Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
Definition
Reliance on oil refers to an economy heavily dependent on oil exports for revenue generation and overall economic stability. Such economies tend to be vulnerable due to fluctuations in global oil prices.
Related terms
Oil rents: Oil rents refer to the revenues earned from renting out or selling petroleum resources.
Dutch disease: Dutch disease is an economic phenomenon where resource-rich countries experience negative impacts such as currency appreciation and decline in non-resource sectors due to over-reliance on resource exports.
Energy diversification: Energy diversification is the process of reducing reliance on one energy source (like oil) by investing in and developing alternative sources such as renewable energy.