The Benefits Of Global Energy

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Energy is an integral part of our everyday life, yielding in an inseparable relationship between energy demand and economic progress. Driven by the two forces of population growth and the development of economics, global energy demand will continue to increase as people are interested in pursuing higher standards of living. For e.g., as per the international energy agency (2007), demand for world energy is expected to increase 50% by 2030.The conventional fossil fuels are finite; shortage of the same will be permanent and irreversible (Leder and Shapiro, 2008). There is a continuous increase in the prices of crude oil over the years (Exxonmobil, 2007). It may be noted that modern agriculture is totally dependent on petroleum, so the peak of …show more content…

But, as conventional oil becomes scarcer, the transport sector will remain dependant on conventional resources and non-conventional oil resources involve higher CO2 emissions per unit of energy produced than the conventional resources, as they require more energy to be extracted and upgraded (Grubb, 2001). Also, most of the renewable energy production techniques are related to the production of electricity, not liquid fuels, and so their impact in the transport sector is limited (De Almeida and Silva, 2009). The fossil energy is about 81% of the total commercial energy consumed in the world and about 98% of the energy used in the transport sector (IEA, 2007b). These percentages show that, we are depending maximum on the conventional energy sources (De Almeida and Silva, …show more content…

The US energy information administration (EIA) estimates that the 11organizations of petroleum exporting countries (OPEC) members—Algeria, Indonesia, Iran, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela—account for approximately 75 percent of the world’s conventional oil reserves and 40 percent of world’s oil production (US Energy Information Administration, 2006a). Saudi Arabian oil production is already at or near its maximum production rate, and it is likely to go into steep decline (Simmons, 2005). It may be noted that any economic imbalance among these countries may affect global economy, as all the economies are completely dependent on supply of oil and gas and other issues related to the same. These days, many countries are planning to become self sufficient and independent to make their economy free from global oil and gas price fluctuations. This can be achieved by exploring new oil reserves, targeting shell gas or implementing sustainable practices, which will serve the purpose to some

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