In the face of growing concern and awareness on Climate Change and Global Warming respectively, the Ukraine-Russia War have yet again reminded us of the reality that the future is still profitably bright for the Oil and Gas Industry. With an age of approximately 175 years, it is fair to say that the oil and gas Industry is still very much young in human time scale. Yet growing concerns on the impacts of fossil fuels on the environment have led to plans to curtail, or possibly extinguish dependence on oil and gas.
We have seen recent improvements made my countries in their bid for a greener carbon footprint – These improvements are mostly migrations of Electricity Sources from fossil fuel powered generators to the ones powered by Solar, wind, rain, tides, waves and geothermal heat.
The Future of Oil and Gas
Oil and Gas is a major source of energy, the Industrial and Technological boom was fashioned around power from fossil fuel. Apart from power plants, huge Industrial and Technological innovations rely on fossil fuel powered generators. Realizing an ecofriendly carbon footprint would surely require a thorough migration of these innovations to sustainable energy dependence. This requires a total rebirth of all machines and dependents of fossil fuel.
Such massive migration will surely take centuries to actualize, thereby giving the oil and gas industry enough time to thrive and even appreciate since oil and gas are finite resources.
Why is the Future Bright for Oil and Gas Industry?
The future is bright and hugely profitable for the oil and gas industry because the current dependence on energy from fossil fuels is too heavy to accommodate the spontaneous migration to renewable energy. While we will see gradual reduction on dependence, this could take centuries as more utilities arise daily. Oil and Gas will keep thriving despite the lows and highs because;
- The industry is still young when compared on a human time scale. This means there is still time to explore its utilities and even with time, technology may be able to harness its energy without harming the environment.
- Oil and Gas is a huge industry that supplies both monetary and civil support to billions of people worldwide. Cutting off such massive dependence without sustainable alternative is almost unrealistic.
- Migration of such utility technology could take centuries to actualize as some parts of the world will either lack the capital and resources for the infrastructural migration or even oppose it due to the returns from oil and gas.
- Oil and Gas are the easiest energies to harness. This ease of use will continue to play a vital role in its long-term utility.
What This Means
Understanding the bright future of oil and gas is a good metric for those that are contemplative of investing in the industry. It is also a good metric for national budgeting, especially for drawing futuristic maps. The ongoing Ukraine Russia war sent the price of oil to a 14 year all time high of 130$/barrel. As of the time of this writing, oil was Hovering around $130 a barrel and is already nearing its highest price in history—the all-time peak was in July 2008, when crude oil peaked at $147.02.
And if this conflict in the Eastern Europe’s sub-bloc could skyrocket the commodity’s price, imagine what could happen if the conflict spreads to other major oil and gas suppliers?
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