Could An Oil Revolution Happen Here? Part 2
Soaring prices, a struggling economy, will an oil revolution happen here?
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America’s weakness, and oil dependency, has affected oil exporters. The shock waves of our struggling economy, sparked by the ongoing global financial crisis, have had a ripple effect, including the collapse of the Arab regimes. With, the continuing crisis in Libya, we can expect a steady climb, in the price of gas at the pump. The more everything costs, the greater the chance of an oil revolution.
We all know that cars, ships and planes, and a large proportion of the trains in the world, are powered by gasoline or diesel fuel. Today’s, modern way of life depends entirely on these modes of transportation. Therefore, our dependency on oil will remain. History has taught us, that fear triggers revolution.
Will the high cost of oil, in our struggling economy, be the oil revolution trigger?
(See my earlier post, what’s FUELING high gas prices?).
In countries like the U.S., it is nearly impossible, to buy a loaf of bread, without getting into the car and driving to the store. Without, available oil, supplying the demand, rural area inhabitants, would probably starve. In the larger cities, like New York and Chicago, trains, sub-ways and high-speed rail, may run on electricity, but the supply of food, coming from the countryside, to the city depends on oil, to get the goods, to their destinations. Everything, in our economy, is dependent on oil. It’s our oil dependency, that could fuel another oil revolution, because of the soaring high prices of everyday necessities.
Here, in the United States, we consume, about one-quarter of the world’s oil production. However, for the first time, last year, the Chinese surpassed Americans, in overall consumption of energy (for all uses, and from all sources). The Chinese, are enjoying a newly developing world economy, that is robust and growing fast. As they migrate from the countryside, to the city and transition from bicycles, to motor vehicles, they need more gasoline and diesel fuel. Today, China consumes about one-tenth of the world’s oil production.
Potential Hot Sparks to Ignite An Oil Revolution
The Chinese demand for oil,perhaps more than any other factor, will dictate developments in the global energy market. This is due to their population, size, growth and development. Most of the oil produced in the Middle East, is already being exported to Asia – primarily to China and Japan.
Today, global oil dependency and consumption is now at a record peak of about 88 million barrels a day. Russia and Saudi Arabia, are the two largest producers. Together, they supply about one-quarter of the entire market. Saudi Arabia, has the largest proven reserves, and a known surplus production capacity. Production has increased recently, to supplement Libya’s current crisis. All the other oil exporters are pumping oil, at their full capacity.
Saudi Arabia’s reserves, and its production abilities are questionable, and cause for debate. However, our expectations that they have a never ending supply are the factors, that dictate the price and consumer behavior.
Oil Dependency, Oil Revolution, Can We Change?
The time has come for a change in our behavior, to avoid an oil revolution. Fuel produced from vegetation, natural gas converted into vehicle fuel, and/or electricity are three solutions. Electricity, has the most flexibility for further development, because its infrastructure can be set up easily, and nearly everywhere. While, Electric energy may not be the cleanest answer, it can be supplied from a number of sources, such as, from fossil fuels like coal and natural gas, and from nuclear reactors. We can look forward to the day,when technological breakthroughs occur, in the development of renewable energy, from the sun and the wind. Then, we can proudly say, electricity will be green and clean.
We know, that neither Electric or natural gas-powered cars, will solve our oil dependency problems. They can’t save the environment, stop air pollution, or put an end to global warming. In some ways, the benefits of electric cars, may be, both political and strategic, but not totally for environmental reasons. They, are a step in the right direction, but, they are not the total answer. We needed them 30+ years ago, when it could have made a bigger difference. It would be great to harness the wind, and have our vehicles run on solar energy. But, the OPEC nations, will keep supplying our oil dependency, until it is used up. They have the energy market cornered, so that whatever we decide to use first, after oil, they will be on top of that market, too!
We have energy resources here in the United States, that are readily available, and could put an end to our oil dependency. It’s time to make use of our own resources, and become a sustainable nation, independent of foreign oil. The sooner we take steps to independence, the sooner we put an end to a potential oil revolution.
