The need for using alternative en-ergies is gaining momentum across the globe, thanks to soaring oil prices and the consumers' insatiable demand for energy. Rampant pollution, increasing energy prices and a decreasing supply of fossil fuels have only added to the belief that green energies hold the key to a secure energy supply in the future. However, the alternative energy industry still has a long way to go with lesser scalability, low installed base and relatively higher costs of production.
The International Energy Agency's (IEA) report on the global oil market indicates that the demand for oil was 83.30 million barrels per day (mb/d) and is expected to increase by 1.78 mb/d in 2006. It further notes that the impact of the growing demand from countries' like India and China will be responsible for the future changes in the global oil demand. Recent calamities like Katrina and Rita have left the supply-demand equation on tenterhooks, affecting refinery plants and oil fields ability to match the demand. Spending a huge $4 bn on oil alone everyday, the world is now habituated to energy from fuels, which are hard to find and highly impossible to replace. Powering vehicles, lighting and heating homes, the non-renewable energy sources have profited energy companies in billions of dollars but have left a deep impact on the environment. This is the right time that the Green Energy is given its due credit in keeping the environment clean. Peter Tertzakian, Chief Energy Economist and Director, ARC Financial says, "The prospects for green fuels that can directly displace petroleum products are pretty good right now, with oil prices at $60 per barrel." More alarming is the deep relation that these non-renewable energy sources have with the economies across the globe. Fluctuations in the energy industry have always had, and will have a great impact on the economies of these countries and most importantly the lives of their people.
Meeting 40% of the world's energy demandoil also caters to a significant portion of global transportation business needs. Geographical disparity of oil production has led to severe tensions and fragile agreements among oil exporters and importers. These agreements are in danger of breaking at the slightest provocation, from both political and market forces. With the global oil production expected to peak around the year 2010-2015, it would lead to more turmoil in the global economy. However, it's the developing countries that are hard hit with the rising prices of oil having a huge impact on their growth. Emerging economies with their insatiable appetite for energy only accentuate the need for developing and using alternative sources of energy that are clean and help keep the environment green. |
