Oil Politics and Champagne Prices
Are Champagne prices in Dubai worthy of celebration and just what does a bottle of Champagne cost in your town? Basic business sense and economics suggests that the local price for anything should typically be as much as the market will bare and high demand will demand higher prices.
To understand the situation convert Dubai Dollars (actually United Arab Emirates Dirhams (AED) to your local currency.
A friend of mine currently living in Dubai sent me this photo of some wine prices, one might say her travels have taken her to some different places than a good percentage of the population on occasion.
First a little about this particular Champagne: The wine was from the Louis Roederer vineyards which rate an average 98 percent on France’s statutory 100-point wine classification scale. The Louis Roederer vineyards has been in business since 1776, and their family owns 75% of the grapes from Champagne, France. The rest of the world that makes similar bubbly stuff using the same variety of grapes from different regions are required to call their product sparkling wine or pretty much anything else as long as they don’t use the word “Champagne”.
For your edification here is a list of selected Champagne prices converted from United Arab Emirates Dirham (AED) to USD to help put things into perspective:
- United Arab Emirates Dirham (AED) = US Dollars (USD)
- 6980 = 1900
- 15000 = 4084
- 45000 = 12250
- 130000 = 35398
- 500000 = 136146
- 16000 = 4326
- 50000 = 13514
- 42000 = 11426
- 39000 = 10619
After Hurricane Sandy and watching all the people in line for most of the day to buy fuel in New York and natural gas being the cause of all those burning homes in New Jersey got me thinking–too bad the USA didn’t start investing in solar/alternative power and electric vehicles after the OPEC Oil Embargo in 1973-1974, now that would have been some sound energy policy.
However, at the time of the Arab/OPEC Oil Embargo Nixon (Republican) was the President, the next elected President was Carter (Democrat) to his credit he did put solar panels on the White house. Reagan (Republican) was the next President and he had those pesky solar panels removed. President Bush number 1 & 2 (Republican) had family oil money so no changes of course that might reduce oil consumption were a top priority, then came Obama and about all he has been able to accomplish on the foreign oil import front was to increase the federal gas milage requirements (the first time in over 20 years) to save fuel.
So now forty years after the Opec Oil embargo the USA still experiences gas lines with people waiting for hours just to buy two gallons of gas in New York three days after a big storm. Perhaps US energy policy has had something to do with why some people at least in Dubai can really afford a bottle of champagne at insane prices and why for others paying that much for a bottle of wine is likely impossible. There is no doubt a connection between the prices paid locally for a lot of things because the world is still hooked on Middle Eastern oil and there are not enough energy alternatives available.
EV of the Year Judge, independent green journalist, photographer, author and sustainability activist that has published over 1000 articles. Mr Burridge’s travels have taken him to over 30 countries and 300+ major cities. He is originally from the USA, but has been residing in Australia for the last seven years.
