Oil & Gas: The Most Dangerous Crisis of All

opinion Essay
1596 words
1596 words

The Most Dangerous Crisis of All Black Gold Between rising demand for energy and the growing inability to increase energy production, a threat of economic collapse is approaching the global economy. The energy frenzy of the world has oil and food prices reaching historical records on a daily basis. The United States has historically been effective with action to prevent future breakdowns and turn them into opportunities. However, there has been a recent interruption in our nation’s capacity to understand the human and business concerns, and their strong relation to oil. How much time is left to sort these issues? In my report there will be a review of different options to relieve the supply and demand pressures on our energy supplies through the exploration of current consequences of our actions, oil alternatives, and awareness to energy consumption. Oil surpassed $130 per barrel in May of 2008, which depending on how they measure it, means that it is about 20% percent higher than the highs reached in the late 1970s and early 80s. In other words, this is getting serious. It is not the intensifying discussion of gasoline prices that we hear, but rather the impact that the price of oil is beginning to have on our nation and the global economy as a whole. If oil prices continue at this level or rise, there will be long-term shifts in how our economy works. According to Oliver (2008), the U.S. is the largest single consumer of energy on Earth. If the United States wants to remain as a strong nation (against other nations in the world) it must find its equalization for overcoming its biggest obstacles: Finding alternative sources for energy that will not trade one crisis for another and finding a way to become independently energy wealthy. Leeb, Phd, and Strathy (2006) states “Most authorities continue to reassure the public that today’s soaring energy prices are temporary, that oil reserves are virtually limitless, and that production will outpace demand for the remainder of our lives.”, and the group thinkers of all nations are inclined to believe in the declarations and honesty of their national leaders. However, unlike previous economic chaos that our world has faced, the price of oil has led to increased consumer fears. As a result the cost of money is rising and institutions that are less inclined to grant new loans, thus causing consumer fears to grow and spending to slow.

In this essay, the author

  • Opines that the united states must find its equalization for overcoming its biggest obstacles: finding alternative sources for energy that will not trade one crisis for another and becoming independently energy wealthy.
  • Opines that the price of oil has led to increased consumer fears, leading to a vicious circle repeating itself and the poor judgments of our nation to develop alternative energy sources.
  • Explains that while the u.s. is blessed to not be subject to volatility of food prices and allocation scares, it certainly has created some issues with food costs itself.
  • Opines that if the u.s. does not find an effective alternative source of energy, it must continue to expand the economy by other means than the expansion of industrialization.
  • Cites morrison, d. (2006, september 18). retrieved may 11, 2008, from university of minnesota web site.
  • Explains that society for science and the public, and ben harder, (2006). demand for ethanol.
  • Argues that the u.s. needs to rethink its actions in the development of new energy sources.
  • Cites strategic forecasting, inc.'s web site: united states department of agriculture.
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