Future of Oil Industry - Good or Bad? Comprehensive Study
Oil is precious natural liquid for people to drive cars, fuel machines, and illuminate houses. Golden liquid must be valuable to you. However, environmentalists and researchers have predicted that soon there will be recession with least storage of oil. This scarcity will happen by 2035 because of the wastage of natural oil and introduction of alternative energy to boost up the industry. In this sphere of technological advancement and faster progression, man will no longer need oil and gasoline products. This transformation will be harmful to the oil suppliers.
Will Oil Companies Backtrack?
A survey report states that right now the warehouse of the earth has around 1688 trillion barrels of natural crude oil which will give support to people for a span of around 54 years. When this storage room will be empty, people on the earth will have to cry for assistance. Therefore, future prospect of oil companies and many oil refineries is not good. On the other hand, experts also opine that the earth will reproduce oil. Or there will be an alternative way of extracting crude oil from underground level of the earth. Well, the world will have to be protected from insurgency, economic downturn, recession, terrorism and natural calamities. Stored underground resources should not be manhandled. This oil industry is alive on natural crude oil. However, recently major oil companies in ME and Europe are not comfortable because of dispute and political disturbance. Gulf War, Iraq’s defeat to US and the transfer of power to other countries must be unhygienic to OPEC members. Russia attacked Syria and killed rebels of Assad. Vast area in Mosul in Iraq is under terrorists who have captured major oil rigs and reservoirs. These ISIS terrorists want to block the routes to West due to cross border insurgency. These ISIS urchins use explosive materials to wipe out important oil reservoirs and depots. So, the shortage of gold liquid is easy to feel, OPEC nations like Saudi Arab, Venezuela and Kuwait. The massive breakdown in prices of crude oil few years back compelled these countries to stop the supply of oil. In-between, ban on Iraq and Iran must be a deterrent to Western countries to import oil from these countries. US were aggressive while dealing with oil companies in ME. Moscow is also good oil distributor. This country faced terrific downtime and therefore Putin changed his strategies to revive the oil sectors from the grass root. Moscow tries to enhance its presence in gulf region for multiple purposes. Apart from exhibition of muscle power and military strength, Russia created pressure on many neighboring countries and OPEC members to co-operate with Moscow to install new downstream pipe lines to ensure the oil supply crossing the borderline. Russia has improved its position in global oil and gasoline industry through collaboration with China, Saudi Arab, Venezuela, Kuwait and Georgia.
Introduction of Energy Efficient Vehicles
By 2030, more electric vehicles and battery powered cars will hit the global market. Volvo will release more updated vehicles which will run on electricity. So, biodegradable and alternative energy sectors will replace the demand for oil. If it happens, what about the roles of oil companies to expand the business? Frankly speaking, people have to wait for having cost effective electric vehicles which must not be expensive to them. Secondly, oil is still easy to use. In spite of innovation in the alternative energy, people like to buy oil and gasoline products for domestic usage. Under developing countries have lack of innovative infrastructure and technology to recycle solar energy to serve their purposes?
America Explore in Shale Oil Industry
America has remodeled its domestic upstream and downstream oil production sectors. It is a profit making industry. However, due to geographical restrictions and legal obligation, American oil companies have to restrict the oil supply. In addition, to be stable with long lasting presence in the oil sector, US have opened new shale oil refining companies in Texas and Delta. This shale oil helped US to compete with OPEC competitors even in tough time during gulf battle. If the prices of oil are dramatically low, rich countries will not sell oil. It will not be beneficial to them. Secondly, they are eager to use their oil reservoirs which have sufficient oil for being used in upcoming years. So, they wait for fair prices to deal with buyers. US have stock of shale oil which is collected from the rocks and then refined through hydrogenation process. This shale oil is equal to crude product. So, America is a big boss in producing such hygienic shale oil extracted from rocks containing kerogen.
Oil industry will not die. Through pacification and negotiation, oil companies will have to be agreed to work together. They have to be unanimous to accept the prices of oil sale for upgrading the industry. Finally, terrorists are destructive as they wipe out many oil reservoirs and rigs. Joint military escalation and effective air strikes on terrorists must recover the strength of oil suppliers. Crude and shale oil will make businessmen rich. OPEC members should have good mindsets to mobilize the oil distribution as well. On the other hand, South Sea issue, and North Korea’s devastating ICBM nuclear missile tests must have bad impact. So, all countries have to grow tacit understanding to rescue oil industry for meeting requirements of people in the world. The ethnic class, racial profiling, exploitation and side effect of global militancy are lethal components to deactivate investment process in the oil industry. Stats reports have confirmed that with the improvement of prices on per barrel of crude oil, companies must have relaxed mood to sell oil at competitive prices.