THREE GOOD REASONS WHY THE OIL AND GAS SECTOR WILL COLLAPSE
I know many readers are wondering and asking themselves questions on this subject, but currently the oil and gas sector is facing a threat from different aspects both industrial and non industrial. I have clearly explained exhausted all the answers you need and it has been summarized below.
1. Competition from solar and other non renewable sources of energy like bio-fuels, wind energy and hydro electric power. These sources of energy are clean, cheap and forms the best alternatives for petroleum.
Hydrocarbon emissions like carbon-dioxide and sulpurdioxide. These are green house gases meaning they form a thick blanket in the atmosphere preventing radiations reflected from the surface of the earth from being dispersed into the exosphere. The thick blanket formed results to an increase in the global temperature a phenomenon known as global warming.
Carbon-dioxide and Sulphurdioxide are soluble in rain water and forms carbonic and sulpuric acids respectively . Acidic rain corrodes buildings constructed out of marble products and also corrodes the surface of plant leaves.
For that reason, the oil and gas sector will continue facing a fight from environmentalists and this will affect the global output of crude within the next 30 years.
2. The oil and gas sector suffer from several series of downturns in prices, Currently the price of crude oil per barrel stands at a value above 70 dollar per barrel but it has been even 37 dollar per barrel three years back.
The oil price is affected by geopolitical factors where states fight to keep most of the pennies to them selves. The Americans love it when the crude oil prices are low because it is not going to buy all the dollar and the American bank will have to print less notes.
Though it is a contrary with Saudi Arabia, it will want to buy all the dollars cheaply using crude oil and back up her local currency. The OPEC countries fight tooth and nail to keep the oil prices up but this struggle can not be realized with most countries like China taking greater interest in the electric cars rather than producing cars with petrol and diesel engines.
3.Remaining reserves.
Most of the reserves have been discovered and what does that mean, very little is left for discovery. The available reserves are now the ones which are in the deep seas and in open ocean water which are very expensive and risky for exploration. By the time the oil companies think of exploring such wells, the oil sector will be in turmoil and out of crude oil to meet the current global demand.
Simon Apil.
STUDENT OF PETROLEUM GEOSCIENCE AND PRODUCTION
MAKERERE UNIVERSITY
1. Competition from solar and other non renewable sources of energy like bio-fuels, wind energy and hydro electric power. These sources of energy are clean, cheap and forms the best alternatives for petroleum.
Hydrocarbon emissions like carbon-dioxide and sulpurdioxide. These are green house gases meaning they form a thick blanket in the atmosphere preventing radiations reflected from the surface of the earth from being dispersed into the exosphere. The thick blanket formed results to an increase in the global temperature a phenomenon known as global warming.
Carbon-dioxide and Sulphurdioxide are soluble in rain water and forms carbonic and sulpuric acids respectively . Acidic rain corrodes buildings constructed out of marble products and also corrodes the surface of plant leaves.
For that reason, the oil and gas sector will continue facing a fight from environmentalists and this will affect the global output of crude within the next 30 years.
2. The oil and gas sector suffer from several series of downturns in prices, Currently the price of crude oil per barrel stands at a value above 70 dollar per barrel but it has been even 37 dollar per barrel three years back.
The oil price is affected by geopolitical factors where states fight to keep most of the pennies to them selves. The Americans love it when the crude oil prices are low because it is not going to buy all the dollar and the American bank will have to print less notes.
Though it is a contrary with Saudi Arabia, it will want to buy all the dollars cheaply using crude oil and back up her local currency. The OPEC countries fight tooth and nail to keep the oil prices up but this struggle can not be realized with most countries like China taking greater interest in the electric cars rather than producing cars with petrol and diesel engines.
3.Remaining reserves.
Most of the reserves have been discovered and what does that mean, very little is left for discovery. The available reserves are now the ones which are in the deep seas and in open ocean water which are very expensive and risky for exploration. By the time the oil companies think of exploring such wells, the oil sector will be in turmoil and out of crude oil to meet the current global demand.
Simon Apil.
STUDENT OF PETROLEUM GEOSCIENCE AND PRODUCTION
MAKERERE UNIVERSITY
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