Further, there have been adverse effects on the environment from using oil. In the last fifty years, industrialization across the world has led to increases in carbon emission, depletion of the ozone layer, melting of ice caps and a general decrease in the quality of life. Besides this, oil is a non-renewable resource. This means that its quantities on earth are limited and will at some point be depleted. This makes the use of oil as a source of energy unsustainable and unreliable. Herald (12) uses the phrase ‘Peak Oil’ to describe the time when the world will reach its peak oil production. This will subsequently lead to decline in oil production and the rise in oil prices, causing a significant, yet unpredictable impact. At the moment, some of these consequences are already being experienced in the world. The amount of oil being produced surpasses the amount of new oil supplies being discovered. This indicates that the peak oil stage is fast approaching. With these facts in mind, there is a greater need to shift the world economy to one that is dependent on renewable energy sources that can be replenished and which do not harm the environment. The following is an evaluation of the significance of this transition and its link to the economic and political processes of the world and the effects of this new venture on the world climate. To avert the effects of oil shortage on the world economy, there have been collaborative efforts to focus on alternative energy sources. These are other sources of energy besides fossil fuels. According to Michaelides (20), what constitutes to an alternative energy source is still being debated. However, the idea behind the term refers to any energy source that is environmentally friendly and not necessarily renewable. Some of these sources include wind, solar, ethanol, hydroelectric power, geothermal power and nuclear energy. These sources have enormous potential and they are able to meet the world energy demands many times over. Their uptake despite being on the increase over the years has not yet surpassed that of traditional energy sources. Combined, these sources contribute up to only 20 percent of the world energy demand currently. Wind has been one of the best alternative sources which have become a competitive energy source in the world. It is preferred because is clean energy source and produces no pollution in generating power. Its rebirth was particularly focused on after the 1970 oil crisis. This saw a lot of research being conducted to harness wind and to improve wind turbines. Much more needs to be done to promote the use of wind energy such as the reduction of the cost of equipment, better policies to address the competitive land use and availability of distribution and transmission channels. Energy generation from wind is facing a challenge because it relies on high wind speeds, a factor which is not easily attained in densely populated regions. To tackle this hurdle, countries such as the Netherlands are opting to set up wind stations in areas which are far from the population although this requires for increase in distribution costs. Some of the countries that have fronted wind energy and encouraged its use include Spain, USA, Denmark and Germany. Wind energy is fast growing as a replacement for oil and these governments are giving incentives to encourage this
Name: Instructor: Course: Date: Evaluation of the Transition from Oil Based World Economy The source of energy is one of the biggest challenges facing the globe today. There has been a heavy dependency on oil in almost all sectors of economies the world over such as transport, manufacturing and household use among others…
The paper concludes with the suggestion that public policy is shaped significantly by interest groups, and in industrialised democracies those interest groups are often the largest users of fossil fuels, and consequently most likely to be contributing to climate change due to carbon emissions – the very aspects the government is being called on to manage and reverse if the planet is to survive.
According to the paper the concept of sustainable development found in the topic of environmental conservation, is a well known international issue, found in various aspects of international legal instruments which relate to economics, human rights and environmental issues. Even though, this concept is not explicitly described, it has indeed become a crucial factor towards the development of international environmental policies, and as having critically influenced the existing policies on environmental issues.
Saudi Arabia has been reassuring the world about the enormity of oil reserves in the capacity of owner of the biggest oil terminal in the whole world i.e. Ras Tanura (Maass 1) while the world has generally remained skeptical about the assertions of Saudi Arabia.
The problem with oil has been its reliability in terms of supply and price, with the latter often experiencing abrupt changes because of crises in exporting countries (on a national and international nature). Moreover, the fact that oil is a natural-occurring commodity threatens its perpetual supply.
These major shifts have obviously been facilitated by global connectivity. Radical transformations in the way businesses are carried out have become possible with Internet and other technological developments. The globe has shrunk and businesses are competing on larger platforms.
The supply of these resources is supposed to be controlled by the economic factors. However, other than the economic factors non-economic and political factors have also played their part in bringing unsteadiness in the oil prices. There are different developments that have affected the political economy of oil.
The main advantage is low cost and environmentally friendly design of collectors. Thesis Wind energy is one of the most cost effective solutions to traditional resources like coal, oil or nuclear power.
The threat of future shortages of liquid and gaseous fossil fuels can be relieved to some extent by converting coal to oil and gas.