William Michael Sponheimer
PSC 1121: Physical Science
Dr. Daniel Britt
Extra Credit Paper
The Future of the Oil Supply
Throughout our lifetimes there has been one thing among others that our society and our world depends on in our everyday lives, oil. Oil is one of the things that help our world function in a way other natural resources haven’t been able to. Oil powers our cars, planes, trains, boats and other vehicles that enabled us to travel around the world in a more efficient and quicker time frame. Oil helps us to run our appliances at homes and at our jobs each and every day. There are wars being fought as we speak around the world over control of the lands where oil is due to the fact that it can bring immense wealth and power to those who own it and are able to sell it in the global market. It is up to us as a society to use our resources in an effective way in order to ensure that generations of people after us are still able to utilize the comforts that an ample oil supply brings to our lives as well as begin to develop new technologies that can be used in our everyday lives that do not require the use of oil. With all that being said, the ways that oil impacts not only our lives but the lives of all the people around us, in ways that most may not even realize, one thing is a definite, once we run out of oil its gone and its not coming back.
From all the way back to as early as the 1980’s and even before then, there have been conflicts between countries for lands that control oil because simply controlling oil will give you limitless power and with that power will bring prosperity and wealth to those in control in the future for many years to come. The Middle East and countries like Saudi Arabia are filled with oil deposits in the Earth that they are constantly selling to everyone around the world. One thing is certain, when the exports of your country are comprised mainly of a natural resource that will soon be gone you better have a contingency plan of action for ways to create money once its gone. “One of the biggest events in the history of the oil industry happened in February of 1945, when one of if not the greatest twentieth century strategic relationships was formed between Saudi Arabia and the United States of America. The Saudis agreed to supply cheap oil to the global markets in exchange for American protection (OxfordJournals.org).” This relationship ensured that the world would be able to receive one of the most valuable natural resources that has ever been by receiving protection from the world’s greatest military superpower and therefore protecting the future of the oil supply to the world for many decades to come.
Now it is not always sunflowers and rainbows when it comes to the oil industry and there are limitless potential risks that can be associated with this but primarily the number one risk with oil would be the geological location of oil deposits. “Geological risk can simply be broken down into two main subcategories: the difficulty of the location of extraction and the possibility that accessible reserves in any deposit will be smaller than estimated (Investopedia.com). The risk vs. reward when it comes to searching for oil can pay off in an extremely beneficial way that can set companies and countries off financially in the future for many decades. Many oil deposits can be found in the oceans, hundreds of miles away from the nearest land and many miles deep from the surface of the water that can complicate the process of extraction. In order to be very successful in this world you have to willing to take big risks in order to win big so companies spend lots of money searching for oil in the hope that one day they will find an oil deposit that they will be able to sell from to the global market.
According to the United States Energy Information Administration, the amount of crude oil that is left in the world will only last us for the next twenty-five...
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