Our Dear Readers,
These days, a Latin American country Venezuela is going through its worse time. Due to the plummeting oil prices, the income of this country has decreased substantially. As a result, this oil-rich country is facing lots of problems such as frequent power cuts, lack of daily use grocery items, riots for food, anti-government protest, etc.
For several decades, oil prices were stationed at a high rate primarily because of the growing demands from America, China, European countries, India, Japan, etc. All oil rich countries earned a lot of money by selling expensive oils, but they never tried to reduce their reliance on oil export for the generation of revenues.
Due to the high cost of oil imports, several countries have intensified their efforts to develop other resources of energy such as hydroelectricity, solar energy, and atomic energy. This has led to the reduction of oil demands.
On the other hand, all major economies of the world are still going through the Economic slump and there is no substantial growth in their Economies.
Due to the excess supply and low demands, oil prices are declining. All countries whose economy is heavily dependent on oil export must take a step to diversify their Economy if they want to sustain as a country as lessons from Venezuela indicate this.