Automotive producers, environmental activists, organizations and consumers are all involved in their own way to the future source of fuel in our vehicles.
The oil-producing countries, both within and outside OPEC, has become extremely wealthy, because the happy fact that huge quantities of crude oil on their territories. The company, to refine, transport and delivery of finished products to the consumer has become global, super-rich money machines. Governments have the tax revenue from the consumer to finance a large part of their expenditure. The consumer has become accustomed to the car and the convenience of possession of one or perhaps more. Industry has become dependent to a large extent on motor transport opportunities for distribution.
However several factors are now on the happy circle of satisfied suppliers and consumers, and these factors are forcing some serious discussion on the future direction of transport in general, and fuel -- For motorists in particular.
Supply and cost of raw Oil.
The traditional oil-producing regions like the Middle East have made it quite easy with benign conditions for the oil industry. The same could be said for the early days of oil production in the United States. The reserves were enormous and the conditions under which the wells were drilled and the production and delivery were relatively cheaply.
Surveyors and engineers found more vast offshore reserves, for example in the Gulf of Mexico and from there into the North Sea. This was for a different, more costly engineering challenge. The cost for the construction and operation of these fields was that much greater. However, the price of crude oil has increased it economically viable to extract these more difficult and therefore more expensive, reserves.
There is an interesting paradox, represented by the fact that although we are extracting oil in a greater and greater rate of actual reserves are actually increasing as well. It should also be understood that not all of the so-called reserves are indeed achievable at this point in time.
There are some large reserves, which is very difficult to extract and as a consequence very expensive. An example would be the oil shale and sands of Canada. While not denying the size of the reserves, the energy needs of radiation, transport, crushing, heating, etc., along with the safe disposal of huge quantities of waste, are large, not to say very expensive.
However this kind of Costs could be justified by the increased price of crude oil on the world market. In other words, these reserves are not economically recoverable at this time, but may be the case if the price increases enough in the future.
Demand for oil and products.
The ultra-rapid growth of developing countries like India and China places huge pressure on world the supply of oil, as these economies to absorb enormous amounts of petroleum products. Their governments are looking for more prosperity for their people. The Indian and Chinese companies are growing very rapidly, due to their low labour costs exporting prices are in an ever-increasing rate in the developed world, and they will continue to grow for at least the medium term. These countries are looking to their living standards up to those of the United States and Europe, and there is no way this will stop. These big countries and peoples, the consumers of tomorrow, and that means energy consumption and transportation.
Environmental concerns.
The scientific theory of global warming and climate change can not be denied. Or something concrete - the evidence is overwhelming, so that theory can not be denied. This will have a major impact on all spheres of life and governments and commercial companies are both to a certain degree, to prepare for some changes. With particular regard to the amount of emissions from automobiles.
Combination effect
When these three elements together you get a devastating combination, while oil is more expensive to extract and less available, the growth of demand in the growing countries means the law of supply and Demand will fuel higher prices and, finally, the environmental concerns of car emissions will require that we all look at alternatives to petroleum products to power our cars.
Where does it all lead?
The world is now in a situation where, because this pressure is already out there is a search for different fuels.
Some these fuels and their sources are easily identified and some are not so easy. Some fuels meet most of the requirements of availability, low cost and low emissions, some are marginal. Some products will require a major technical change, before they can be used on a large scale, some are alternatives to today& 39;s technology.
Peter Griffiths holds a Ph.D. in chemistry from the University of Cardiff. He was a sailor and marathon runner. He is a retired entrepreneur and he is passionate, and in the research, energy conservation and the dangers of climate change. Learn more about www.savefuelsavemoney.co.uk
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