ALTERNATIVE ENERGY SOURCES TO PETROLEUM

Alternative Energy sources to Petroleum

Alternative Energy sources to Petroleum

Introduction

Countries and nations do not just merely stand in their geographic regions and demarcate the boundaries for their citizens. Nations do not run for themselves; rather, they have to be run by some elected or selected body of certain people who run the matters of the nation. Affairs and issues of the nations are various; ranging from managing the people to the allotment, management and dealing of the resources; balancing resources with the demands and keeping everyone contended.

Exploitation, allocation, management and distribution of the resources are one of the most important tasks of the governmental body. Social, economic and financial dependence of the country runs in a cycle in which one thing depends upon another. Nations depend on the industries for the economic stand and progress. They establish and run industries for continuous economic and financial production which subsequently goes into the processes of the nations.

National reserves of a country provide the basics for running the systems around the country. Gas, oil, water, coal etc are some of the many reserves which different nations utilize in order to run their industrial, business, economic and social sectors. Oil reserves entail and corporate both the kinds of reserves, whether oil or the liquefied products obtained from oil and gas fields. Closely related to the oil reserves are the gas reserves which are acquired from the fields of dry gas and certain oil fields that associate with the gas (www.dti.gov.uk, p. 1).

Nations classify the reserves into three different categories; namely, reserves, undiscovered reserves and potential supplementary reserves. The reserves which are already in use for the various functions of the nation are known plainly as the reserves. Potential, but still undiscovered reserves are the ones which nations have in plan to make use of but are still undiscovered. These reserves might be difficult to produce economically or financially by the nation or the country.

Oil and Gas Reserves

The oil and gas sector is one of the most essential contributors of a nation's economy. It contributes to the GSP and the total revenue of the country in many ways. Countries utilize oil reserves in industries and their development. These industries subsequently invest in the country's economy and financial status (Anonymous, 2013, p. 1).

Peak Oil Theory

Theorists and the researchers contend that oil has a finite nature. These theorists and geologists have strong beliefs on the finite amount of oil reserves. This limited amount and nature of the oil lead to what is known as the “peak oil theory”. This theory states that although oil is a natural reserve yet, the production and extraction of oil, all the world, will decline someday. This theory suggests that this will happen when around half of the current oil resources would have been utilized and extracted. The misconception in the theory is that, the theory does not reflect the ending of the oil reserves from the surface of earth; rather it contends that a time will ...