The oil industry which is a synonym for the petroleum industry has been in operation for the better part of a century. The industry includes processes such as exploration, refining and the transportation of petroleum products. This industry also employs a large number of people on countries or regions that specialize in this field. There has been speculation in recent years that the oils wells will dry up in 40 years, which will in turn leave a commodity vacuum in the world economy.
Oil, the commodity
Crude oil is a vital commodity. It is the life-blood of the petroleum industry. It provides much needed energy and it is the indispensable component in the manufacturing of petroleum products. Taking into consideration the sheer amount of energy that stems from crude oil it isn’t difficult to fathom just how profitable and valuable oil is to the world. Massive corporations have been built on this commodity. They in-turn employ a massive labor force, further contributing to the economy.
Oil, though being very profitable, its usage and extraction causes a wide array environmental problems. We live in an age where sustainability is being considered more than profit. Sustainability in the case of the usage of oil the cons vastly outweigh the pros. This means that oil as a commodity causes a lot of harm to the environment. The most prominent form of pollution is oil spillage which happens more times than you could imagine. Oil spills can pollute water sources. This includes streams and rivers which are the mundane water sources and habitats on this planet. In some cases oil spills can also soak into the soil and rock, this can lead to the pollution of groundwater. The pollution of water sources leads to the harm of entire ecosystems. Since some animal species live in these water sources they get wiped out.
The oil wells as it turns out are drying up faster than anticipated. When a drilling expedition takes place, there is a projection that is done to estimate the amount of oil that can be harvested. As it turns out in some cases such as the Permian Basin their projections fell short of the estimations. With the oil well running dry and not yielding the expected amount of oil. This is just one of the many examples. Some predictions speculate that the majority of the oil wells will have dried up in 40 years.
What does this mean?
The first concerning factor that can be derived from the oil wells drying up is the termination of jobs. This will lead to a unemployment epidemic. This will not only affect the drilling companies but it will impact the companies that use oil to manufacture their products. Another aspect to consider is the supply and demand curve. Supply and demand will fluctuate as the shortage of oil becomes apparent.