Haggi 1
OIL 7
Abdullah Haggi
ENGLISH 2010
Shannon Branfield
Introduction to dependence on oil
The globe is witnessing a surge in the utilization of oil resources despite concerns for people to reduce dependency on the commodity on the basis that its poses negative implications on the environment and economy of nations. Considering that scholars have sought to reverse the norm for years, but such efforts have not succeeded, it is imperative to explore the issues to envisage the future of the globe concerning the utilization of oil as the primary source of energy for the automobile industry, as well as, in factories. In a bid to alter the prevailing situations, the paper identifies the sources of the problems from the commencement of the preference of the resources to the contemporary times. After which, the research will suggest solutions to the situation to make the world less dependent on oil. However, as things stand the world will depend on oil for many years to come.
Primary sources such as publications documenting the trends in the utilization of the resources will serve as the materials for the study. The reading will equally infer to books exploring the subject as well as reports documenting the situation in various parts of the globe. The qualitative approach will facilitate the process after which the findings will serve as the theoretical framework for quantifying whether the situation is acceptable or not, of which the paper acknowledges the increase in demand for oil. Throughout the process, nations that produce oil will serve as the reference for the study of the present and the future regarding dependence on the resource. The paper will also focus on the utilization of oil as the energy resources in various parts of the globe as well as the implication of the preference for the energy source out of the many alternatives such as coal and solar energy. Additionally, the article explores the motive behind the growth in the use of the commodity and ways for halting the growth.
Proposal of topic
Detailing the issue, aspect of focus, interests and anticipation of the topic
The interesting thing about the topic is that people are concerned with the increase in dependency on the resources known to pose dynamics on the social, political and economic sphere. It is interesting that there is still the preference for the use of the resource in the automobile industry, yet the dependence is risky for the sustainability of the global markets. The production is rising yet environmental activists argue against the use of oil on the basis that it contributes to the increase in cases of pollution on the ecosystem. Energy economists who include Greene (2004) also argue that dependence on oil destabilizes the markets thus causing political conflicts; hence, the need for people to rethink an alternative resource. It is also puzzling that nations like the United States and Saudi Arabia are doubling the production of oil as opposed to generating al ...
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Haggi 1OIL 7Abdullah Haggi ENGLISH 2010Shannon Bra.docx
1. Haggi 1
OIL 7
Abdullah Haggi
ENGLISH 2010
Shannon Branfield
Introduction to dependence on oil
The globe is witnessing a surge in the utilization of oil
resources despite concerns for people to reduce dependency on
the commodity on the basis that its poses negative implications
on the environment and economy of nations. Considering that
scholars have sought to reverse the norm for years, but such
efforts have not succeeded, it is imperative to explore the issues
to envisage the future of the globe concerning the utilization of
oil as the primary source of energy for the automobile industry,
as well as, in factories. In a bid to alter the prevailing
situations, the paper identifies the sources of the problems from
the commencement of the preference of the resources to the
contemporary times. After which, the research will suggest
solutions to the situation to make the world less dependent on
oil. However, as things stand the world will depend on oil for
many years to come.
Primary sources such as publications documenting the trends in
the utilization of the resources will serve as the materials for
the study. The reading will equally infer to books exploring the
subject as well as reports documenting the situation in various
parts of the globe. The qualitative approach will facilitate the
process after which the findings will serve as the theoretical
framework for quantifying whether the situation is acceptable or
not, of which the paper acknowledges the increase in demand
for oil. Throughout the process, nations that produce oil will
serve as the reference for the study of the present and the future
regarding dependence on the resource. The paper will also focus
2. on the utilization of oil as the energy resources in various parts
of the globe as well as the implication of the preference for the
energy source out of the many alternatives such as coal and
solar energy. Additionally, the article explores the motive
behind the growth in the use of the commodity and ways for
halting the growth.
