Will Oil Industry Go in Exile? Will It Be Dead? – An Overview
Will Oil Industry Go in Exile? Will It Be Dead? – An Overview
Oil industry has the tough time to pass. Recession in the oil and gasoline market warns people in the world. Will the gold liquid (oil) be banned to protect environment? Or what is the future of the oil industry. Many oil companies have closed shutters to stop selling oil because of dramatic decline in the prices of oil. Naturally, people have to analyze several reasons of removal of oil industry. Risks of oil and gasoline suppliers should not be minimized. By 2020, the oil companies will have to design plans how to resist the recession because of the advent of new alternative energy with a fast solution.
Risks on Rise in Oil Industry
Oil is used to fuel up vehicles and machines. It is fossil based lubricant product to save cost of vehicle maintenance. However, the insurgency in OPEC nations , and the sudden nosedive in the prices of crude oil have displeased major oil companies Besides, slowly, the storage of natural raw oil underground is not sufficient. By 2030, the whole world will have massive crisis. It will not be recoverable. OPEC countries are fighting for dominance, and global supremacy. ISIS outfits grow faster in ME to claim independent land for starting new regime. ISIS militants target resourceful oilrigs, reservoirs and oil refining centers for bomb explosion. Their heinous attempts to destroy qualitative crude oil must be sign of danger. In addition, the US and Russia are bringing new laws to ban Islamic nations to sell oil. So, this turmoil will exist to hamper the production of precious oil in upcoming days. The closure of small and medium size upstream companies must send alert message to investors. If prices of oil are low, investors will not be interested in transferring fund for boosting up the oil companies. So, indirectly customers will be harassed. They want the speedy recovery but the situation is not favorable.
Oil Industry at Stake
Cold war, crusade, and insurgency are destroying many resources. Fossil oil is at stake due to acceleration of non-stop terrorist attack. However, technology is also a hindrance to obstruct the growth of crude oil. The environment needs to be detoxified. Healthcare organizations are unanimous to reduce the aftermath effect of oil usage. So, alternative biodegradable energy must entice people to rescue their families from destruction. For example, electric vehicles, solar energy, and even fuel cells are less harmful comparatively. Electric vehicles are environment friendly, Drive train of these upgraded models are basically energy efficient with zero carbon emission. Within a decade, around 90 percent people will buy smart vehicles which are battery powered. The alternative solar energy will ruin oil industry severely. Russia, China, America, and OPEC nations invest money to relocate their business. They need to install sophisticated machinery to innovate the workstations to have pure solar energy for helping people to cook food. Their houses are glossy with luminescent photovoltaic light which is cool. The earth will be green to inspire next generation to live confidently. Smoke and dark fume will be totally invisible as you must have devices propelled by solar energy and electricity.
Restoration of Oil Industry Slows Down
Shale oil sectors in America make American financers delighted. They collect this new type of oil using the modern technology. Shale oil covers 1 percent of global economy.US will have problems with the coming of Iraq, Iran and Kuwait to increase the oil exporting. Iraq and Iran were banned to sell crystal clear oil. However, after the negotiation with White House, they are now best competitors to challenge American oil companies. Donald Trump’s straightforward decision to cut rapport with Islamic world must be bad impression. It will create pressure on oil companies to minimize oil production\. Side by side, fuel cells manufacturing units are earning profits. It is much safe to customers. The combination of hydrogen and oxygen is done to generate electricity. Oxygen in air is in plenty. Hydrogen is processed through chemical components. The production of toxic gasoline elements is extremely low.
Iran’s Comeback Is Turning Point to Global Oil Exporters
The condition of oil industry in Iran is improving after good response from US to lift the ban from head of Tehran. In a report, one of the high officials of Tehran admitted the good motif of western communities to go ahead with bundles of new projects to deal with oil companies in Iran. This country is the second largest in terms of storing natural lubricant oil. It is the fourth largest oil producers to sell this precious gold liquid. The big oil reservoirs and rigs will be unlocked once again to export oil to the global market at the existing rates to make up the gap. Iran will have new nuclear deal to start running uranium facilities in Tehran. However, US warn that Iran should not create atom bombs. This negotiation is helpful to OPEC and Iran as well to trade with American oil companies. Iran is agreed to allow Shale oil companies of US to open new subsidiaries in Iran. So, luck of oil producers will be good. Iranian participation will energize many oil companies which are sick. Iran will increase oil delivery by adding approximately one million barrels more to 2.7 million barrels per day. So, the competition will soar up with the availability of crude oil for sharing with other countries.
OPEC Facing Deadlock
OPEC nations are facing trouble due to insurgency. Saudi Arab has chronic relationship with Iran over the ethnicity. The land possession, religious intolerance and subversion are still burning to make the diplomatic relationship caustic. Riyadh is not ready to deploy oil, gas and other costly products to Lebanon because of the acceleration of support to rejuvenate Hezbollah. Communal force in Lebanon is nurtured by Iran. So, Saudi Arab will not spare Tehran in spite of getting proposals from Iran to form a neutralized community to find the solution in this regard. Riyadh is criticizing US for making tie-up with Tehran in the matter of nuclear proliferation treaty without consulting Prince of Riyadh. Secondly, Hezbollah, the moderate resistant group in Lebanon, is getting arms from Iran for supremacy over rebels. ISIS militants take advantage to defeat good force. So, oil dealing must be occluded due to political turmoil and mistrust.
Petro Euro and Crypto Currencies –Much Controversial to US
Meanwhile, the controversial Petro-Euro currencies would hamper the oil exporting. Iraq and other OPEC nations want the least reliance on American dollars. It is performing smoothly to help OPEC oil industries to have revenues. They need Euros from Western countries. Saddam’s petro euro concept must be made effective in OPEC region. America is opposing the usage of Petro Euros. On the other hand, Venezuela, another OPEC member, has declared the introduction of petro crypto-currency to have more financial mileage. Maduro , Venezuela’s President, is desirous of changing the financial currencies to utilize reserved gold and diamond. These innovative petro crypto currencies will be used to sell oil to America. It will reinforce the internal economic foundation. However, US has already closed doors on face of Maduro. America will not accept crypto currencies. So, the tussle between Maduro and Trump will be severe. It will affect oil industry. Maduro call it a type of pecuniary persecution which will make a wedge to destroy the oil industry. US will not permit OPEC nations to choose petro Euros or crypto currencies in the case of monetary transactions. So, upcoming days will not be peaceful to OPEC to survive. However Iran’s arrival in the oil exporting business must revive America to cross check the demand of OPEC and Tehran.
Lack of Infrastructure to Transform Oil Industry
Though the substitutes are at your hand to shrug off the dependency on petroleum products, the lack of advanced infrastructure to remodel the industry must be a major barrier to businessman. Solar energy plants and electric vehicle manufacturing companies must be financed to improve their production rate. They require more investments to install hi-tech machines. In under developing nations of Africa and Asia, people are not trained. The technology and manpower are difficult to arrange. Illiteracy, poverty and malnutrition cripple them to expect bright days. Till then, the need for basic fossil liquid must be friends to them to complete their daily jobs. Besides, people need to understand the operating systems and mechanisms to handle innovated vehicles. They should be comfortable to drive the e-cars.
In spite of increase in online product sales, and internet browsing to have information, people need to move. They have to catch cars to reach offices. 3d movies and video clips on internet can’t spoon feed these crazy guys. They travel by trains and cars to reach the destinations to see the nature. Definitely, it will make the oil and gas industry alive for more decades. However, the jolt from alternative biodegradable energy will snatch large chunks of profits to outperform conventional oil industry. It will not die but surely struggle for existence.