help in English 2010

ENGLISH 2010

Shannon Branfield

Introduction to dependence on oil

The globe is witnessing a surge in the utilization of oil resources despite concerns for people to reduce dependency on the commodity on the basis that its poses negative implications on the environment and economy of nations. Considering that scholars have sought to reverse the norm for years, but such efforts have not succeeded, it is imperative to explore the issues to envisage the future of the globe concerning the utilization of oil as the primary source of energy for the automobile industry, as well as, in factories. In a bid to alter the prevailing situations, the paper identifies the sources of the problems from the commencement of the preference of the resources to the contemporary times. After which, the research will suggest solutions to the situation to make the world less dependent on oil. However, as things stand the world will depend on oil for many years to come.

Primary sources such as publications documenting the trends in the utilization of the resources will serve as the materials for the study. The reading will equally infer to books exploring the subject as well as reports documenting the situation in various parts of the globe. The qualitative approach will facilitate the process after which the findings will serve as the theoretical framework for quantifying whether the situation is acceptable or not, of which the paper acknowledges the increase in demand for oil. Throughout the process, nations that produce oil will serve as the reference for the study of the present and the future regarding dependence on the resource. The paper will also focus on the utilization of oil as the energy resources in various parts of the globe as well as the implication of the preference for the energy source out of the many alternatives such as coal and solar energy. Additionally, the article explores the motive behind the growth in the use of the commodity and ways for halting the growth.

Proposal of topic

Detailing the issue, aspect of focus, interests and anticipation of the topic

The interesting thing about the topic is that people are concerned with the increase in dependency on the resources known to pose dynamics on the social, political and economic sphere. It is interesting that there is still the preference for the use of the resource in the automobile industry, yet the dependence is risky for the sustainability of the global markets. The production is rising yet environmental activists argue against the use of oil on the basis that it contributes to the increase in cases of pollution on the ecosystem. Energy economists who include Greene (2004) also argue that dependence on oil destabilizes the markets thus causing political conflicts; hence, the need for people to rethink an alternative resource. It is also puzzling that nations like the United States and Saudi Arabia are doubling the production of oil as opposed to generating alternative sources of energy. It is equally interesting that the prices of the resources are on the downward spiral at a time when the demand is on the rise. As a result, it is complicated envisaging the future with regards to demand for oil. As things stand, the possibility of developing countries increasing the purchase of oil is inevitable. Technological innovations create the opportunity to use biofuels, but the rate of green energy adoption is not promising; thus, making the situation puzzling (Greene, 2004). It would have been motivating seeing nations to reduce importation of the commodity, but such is not the case at present.

The paper will approach the issue chronologically from the discovery of the resources that has become a problem to the present situation in which the increase in demand is also an issue. Afterward, the study will evaluate the factors that influence the preference of oil among many other alternatives. The study will also explore the implication of the use of the resources on the economy of the globe, as well as the future implications of dependence on oil. Likewise, the paper will explore the environmental impact and the socio-political implications especially in nations that rely on the sale of the commodity for sustaining the growth of the economies. The researcher will approach the study in sections. The first part of the writing will explore the origin of the problems of the utilization of the energy resources. After which, the study will comment on the dependency of the resource as a major problem to the globe. The exploration of the related problems and the solution to the situation will follow. In the conclusive part, the study will make recommendations on the situation in a bid to make the demand of energy in various parts of the globe sustainable. The objective in narrating the piece is inspiring audiences to seek alternative sources of energy to help reduce dependency on oil as the energy source preference for industries. The article is also an argument on the dangers of relying on the energy sources from a broader perspective.

Oil usage negative impacts

There lacks consensus on what constitutes too much when it comes to the utilization of energy resources since time immemorial. However, as thing stand the levels of demand for petroleum have surpassed the rates of usage in the past decades (Lefton& Weiss, 2010). As per the records of Center for American Progress, the United States uses 1 billion a day in importing at least 13.5 million barrels of the commodity. Bromley (2005) adds that the automobile industry contributes significantly to the exploitation of the energy. The figures for percentage use of oil are high in comparisons to growth in populations. Although factories also contribute to the excessive use of the resources, the levels are way below the rates in the automotive industry. The prevailing situation in the globe suggests that every sector of the economy utilizes oil and such is an indication of overreliance. According to Basedau& Lay (2009), the use of the statement too much is based on the fact that a nation cannot withstand the negative implication of the utilization of the resources. For instance, the pollution levels are surging courtesy of the use of the resource. The transportation industry is completely dependent on the commodity since any adjustments with regards to production affect vehicle manufacturers and charges for fares.