Proposal of topic
Detailing the issue, aspect of focus, interests and anticipation of
the topic
The interesting thing about the topic is that people are
concerned with the increase in dependency on the resources
known to pose dynamics on the social, political and economic
sphere. It is interesting that there is still the preference for the
use of the resource in the automobile industry, yet the
dependence is risky for the sustainability of the global markets.
The production is rising yet environmental activists argue
against the use of oil on the basis that it contributes to the
increase in cases of pollution on the ecosystem. Energy
economists who include Greene (2004) also argue that
dependence on oil destabilizes the markets thus causing
political conflicts; hence, the need for people to rethink an
alternative resource. It is also puzzling that nations like the
United States and Saudi Arabia are doubling the production of
oil as opposed to generating alternative sources of energy. It is
equally interesting that the prices of the resources are on the
downward spiral at a time when the demand is on the rise. As a
result, it is complicated envisaging the future with regards to
demand for oil. As things stand, the possibility of developing
countries increasing the purchase of oil is inevitable.
Technological innovations create the opportunity to use
biofuels, but the rate of green energy adoption is not promising;
thus, making the situation puzzling (Greene, 2004). It would
have been motivating seeing nations to reduce importation of
the commodity, but such is not the case at present.
The paper will approach the issue chronologically from the
discovery of the resources that has become a problem to the
3. present situation in which the increase in demand is also an
issue. Afterward, the study will evaluate the factors that
influence the preference of oil among many other alternatives.
The study will also explore the implication of the use of the
resources on the economy of the globe, as well as the future
implications of dependence on oil. Likewise, the paper will
explore the environmental impact and the socio-political
implications especially in nations that rely on the sale of the
commodity for sustaining the growth of the economies. The
researcher will approach the study in sections. The first part of
the writing will explore the origin of the problems of the
utilization of the energy resources. After which, the study will
comment on the dependency of the resource as a major problem
to the globe. The exploration of the related problems and the
solution to the situation will follow. In the conclusive part, the
study will make recommendations on the situation in a bid to
make the demand of energy in various parts of the globe
sustainable. The objective in narrating the piece is inspiring
audiences to seek alternative sources of energy to help reduce
dependency on oil as the energy source preference for
industries. The article is also an argument on the dangers of
relying on the energy sources from a broader perspective.
Oil usage negative impacts
There lacks consensus on what constitutes too much when it
comes to the utilization of energy resources since time
immemorial. However, as thing stand the levels of demand for
petroleum have surpassed the rates of usage in the past decades
(Lefton& Weiss, 2010). As per the records of Center for
American Progress, the United States uses 1 billion a day in
importing at least 13.5 million barrels of the commodity.
Bromley (2005) adds that the automobile industry contributes
significantly to the exploitation of the energy. The figures for
percentage use of oil are high in comparisons to growth in
populations. Although factories also contribute to the excessive
use of the resources, the levels are way below the rates in the
automotive industry. The prevailing situation in the globe
4. suggests that every sector of the economy utilizes oil and such
is an indication of overreliance. According to Basedau& Lay
(2009), the use of the statement too much is based on the fact
that a nation cannot withstand the negative implication of the
utilization of the resources. For instance, the pollution levels
are surging courtesy of the use of the resource. The
transportation industry is completely dependent on the
commodity since any adjustments with regards to production
affect vehicle manufacturers and charges for fares.
Another indicator that the world is using too much of the
resource is that the supply from Saudi Arabia and the initial
OPEC member is enough to meet the needs of the globe, but
such is not discouraging the United States from investing in the
production of crude oil. As noted by Greene & Ahmad (2005),
the country is going to surpass Saudi Arabia’s production
capacity in less than two decades. The situation is an indication
that the growing human population is demanding a lot of energy
resources. The United States would not have engaged in
production if the demand was average. As noted by Basedau&
Lay (2009), the situation is attributable to the increase in the
manufacture of automobiles and the need for people to commute
to various places around the globe. In the future, the scenario
will likely replicate if corrections are not made at present.
The works of Fasano&Iqbal (2003) suggest that the situation is
a problem. The scholars evaluate the past in making the
assertions of which the reading insinuates that the
industrialization that begun in the turn of the 19th century is
responsible for the escalation of problems relating to the use of
oil. Before the era, industries relied on coal and firewood.
