The World Running on ‘E’: The Coming Oil Crisis
The world is facing a coming oil crisis. Known oil reserves are only prepared to meet today’s global demand for another 40 years. If we stay on the course we’re on now, gas prices will only get higher. It’s important to search for fuel alternatives and sustainable energy sources, and countries will likely need to use industry taxes and international regulations to make alternative energies competitive.
Free Car Insurance Comparison
Secured with SHA-256 Encryption
UPDATED: Jan 19, 2021
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance related. We update our site regularly, and all content is reviewed by car insurance experts.
While it’s unlikely we’ll find ourselves using up the last drop of the world’s oil anytime soon, we are nearly guaranteed to face a shortage of cheap and accessible oil in the coming century.
Known oil reserves are only prepared to meet today’s global demand for another 40 years. And two indicators suggest that we have even less time than that.
One, anyone charting the rising middle classes in China and India can tell you, global oil demand is growing. Without new sources of energy, today’s oil supplies will not meet tomorrow’s oil demand. And second, figures for proven oil reserves aren’t so proven.
Reserve figures are reported by global oil suppliers that have heavy incentives to exaggerate their reserves. Healthy global reserve estimates help to reassure investors and stabilize volatile prices.
The world’s largest oil supplier since the 1980s, Saudi Arabian ARAMCO, has reported no major oil field discoveries in thirty years. Even so, the company’s reported reserves have barely changed in decades.
So, what alternatives are available to us?
As of now, there seem to be only two options. Both will require serious changes to most global lifestyles.
First, we can stay the course we’re on now and pay more for oil. We’ll continue to develop expensive and destructive oil extraction methods. Prices will rise until today’s high consumption lifestyle will be accessible only to the very rich.
The second and brighter alternative requires a global collaboration to wean the global economy off of oil. Nations and industries worldwide will need to prioritize sustainable energy development. We’ll use industry taxes and international regulations to make alternative energies competitive.
Whatever global consumers decide to do, one fact is unavoidable: the price of oil, and energy in general, will be higher.