Another indicator that the world is using too much of the resource is that the supply from Saudi Arabia and the initial OPEC member is enough to meet the needs of the globe, but such is not discouraging the United States from investing in the production of crude oil. As noted by Greene & Ahmad (2005), the country is going to surpass Saudi Arabia’s production capacity in less than two decades. The situation is an indication that the growing human population is demanding a lot of energy resources. The United States would not have engaged in production if the demand was average. As noted by Basedau& Lay (2009), the situation is attributable to the increase in the manufacture of automobiles and the need for people to commute to various places around the globe. In the future, the scenario will likely replicate if corrections are not made at present.

The works of Fasano&Iqbal (2003) suggest that the situation is a problem. The scholars evaluate the past in making the assertions of which the reading insinuates that the industrialization that begun in the turn of the 19th century is responsible for the escalation of problems relating to the use of oil. Before the era, industries relied on coal and firewood. However, after the invention of the commodity, the preference of people shifted to the energy resources and such developments marked the beginning of the economic, social and economic problems related to oil. As the population grew over the subsequent decades, the problems compounded until the contemporary times but unlike the past, the situation today is appalling (Ross, 2001). This explains the need for caution in approaching the issue since every sector of the economy is in one way or another depending on the utilization of the resources (Holdren, 2006). Theories have been put forward to insinuate that the stability of the globe is dependent on the use of oil. Using the case of the Gulf war, for instance, the assumption was that Iraq was dependent on oil too much; hence, the cause of the adverse impact on economic growth during the war. If the dependency was not as much the nation could not have suffered dire implications as the case witnessed at the time.

Another indicator that the usage of oil is too much is that the demands by industries are way beyond the projections made few years ago. As at now industrialized nations are using at least half the imports from the Middle East. The share of the alternative sources such as solar energy is way below the global demand for the energy resources as envisaged in scholarly studies (Benes, et.al. 2015). Based on historical records, the past was characterized by the use of coal and firewood in running the operations of industry and such was a cause of concern to environmentalists worried over the exploitation of forests. However, the present has brought different dynamics in which the demand for firewood is a meager percentage of the demand for other energy resources (Laherrère, 2003). Using the similar analogy, the comparisons of the population and utilization of energy resource suggests that people in the contemporary times are demanding oil at higher rates, unlike the past in which the demand for firewood was controllable. For that reason, it is evident that the world is too much dependent on the resources and such pose with its economic risks that could threaten the stability of the globe.

Problems of dependency

Excessive exploitation of oil poses a myriad of challenges some of which are contestable. One of the risks is that fluctuation in demand and supply of the commodity affects prices of other commodities in the global market. As a result, enhancing economic stability becomes difficult in markets heavily dependent on the production of the resources as the revenue sources (Miller & Sorrell, 2014). The government incurs vast amount of resources importing the commodity for use for running state owner entities. In Saudi Arabia among many other oil producing nations, the economic focus of the state is much influenced by the levels of demand for the commodity in overseas markets. The automobile industry, from car manufacturers to suppliers is heavily affected whenever there is new development in the oil business (Hughes & Rudolph, 2011). Another realm that suffers directly whenever there is a shift in prices of oil is the aviation industry that witnesses an increase in fares as the cost directly relates to the supply.

The environment suffers the negative effects of pollution attributable to the usage of oil. Unlike the past, there is dilapidation even in regions unoccupied by human populations where oil exploration is taking place. According to Ross (2001), the atmospheric condition in China is appalling due to overreliance of oil in industries. The state of California in the United States has equally had its share of troubles in trying to clear the air from pollutants emitted by vehicles in many of its busy highways. In the Gulf of Mexico, a catastrophic situation was witnessed during the BP oil spill in the Pacific oceans (Crone & Tolstoy, 2010). The situation leads to the destruction of the environment that led to the death of many sea animals. The company recorded losses that destabilized the company making it hard to advance internal operations (Laherrère, 2003). An additional negative implication of oil demand increase is that policies of oil producing nations are heavily influenced by the activities in the international market (Crone & Tolstoy, 2010). The agenda is always maximizing to ensure the increase in economic returns from the sale of the commodity.

Nations that lack sound governance structures suffer as a result of the availability of the energy resource and such has been the case in many African countries that are members of OPEC. The government in the respective territories is unable to ensure security of the warring factions seeking to control the resources. In turn, the availability of the commodity becomes a security scare and not a blessing to the local populations. The processes of drilling the resources to meet the excessive demand of the global populace degrade the land in oil producing nations making it hard advancing agricultural activities or undertaking construction. For offshore production, the aquatic life is threatened by the process of drilling creates an imbalance in the ecosystem. Another risk of engaging in the production of the resource is that government channels the vast amount of resources in the establishments of infrastructure for oil even in situations where the funds could have helped revive other sectors of the economy. It also becomes hard, inspiring people to venture into professionals unrelated to the production of the resource as the thinking of many is that oil business rewards handsomely.