However, after the invention of the commodity, the preference
of people shifted to the energy resources and such developments
marked the beginning of the economic, social and economic
problems related to oil. As the population grew over the
subsequent decades, the problems compounded until the
contemporary times but unlike the past, the situation today is
appalling (Ross, 2001). This explains the need for caution in
5. approaching the issue since every sector of the economy is in
one way or another depending on the utilization of the resources
(Holdren, 2006). Theories have been put forward to insinuate
that the stability of the globe is dependent on the use of oil.
Using the case of the Gulf war, for instance, the assumption was
that Iraq was dependent on oil too much; hence, the cause of the
adverse impact on economic growth during the war. If the
dependency was not as much the nation could not have suffered
dire implications as the case witnessed at the time.
Another indicator that the usage of oil is too much is that the
demands by industries are way beyond the projections made few
years ago. As at now industrialized nations are using at least
half the imports from the Middle East. The share of the
alternative sources such as solar energy is way below the global
demand for the energy resources as envisaged in scholarly
studies (Benes, et.al. 2015). Based on historical records, the
past was characterized by the use of coal and firewood in
running the operations of industry and such was a cause of
concern to environmentalists worried over the exploitation of
forests. However, the present has brought different dynamics in
which the demand for firewood is a meager percentage of the
demand for other energy resources (Laherrère, 2003). Using the
similar analogy, the comparisons of the population and
utilization of energy resource suggests that people in the
contemporary times are demanding oil at higher rates, unlike
the past in which the demand for firewood was controllable. For
that reason, it is evident that the world is too much dependent
on the resources and such pose with its economic risks that
could threaten the stability of the globe.
Problems of dependency
Excessive exploitation of oil poses a myriad of challenges some
of which are contestable. One of the risks is that fluctuation in
demand and supply of the commodity affects prices of other
commodities in the global market. As a result, enhancing
economic stability becomes difficult in markets heavily
dependent on the production of the resources as the revenue
6. sources (Miller & Sorrell, 2014). The government incurs vast
amount of resources importing the commodity for use for
running state owner entities. In Saudi Arabia among many other
oil producing nations, the economic focus of the state is much
influenced by the levels of demand for the commodity in
overseas markets. The automobile industry, from car
manufacturers to suppliers is heavily affected whenever there is
new development in the oil business (Hughes & Rudolph, 2011).
Another realm that suffers directly whenever there is a shift in
prices of oil is the aviation industry that witnesses an increase
in fares as the cost directly relates to the supply.
The environment suffers the negative effects of pollution
attributable to the usage of oil. Unlike the past, there is
dilapidation even in regions unoccupied by human populations
where oil exploration is taking place. According to Ross (2001),
the atmospheric condition in China is appalling due to
overreliance of oil in industries. The state of California in the
United States has equally had its share of troubles in trying to
clear the air from pollutants emitted by vehicles in many of its
busy highways. In the Gulf of Mexico, a catastrophic situation
was witnessed during the BP oil spill in the Pacific oceans
(Crone & Tolstoy, 2010). The situation leads to the destruction
of the environment that led to the death of many sea animals.
The company recorded losses that destabilized the company
making it hard to advance internal operations (Laherrère, 2003).
An additional negative implication of oil demand increase is
that policies of oil producing nations are heavily influenced by
the activities in the international market (Crone & Tolstoy,
2010). The agenda is always maximizing to ensure the increase
in economic returns from the sale of the commodity.
Nations that lack sound governance structures suffer as a result
of the availability of the energy resource and such has been the
case in many African countries that are members of OPEC. The
government in the respective territories is unable to ensure
security of the warring factions seeking to control the resources.
