Oil plays a significant role in the current industrialization and development of the international economies. Further, the commodity is vital to the functioning of the modern cities that substantially depend on the material in the transportation sector (Michael 2). Importantly, oil exploration accounts for one-third of the universal source of energy and over 95% in the transport sector that is deemed to have no substitute (Richard & Sorrell 1). Consequently, the product is developed from the residues of marine and other organisms that have taken more than a million years to decay. However, the demand for the good is increasing based on the rise in technological innovations globally. As such, the impact has affected the prices of the product worldwide, prompting the discovery of non-conventional oils such as oil sand and biofuels. Therefore, this paper explores factors that make the future of the oil brighter.
Supporting Arguments why the Future of Oil is Bright
According to Richard & Sorrell 11, oil products can be related to all the oil in a given land irrespective of being dispersed or accrued, exposed or undiscovered, and technically recoverable. In essence, as the demand for the material continues to rise numerous oil fields are being discovered in aid of attaining the international supply. Significantly, oil reserves are those oil capacities that are known in various fields and considered possible to mine under stated conditions (Richard & Sorrell 11). Considerably, oil commodities are categorized into diverse segments based on the physical oil and rock properties and the technology used during mining. As such, conventional oil entails crude oil, condensate, and Natural Gas Liquids (NGLs) while the non-conventional include tight oil, extra-heavy, sand, and kerogen oil.
Consequently, worldwide exploitation of the mineral averages 85.7 million daily amounting to 31.2 billion barrels yearly. Further, mining of crude oil is expected to grow based on the discovery of recent mines and formation of alternative unconventional oil products. Besides, the recovery factor of numerous sites can be enriched by the incorporation of enhanced oil recovery (EOR) systems like the use of steam injection, pumping CO2 inside the wells, and flooding of chemicals (Richard & Sorrell 3). Moreover, conventional oil has initially been recuperated by the vertical oil wells but currently, the mineshafts are diverged to flow through the reservoirs, hence, permitting entrance to the extreme end of the mines thereby facilitating greater salvage.
Moreover, based on the International Energy Agency (IEA) report, the development of new oil sites in the United States and other countries have helped in meeting the rising demand as numerous oil corporations continue to tap into different shale oil isolated regions (Brown 59). Besides, the international reserves are on the rise same with the universal production ratio, suggesting a minimal risk in the supply of the commodity (Richard & Sorrell 6). Therefore, the future of oil globally is bright since the level of reserves and the rate of discovery of new fields is increasing based on technological inventions.
Oil is an important commodity in the modern economy since it is used in a variety of sectors such as transport, agriculture, and industries. As such, the demand for the product has been on the rise leading to higher prices in the market. However, the future of the produce is brighter based on recent discoveries of new oil fields in America and other countries across the world. In essence, the explorations are projected to enhance the supply, thus, controlling the costs of the good. Additionally, the recovery factor of numerous sites is enriched by the incorporation of enhanced oil recovery (EOR) systems, hence, increasing its production and utility.
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Dittmar, Michael. “Regional Oil Extraction and Consumption: A simple production model for the next 35 years Part I.” BioPhysical Economics and Resource Quality 1.1 (2016): 7. Retrieved from: https://link.springer.com/article/10.1007/s41247-016-0007-7
Miller, Richard G., and Steven R. Sorrell. “Introduction: The future of oil supply.” Philosophical Transactions: Mathematical, Physical and Engineering Sciences (2014): 1-27. Retrieved from: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3866387/