The Supply and Demand of Energy and Oil

Better Essays
Thomas Edison invented the light bulb in 1879. The first oil well was drilled in Pennsylvania in 1859. Since those two historic discoveries, technology and industry have exponentially grown to a point of absolute necessity today. The requirement of energy and oil throughout the world grows with advancement. As developed countries, like the United States, Japan, China, and Canada, progress and grow in population, more demands for energy and fuel are created. Likewise, as less advanced countries bring themselves into the global economy, they will also have increased energy and oil demands. So then the question begs, where are the resources for these demands coming from and what options will there be for future demands? Given current needs and forecasting the global needs of the future, a brief economic analysis will show what the world is up against.

Energy and oil have a direct relationship. Energy is the electricity, heat, and fuel needed to power all the aspects of human lives. Oil itself is the main resource for energy, contributing 37% to the global energy supply. Specifically, oil as a source of fuel is used to power the majority of transportation throughout the world. However, it also has significant use in heating and making electricity. There are many other sources of energy as well. The second largest provider of energy is coal, which accounts for about 25% of the world’s energy consumption. Gas covers 23% of the energy need. Other sources include nuclear power, biofuels, hydro power, solar heat and light, and wind. All of these forms of energy contribute to the global energy supply, with oil being the most heavily relied upon.

Now the world faces a problem. The top three energy providers, accounting for about 85% of the word’s current energy supply, are non-renewable fossil fuels. Primarily, oil is at a premium because of political unrest (rightward shift in supply), reserves are at the beginning stages of drying up (rightward shift in supply),

You May Also Find These Documents Helpful

  • Better Essays

    Addicted to Oil

    • 1208 Words
    • 5 Pages

    The United States uses nearly a quarter of the world’s oil. This would not be a problem if the U.S. had a large oil reserve but it only has 3% of the world’s reserves for 4% of the population (Pickens). This huge dependence on oil is costing us economically and also threatens our dreams. The United States needs to become more energy independent by using sources other than oil. Many alternative sources are available but renewable sources provide the brightest future.…

    • 1208 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Rodman D. Griffin’s article entitled “Alternative Energy: Can Renewable Energy Sources Replaces Fossil Fuels?” is about alternative methods of getting energy. The article goes into great detail of how America has gone into such an increase in using oil and other non-renewable resources. America spends billions of dollars a year on oil and gas to fuel the countries working class. This was incorporated in my paper along with other facts that Griffin uses throughout his article. His article gave me insight to the crisis that we face everyday and a new wave of thinking when it comes to alternative energy.…

    • 2056 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    Fossil fuels are currently the most widely used source of nonrenewable energy in today’s society. These sources of energy are used to generate power for both commercial and personal use in a number of different ways. “In 2005, more than 3/4 of total world energy consumption was through the use of fossil fuels.” (Environmental Literacy Council, 2008) Oil, the leading energy resource depended upon to fuel everyday functions produces 43.4 % of our world’s energy. Natural Gas, the second most relied upon resource produces 15.6 % of the world’s energy followed by coal, which produces 8.3 % of the world’s energy. Unsurprisingly, North America is the number one consumer of nonrenewable energy resources, consuming approximately 25 % of the fossil fuels extracted from the earth. (Environmental Literacy Council, 2008)…

    • 1927 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    It is obvious that the demand for energy and fuel sources is increasing drastically as time goes by. The United States also anticipates an oil demand increase as the population grows over the next few decades (Haug, 2011). Therefore, the big dilemma is whether or not the search for oil on our land should continue. The recent development and expansion of clean energy resources, although expensive, can end the battle over oil deposits and lead the country into a cleaner future.…

    • 476 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Drill or Not to Drill

    • 511 Words
    • 3 Pages

    Although the United States (U.S.) is the third largest for oil producing (the U.S. produces 10 percent of the world’s oil and consumes 24 percent), most of the oil we use is imported. The U.S. imported about 60 percent of the oil consumed in 2006 (Baird, 2008). About half the oil we import comes from the western hemisphere. Oil imports contribute heavily to the U.S. trade deficit, and the U.S. is forced to make political decisions that it might not make otherwise if they were not so dependent on other countries (Baird, 2008). With this said I have made my decision to agree that the U.S. should invest in alternative sources of energy, such as wind and solar power because this will allow us to become less dependent on other countries for our oil supply.…