7. In turn, the availability of the commodity becomes a security
scare and not a blessing to the local populations. The processes
of drilling the resources to meet the excessive demand of the
global populace degrade the land in oil producing nations
making it hard advancing agricultural activities or undertaking
construction. For offshore production, the aquatic life is
threatened by the process of drilling creates an imbalance in the
ecosystem. Another risk of engaging in the production of the
resource is that government channels the vast amount of
resources in the establishments of infrastructure for oil even in
situations where the funds could have helped revive other
sectors of the economy. It also becomes hard, inspiring people
to venture into professionals unrelated to the production of the
resource as the thinking of many is that oil business rewards
handsomely.
Dependence on the sale of oil has had adverse effects on the
growth of other sectors of the economy. For example, the
decline in the agricultural sector in Nigeria is attributable to the
focus on oil production. As a result, the country fails to reach
its potential in many other sectors (Fasano, &Iqbal, 2003).
Despite the negative associated with the exploitation of the
energy resources, the production of oil poses with it social and
economic benefits to nations endowed with the resources. The
United Arab Emirates and Qatar are examples of states that have
benefitted largely from the utilization of the resources. The only
thing required in other nations producing oil is enacting in place
policies to guide the exploitation and distribution of the
resources. Investments in alternative sources are equally
advisable since reliance on oil might pose dire consequences
(Fasano, &Iqbal, 2003). The subsequent negative implication is
that the competition for the clients of the resource creates
tensions amidst nations. As things stand, some Arab nations are
worried towards the advances of the United States in engaging
in oil production.
8. Solution
Even though the situation is some nations are not as bad as
pundits might suggest, there is the need to rethink the
utilization of the resources to guarantee the stability of the
globe for many years to come. The premise is that direct
correlations exist amid global instability and increase in
demand for oil since the activities of the markets are directly
affected by the dynamics of the demand and supply of the
commodity. For that reason, the first alternative should entail
advancing studies to understand the motive behind the
preference for the use of the energy resources at a time when
there are technologies that could facilitate the production of an
alternative to the energy supply. After which, the stakeholder in
the business who include government should discourage
dependency on oil by coming up with an alternative such as the
use of solar energy through the production of electrically
powered vehicles.
The second option should entail formulating policies that
regulate the production and supply of the commodity in
developed nations. The process requires much collaboration
amidst all the stakeholders since the exemption of one party
9. will automatically lead to the failure of the strategy.
Subsequently, the sensitization of the population on the dangers
of relying on the energy source is necessary (Hughes &
Rudolph, 2011). The process can take a varied approach with
learning institutions steering the process. The media should
serve as the primary tool for the conveyance of the messages.
Institutions such as the IMF should advise economist on
respective countries on ways for sustaining economic growth
using alternative sources of energy.
Continuous advancement of studies seeking to reverse the norm
in which industries depend on oil products should be pursued
(O'Rourke & Connolly, 2003). Scholars should present
publication on international forums about the dangers of the
utilization of the energy resources in a bid to encourage people
to rethink strategies regarding the exploitation of the resources.
Government funding research on alternative sources of energy is
also a step towards reducing overexploitation of the resources
that causes a threat to the economic stability of nations that
depend on the exportation of the natural resources.
Conclusion and recommendation
Exploration of issues regarding utilization of oil requires a
comprehensive approach since the quantification of people on
what constitute much varies. In some nations, the ‘much’ is
insignificant since the average consumption superseded the
quantities supplied elsewhere. Therefore, before making
10. assertions of what amounts constitutes excess, it is advisable
exploring the issues independent of use, of which the paper
suggests that demand is on the rise (Maugeri, 2006). The
situation is more prevalent in developed nations as per the
records of importation and exportation of the substance.
On that note, it is advisable formulating alternative that
accommodates the divergent views of many countries since oil
will still prove essential as an energy resource. An example of a
practice entails encouraging companies to reduce production as
a measure of enhancing sustainability while encouraging oil
dependent nations to seek alternative sources as a strategy for
diversification. After which, individual countries should work
with an environmental lobbyist in devising ways for addressing
the situation (Urry, 2013). The media should steer the role since
the communication tools affect the perception of people which
in turn influences behavior regarding utilization of energy
resources.
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