of the economy (Naushad, 2020).

Such macroeconomic decisions and policies help to develop the economy in favour of citizen and they prefer to utilize their services for the country. The sustainable community will be developed when Bahrain creates a stable society. In the sustainable development goals 2030, many factors are included like creativity, a better education system, gender equity, economic development, and positive economic growth. The main objective of the action plan Matched with the sustainable development plan that supports the economic condition with its all citizens and enhances their living standard according to the new vision (Price-Smith, 2010).

Bahrain's vision plan is very helpful in obtaining the growth and its development according to macroeconomic policies. Bahrain wants to increase the scope of entrepreneurship and innovation with the conductive environment of business and increase economic activities. Knowledge-based firms and high value-adding firms will be established according to economic vision. The government of Bahrain modifies their all-economic activities to increase the revenue generation and service of different type of businesses.

The favouritism and corruption are not supported through government policies by ensuring economic growth with the transparent and fair regulatory system. According to international standards and trading format, Bahrain wants to upgrade their all economic activities and implement such plans and actions and support their economy and also encourage the citizen to take major participation in the development of the country by providing them new and additional skills and also make their living style better and attractive for the citizens (Ozili, 2020).

Multicultural society will be established that can handle people of all types and support the economic activities for its better development. Globally the demand of the market is going to increase so Bahrain's government implement such vision that focuses on the greater productivity and bring innovation in its product because the competition is going to increase at international level. This plan helps to monitor the economy through different actions and their results as when the vision plan will be implemented then proper check and the balance must be determined by the government and also observe the response of citizen toward that plan so different actions will be taken to make the life of citizens and also economic condition better and beneficial.

Analysis of Effect of Coronavirus and Oil War in The World Economy

The overall analysis says that Another issue which the United States is facing is the addition of the amount of money which the US spent on protecting its oil interests abroad. The United States heavily relies on foreign oil has prevented them to intervene in the conflicts around the world. For example, when Russia annexed the Crimea, there was a lack of intervention by Europe has made the foreign policy decision worse energy stability influence. With the help of energy independence, the United States of America can be able to free themselves from fear of trade retaliation while making foreign policy. This is getting easier for the United States of America and other countries who are having energy independence that they will intervene in the unjust systems of other countries or could easily boycott their unjust systems. The fundamental point is that oil and increasingly gas are global commodities so the price of oil outside the US impacts the price of oil within the US (Friedman, 2020).

https://www.bloomberg.com/news/articles/2020-03-10/how-virus-and-tumbling-oil-may-affect-global-growth-chart

This will have a direct impact on the price that we pay in the US for energy and the price that we pay at the pump and it also has a direct impact on productivity. The country who has the most influence on the oil prices of any nation is Saudi Arabia and they can only pressure the other producers by giving threats of price war and on the other hand, consumers tend to have more power over the long term price of oil. Russia supplies one-third of the European Union oil and gas and in turn, EU represents 20% of the world's economy which means that a slight increase in oil prices will be dangerous to their economy. Russia and China have signed a deal for 30 years which is for $400 billion of supply and demand for natural gas. The purpose of this deal is to limit the rest of the world for going towards safe energy development (CÁRDENAS, 2020).

https://www.washingtonpost.com/news/powerpost/paloma/the-finance-202/2020/03/19/the-finance-202-oil-price-are-collapsing-amid-the-coronavirus-shock-the-economic-consequences-are-dire/5e727c62602ff10d49acf271/

United States of America can only achieve energy independence by producing cheap and abundant shale oil and gas which will eventually help spark a golden age for US manufacturing. The United States of America is doing reshoring which means that they are getting or bringing back the production to home. The prices of the US are far lower than Europe and Japan and it is due to the rising wages in china while it is increasing the productivity of US factories. Due to the energy independence, most of the companies such as Caterpillar, Ford, General Electric, and Dow chemical has announced to make hundreds of millions of dollars’ investment in the new plants or to reopen the shutdown plants.

https://voxeu.org/article/oil-price-wars-time-covid-19

The energy independence will enhance and encourage the national security because it will be more decentralized, clean sources of energy such as wind and solar, frequent and mass transit, disposable goods replaced by well-sourced goods, and economy that reflects the environmental impact of every financial transaction. The price of oil is very inelastic in the short run because producers haven't fully adjusted fixed factors of the production to change in prices. But in the long run, more producers can enter into the market and existing producers can install new capital equipment for innovation and building more factories so it will have a larger response than the short run. The pipelines are the safest way to transport oil and gas and the rail is also considered a safe way to transfer but pipelines are without any doubt. Renewable energy is getting hype in the global world as it is considered as a viable alternative source to fossil fuels in the short-run (Irwin, 2020).

 

https://voxeu.org/article/oil-price-wars-time-covid-19

The point of action related to economic growth explains that positive economic growth is going to maintain with enhancing sustainability and shows comprehensive development to obtain the fiscal balance. The economic development and growth depend on the fiscal balance to maintain its revenues and expenses at the same level to make the condition of the economy productive and beneficial for the government and the citizen of the country. Labour productivity growth explains interns of citizen and all the facilities that are provided by the Bahrain government to its citizens by invest on then through sustaining, improving and enhancing the scope in education, health, and other sectors to provide a then better lifestyle and also their productive growth maximizes through better skills and knowledge (Naushad, 2020).

Obtain the gender equity and sustain economic and social development by adopting initiatives and legislation for family stability. Serving the citizen through enhancing growth through infrastructure and continue financing development projects.

https://www.bbc.com/news/business-51706225

There have been many different terms that are going to be selective and managed in a way that the extra you make investments in oil circumstances the better you will be able to apprehend the present day want of the oil reserves. The normal world is disturbed from the usage of oil and especially from its diminishing perspectives as the greater you invest in this scenery the higher you will be capable to control the oil reserves.  Efficaciously and desirable so there has been inserted an extra modern and greater ideal way to work suitable and consequently the oil prices can be steady only if there have been enough matters wanted to be manipulated and managed properly.

Conclusion of Effect of Coronavirus and Oil War in The World Economy

Summing up all the points we can say the energy independence is being advocated by different investors and politicians because they seeing future in it and they are also observing the impact of natural gas extraction, uses and benefits to the economy. Due to the increased collection of money from the natural gas, tempted the trump administration to strive for energy independence. The increased concern of the politicians on this health plan is because they know that it will be an advantage for the economy and also reduces the imports from those countries with whom there is a collaboration of the USA such as Russia, China, Iraq and Saudi Arabia. These countries are always being a tension for the USA but all are huge exporters of energy and has taken the United States to those situations which have been too awkward for them to handle.

Another benefit of energy independence is that it creates millions of manufacturing jobs by 2025 and this is only due to the low energy prices and demand from the shale gas industry. Four years ago, the oil and gas prices of Europe and USA were almost same but now their prices are three times higher than the US oil and gas prices and it still grows by twice as high in 2035. If America achieves energy independence in full, then it will have a great impact on the economy such as South America, Africa and the Middle East.

With the help of secured energy independence, the interest of the United States of America has been diminished from the Middle East. Some of us think that oil is the most important factor for the US foreign policy but this myth is becoming reduced and diminishing as they moving towards their production. Although as a global superpower, the USA is concerned about the stability in the region particularly on the borders of Russia and other countries.   In this response, the Iranian president said that Tehran will evade the sanctions and keep on delivering oil barrels to the market. This resulted in a decrease in the export of Iranian oil by almost 1 million barrels per day due to the decrease in the demand of more than 20 nations.