    • 511 Words
    • 3 Pages
    Good Essays
  • Best Essays

    solar energy paper

    • 1239 Words
    • 4 Pages

    Nersesian, R. L. (2007). Energy for the 21st Century: A Comprehensive Guide to Conventional and Alternative Sources. Armonk, New York: M. E. Sharpe.…

    • 1239 Words
    • 4 Pages
    Best Essays
  • Good Essays

    At the turn of the twentieth century, the United States used coal, oil, and wood as a natural resource to produce energy. Around the beginning of the twenty-first century, those same energy resources are routine today as they were a hundred years ago. The U.S. has refined our ability to use new sources of energy that we have discovered over the last hundred years. However, “Annual consumption of petroleum and natural gas exceeded that of coal in 1947 and then quadrupled in a single generation. Neither before nor since has any source of energy become so dominant so quickly” (“Peacock”). With time the population’s need for more energy was in high demand.…

    • 698 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Gas production and oil are the main sources of energy. Gas fell from 9400 million cubic feet to 6600 million, it is said that gas imports will rise in the future and new techniques are being used to extract more oil, Miller oil field in Scotland is expected to extract more than £40 billion worth of new…

    • 651 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Many people are debating how to best meet energy needs in the United States. Some argue that the country must decrease its dependence on oil and invest in alternative sources of energy, such as wind and solar power. Others argue that changing to new power sources is unnecessary and expensive. They state that the United States should search for oil in Alaska, the Gulf Coast, and other currently unexplored areas within the country. I will state my opposition on this issue.…

    • 637 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    1. Select two companies whose product(s) you use in your daily life. You may choose any firms you wish, as long as their information is publicly available (as to their products and financial information) and they are known to the average person.…

    • 2125 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    The U.S Benchmark sets the oil prices depending on the supply and demand. Gas and oil prices are rising and falling so much because of the number of investors, and the demand among the American people.…

    • 1656 Words
    • 7 Pages
    Better Essays
  • Best Essays

    With the level of industrialisation the world faces today there is an ever increasing demand for oil, coal and other sources of energy to fuel a vast array of industrialist operations. It is evident however according to studies and forecasts that the world supply of energy sources such as oil, coal and other fossil fuels are diminishing at an ever increasing level. As these energy sources diminish the price level for these sources of energy increase making it more expensive to sustain certain levels of industrialisation. Through the realisation of the above problem there is a constant search for alternative energy sources (Bill McKibben, 2012)…

    • 3493 Words
    • 14 Pages
    Best Essays
  • Better Essays

    Oil and gasoline prices follow a trend that sparks mixed reactions from different industry stakeholders in the America’s economy. The trends on oil and gasoline and their stability have immense impact on the performance of the economy based on their primary as energy. The government’s ability to ensure stability in price movement is seen as a key step towards fostering steady economic growth. A variety of factors are at play in the determination of these trends exhibited by the oil prices in America. Some of these factors are attributable to the market forces and understanding them would be instrumental in resolving economic problems resulting from the surging oil prices.…

    • 1694 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Oil prices have risen to an ultimate level; congress must look into the still tiny alternative energy market. In a minimum of fifty years fossil fuels, which include petroleum (oil), natural gas, and coal, will all run out. Alternative energy is a renewable and the most productive type of energy for the USA and the world (United States. Department of Energy). Every person on this planet is provided with a dirty and unforgiving energy source, fossil fuels. Fossil fuels destroy and tarnish the once beautiful world. Alternative energy could slowing bring back some of our prosperous health. The switch should be made; alternative energy is a productive source of energy in which its pros out weigh its cons.…

    • 1021 Words
    • 5 Pages
    Good Essays
  • Good Essays

    To Drill or Not to Drill

    • 614 Words
    • 3 Pages

    For years, the nations of the world have relied on some form of energy to sustain the populace and the industrial sectors of that nation. Fossil fuels (oil, coal, and natural gas) are the backbone of the United States’ energy consumption. Fossil fuels are not an infinite source but a finite source. Scientists do not know the exact process behind the creation of fossil fuels, except that the creation takes a very long time. Because fossil fuels are not unlimited and speculation has some fossil fuels disappearing by the end of the 21st century, many individuals believe that the United States needs to look at other resources to fuel the country (“Introduction to Renewable Energy: Opposing Viewpoints,” 2009).…

    • 614 Words
    • 3 Pages
    Good Essays