The Future of Oil
Title : A Critique on “The Future Of Oil”
INTRODUCTION
In April 9, 2012 an article in TIME Magazine, titled " The Future of Oil" by author Bryan Walsh which is a senior writer for TIME magazine, covering energy, environment and diseases infers and appraises the future of oil in the aspect of economy, value, scarcity and finding its alternatives. The author reveals and reviews the importance of oils to global economy as well as the urgency on finding another replacement for oil in order to flee the world from over-relying on this non-renewable natural resources. This facts have agonized the world and people starts concerning since decades ago when people found that the oil is not renewable and not reusable.
SUMMARY
In the first part of the article, the author reviews the discovery of new plentiful oil sources in the Atlantic Ocean 180 miles east of Rio de Janeiro could produce68,000 barrels of crude a day, yet it is still disproportional to the demand all around the world. Nevertheless, the latest advanced technologies applied on automobiles and recession of economy in US have temporary shed the demand oil, the rapid growth in other countries like China, India and certain developing countries have equalize again the demand and supply graph back to the extreme level. These bring a phenomena that plentiful but expensive oil in the market. The price of oil will still be hardly to drop. Moreover, there is still no other substitute available for oil, it is prone to be big booms and deep busts, taking the global economy along with it. When the global economy heats up, demand for oil rises, boosting the price and encouraging producers to pump more. Inevitably those high prices eat into economic growth and reduce demand just as suppliers are overproducing. Prices crash, and the cycle starts all over again. However, the environmental issues and costs have to be brought to be concerned. The catastrophic oil spill accident happened in the Gulf of Mexico had brought
INTRODUCTION
In April 9, 2012 an article in TIME Magazine, titled " The Future of Oil" by author Bryan Walsh which is a senior writer for TIME magazine, covering energy, environment and diseases infers and appraises the future of oil in the aspect of economy, value, scarcity and finding its alternatives. The author reveals and reviews the importance of oils to global economy as well as the urgency on finding another replacement for oil in order to flee the world from over-relying on this non-renewable natural resources. This facts have agonized the world and people starts concerning since decades ago when people found that the oil is not renewable and not reusable.
SUMMARY
In the first part of the article, the author reviews the discovery of new plentiful oil sources in the Atlantic Ocean 180 miles east of Rio de Janeiro could produce68,000 barrels of crude a day, yet it is still disproportional to the demand all around the world. Nevertheless, the latest advanced technologies applied on automobiles and recession of economy in US have temporary shed the demand oil, the rapid growth in other countries like China, India and certain developing countries have equalize again the demand and supply graph back to the extreme level. These bring a phenomena that plentiful but expensive oil in the market. The price of oil will still be hardly to drop. Moreover, there is still no other substitute available for oil, it is prone to be big booms and deep busts, taking the global economy along with it. When the global economy heats up, demand for oil rises, boosting the price and encouraging producers to pump more. Inevitably those high prices eat into economic growth and reduce demand just as suppliers are overproducing. Prices crash, and the cycle starts all over again. However, the environmental issues and costs have to be brought to be concerned. The catastrophic oil spill accident happened in the Gulf of Mexico had brought