Dependence on the sale of oil has had adverse effects on the growth of other sectors of the economy. For example, the decline in the agricultural sector in Nigeria is attributable to the focus on oil production. As a result, the country fails to reach its potential in many other sectors (Fasano, &Iqbal, 2003). Despite the negative associated with the exploitation of the energy resources, the production of oil poses with it social and economic benefits to nations endowed with the resources. The United Arab Emirates and Qatar are examples of states that have benefitted largely from the utilization of the resources. The only thing required in other nations producing oil is enacting in place policies to guide the exploitation and distribution of the resources. Investments in alternative sources are equally advisable since reliance on oil might pose dire consequences (Fasano, &Iqbal, 2003). The subsequent negative implication is that the competition for the clients of the resource creates tensions amidst nations. As things stand, some Arab nations are worried towards the advances of the United States in engaging in oil production.

Solution

Even though the situation is some nations are not as bad as pundits might suggest, there is the need to rethink the utilization of the resources to guarantee the stability of the globe for many years to come. The premise is that direct correlations exist amid global instability and increase in demand for oil since the activities of the markets are directly affected by the dynamics of the demand and supply of the commodity. For that reason, the first alternative should entail advancing studies to understand the motive behind the preference for the use of the energy resources at a time when there are technologies that could facilitate the production of an alternative to the energy supply. After which, the stakeholder in the business who include government should discourage dependency on oil by coming up with an alternative such as the use of solar energy through the production of electrically powered vehicles.

The second option should entail formulating policies that regulate the production and supply of the commodity in developed nations. The process requires much collaboration amidst all the stakeholders since the exemption of one party will automatically lead to the failure of the strategy. Subsequently, the sensitization of the population on the dangers of relying on the energy source is necessary (Hughes & Rudolph, 2011). The process can take a varied approach with learning institutions steering the process. The media should serve as the primary tool for the conveyance of the messages. Institutions such as the IMF should advise economist on respective countries on ways for sustaining economic growth using alternative sources of energy.

Continuous advancement of studies seeking to reverse the norm in which industries depend on oil products should be pursued (O'Rourke & Connolly, 2003). Scholars should present publication on international forums about the dangers of the utilization of the energy resources in a bid to encourage people to rethink strategies regarding the exploitation of the resources. Government funding research on alternative sources of energy is also a step towards reducing overexploitation of the resources that causes a threat to the economic stability of nations that depend on the exportation of the natural resources.

Conclusion and recommendation

Exploration of issues regarding utilization of oil requires a comprehensive approach since the quantification of people on what constitute much varies. In some nations, the ‘much’ is insignificant since the average consumption superseded the quantities supplied elsewhere. Therefore, before making assertions of what amounts constitutes excess, it is advisable exploring the issues independent of use, of which the paper suggests that demand is on the rise (Maugeri, 2006). The situation is more prevalent in developed nations as per the records of importation and exportation of the substance.

On that note, it is advisable formulating alternative that accommodates the divergent views of many countries since oil will still prove essential as an energy resource. An example of a practice entails encouraging companies to reduce production as a measure of enhancing sustainability while encouraging oil dependent nations to seek alternative sources as a strategy for diversification. After which, individual countries should work with an environmental lobbyist in devising ways for addressing the situation (Urry, 2013). The media should steer the role since the communication tools affect the perception of people which in turn influences behavior regarding utilization of energy resources.

References

Basedau, M., & Lay, J. (2009).Resource curse or rentier peace?The ambiguous effects of oil wealth and oil dependence on violent conflict.Journal of Peace Research, 46(6), 757-776.

Benes, J., Chauvet, M., Kamenik, O., Kumhof, M., Laxton, D., Mursula, S., &Selody, J. (2015). The future of oil: Geology versus technology. International Journal of Forecasting, 31(1), 207-221.

Bromley, S. (2005).The United States and the control of world oil.Government and Opposition, 40(2), 225-255.

Crone, T. J., & Tolstoy, M. (2010).Magnitude of the 2010 Gulf of Mexico oil leak.Science, 330(6004), 634-634.

Fasano, U., &Iqbal, Z. (2003).GCC countries: from oil dependence to diversification. International Monetary Fund.

Greene, D. L., & Ahmad, S. (2005). Costs of US oil dependence: 2005 update. United States. Department of Energy.

Greene, N. (2004). Growing energy. How biofuels can help end America's oil dependence. Growing energy: how biofuels can help end America's oil dependence.

Holdren, J. P. (2006). The energy innovation imperative: addressing oil dependence, climate change, and other 21st century energy challenges. innovations, 1(2), 3-23

Hughes, L., & Rudolph, J. (2011). Future world oil production: growth, plateau, or peak?.Current Opinion in Environmental Sustainability, 3(4), 225-234.

Laherrère, J. (2003). Future of oil supplies.Energy exploration & exploitation, 21(3), 227-267.