The Resource Industry

Sitting in a cafe in the middle of winter, looking outside as the temperature is well below freezing, I’m beginning to wonder where we’re going to get our energy from in the future, and after we get it how much it’s going to cost. The media has been reporting that the world’s oil reserves are dwindling at an enormous rate in large part due to the staggering growth in China and India. I’m not an expert in the field of energy or population growth, but doing some simple math supports much of the media’s views.There are roughly 6 billion people on the earth. There are 1 billion people in India and over 1.5 billion people in China, would you agree with that? That’s roughly 35% of the earth’s population, and these two country’s need energy more than they ever have, with no end in sight.Thirty dollar oil is now sixty dollar oil—Some people may call it a “doomsday” theory, but Hubbert’s Peak Oil Theory generally states that there is a finite amount of oil in the ground, and at some point there won’t be enough unrealized oil reserves to support future demand. Many experts on the subject believe that we’ve passed this threshold. In laymen terms, we are in deep, deep trouble. The world does not have enough oil. A news site that beautifully illustrates where the business of oil is, and where it’s going, is Peak Oil. Many companies, scientists, and theorists are trying to find a new form of energy to take the place of oil. We all know of dozens of potential energy sources, but is there one which will be profitable and even more importantly, viable? Alternative Energy is a leader in compiling information about this topic. My opinion is that until a company can find a profitable way of creating alternative energy on a mass scale our dependency on oil will be as strong as ever.