Higher Crude Prices is a Gain for the Environment

Tobacco industry was one of the industries which decided fate of several governments around the world till the late 1980’s; serious awareness campaigns conducted by several heath care organizations across the world ensured a decline in demand for tobacco related products. To avoid a confrontation with the consumers in health front, the cigarette companies themselves conceded to the truth and got diversified to various sectors. Today we have a similar scenario where instead of Tobacco it is the Oil Lobby which controls governments around the world.

Any country’s economic policy is dependent on the profit it generates and profit completely relies on price of oil. Price of crude oil was initially worked out on the basis of the rule of economics, demand and supply, then a new factor emerged political developments around world and the latest entrant in this front is new inventions in renewable energy sources. Lately we are seeing every country accentuating and encouraging new inventions in renewable energy. This is due to the fact that political instability or war immediately reflects on the price of crude oil and the domino effect is sensed by all nations, especially the non producing ones.

The crude oil price for a barrel from 1986 to 2000 was in the realm of 10 USD and it has risen to 20 USD in the following years. From 2003 onwards we started witnessing a new acceleration. This is mainly due to the panic created among the oil producing nations in the Middle East whom chiefly depend on oil and gas, by the inventions made by most of the developing nations in the area of renewable energy. This is considered has one of the major concerns of oil rich nations to bring down the production and creating an artificial demand, even though it is not much pronounced. World is witnessing all-round progress in all sectors therefore naturally energy needs also increase and it is imaginable the impact could make on the world economy due to artificial pricing.

As a matter of fact, we have to see it as a good omen for those who are striving for eco-friendly fuels because they will expedite all the projects to extract a desired result to this end quickly. If the price spiral of crude oil is seen as forerunner to environmentally favorable energy source it will be most welcome by one and all. The day is not very far away for, what the Tobacco industry encountered in 90’s to happen to that of Oil industry.

Toboc Trade News