ALTERNATIVE ENERGY SOURCES TO OIL

Analysing Strategy Base on Alternative Energy Sources to Oil



Analysing Strategy Base on Alternative Energy Sources to Oil

Introduction

The oil and its derivatives such as crude oil, petroleum, and other by-products are on the rise due to increasing demand in the international markets. The oil from natural resources can be used as fuel and contains great importance in variety of energy related areas. Therefore, oil is regarded as a highly consumable and essential energy source. The establishment of renewable alternative energy can be regarded as the strategy base on alternative energy sources to oil. Many countries nowadays are planning toward oil and energy reserves. This is done for security from fluctuating prices due to volatile demands in foreign markets (Gadmor, 2006). This is backed by many challenges that is faced by countries. Thus, the alternative energy sources are also brought under considerations by many nations. The transportation cost and other expenses cause the oil prices to elevate in the country. This is one of the main reasons that countries move towards accumulating the oil in their reserves.

The alternative energy sources to oil is deemed necessary as the various challenges confront the oil industry. The fluctuations and uncertainty of prices leads to loss in various fields such as commodity market downfall and expensive oil markt prices. The problems faced by nations compels them to consider alternative energy sources to oil. There were many substitutes proposed by the oil alternatives to be consumed instead of oil. This might include the various forms of energy and related factors such electricity and thermal energy (McVeigh, 2004).

Discussion

The oil reserves and production decline threats the nations involved in oil related energy sector. There have been speculations and observations about the gradual decrease in the oil reserves and production. Therefore, the nations are now conscious about the oil realted problems generating due to the downfall and shortage in the industry supply. The G8 and other nations in the West might consider to encourage the development of alternative energy sources and move away from a strategic reliance on oil during the next few years.

There are political, environmental, social, technological, economical, and regulatory factors affecting the current scenario of the oil related industry. These factors are shaping the current market structure of oil industry in terms of declination of oil reserves and productions. The decline in reserves is damaging the economy entirely within the nations and internationally. The elevating problems and challenges such as declining in oil reserves and productions leads to the concepts of alternative sourves of energy. The oil which was previously consumed in the production of energy is now facing a shortage.

Several alternative sources of energy that are emerging proved to be viable in a global sense over the longer term (Bentley, 2008). This is safely concluded on the basis of many reasons. The elecrticity produced and energy produced by renewable sources such as wind and thermal are promising over the long-term period in global ...