For many, oil is considered a precious commodity that drives the global economy and sustains human life in an increasingly independent world. Central to this idea is the global energy system, which is something billions of people rely on daily, from both the social and economic perspective of humanity. Currently, there are many signs that suggest that oil supply and demand is fundamentally healthy. Oil stocks in major consuming countries are at sustaining levels and reveal that the global economy has more than enough supply to meet demand. But for how long and at what price will the world continue to rely on a single energy source, such as oil, to fuel our cars, power our factories, and run the day-to-day operations that keep man kind moving forward?
Facts about oil
In reference to a case study created by OPEC’s World Energy Model, in 2006 the total world demand for oil per day was recorded at 84.7 million barrels. This means that on average during any given year the world consumes 30,915,000,000 trillion barrels per year. “This number is expected to rise to 96.1 million barrels per day in 2015 and as much as 113.3 million barrels per day in 2030.”
A look ahead
In the last 30 years, oil has become the greatest influence upon economies, industries, politics, and stability of every nation in the world. Countries like the United States, Europe, China, and even Russia have dramatically changed their foreign policies toward various oil producing countries. The heart of each of these policies are meant to reduce costs and allocate how oil supplies are used up depending upon a countries rules and regulations. As this global oil dependency continues to grow, countries are now seeking to find other alternative fuels to reduce import costs and increase domestic dependency for major business operations.
Today, there are more than a dozen alternative and advanced fuels in production. Although government-regulated and voluntary private fleets continue to be the primary users of these fuels, consumers are showing a growing interest on their impact domestically. Some examples include:
Ultra-Low Sulfur Diesel
Gas to Liquids
Hydrogenation-Derived Renewable Diesel
Some of the fuels are produced domestically, reducing our dependence on imported oil, and some are derived from renewable sources. To promote alternative fuels, some federal governments offer tax incentives to consumers who purchase alternative fuel equipment.