Cheap oil prices may bludgeon the blossoming alternative energy market
Much to everyone’s surprise (and probable happiness), oil prices have dropped an unprecedented level, descending into the lowest prices that car owners have seen in years. While this might seem great for your wallet, it’s not so great in the grand scheme of alternative energy and the all-too-quickly-approaching future energy needs for a growing world.
It’s simple. Cheaper oil gives the consumer the power and peace of mind to drive more and worry less, to upgrade more and downsize less. It gives governments a chance to turn their nebulous heads away from the problems of energy and climate change. It also distracts from the pressing demand for investments in alternative fuel and energy from businesses and governments alike because falling oil prices can simultaneously lower gas prices. Unlike oil which is primarily used in transport, natural gas is used to generate electricity and directly competes with “green” energy sources like wind and solar on the market.
With the summit on climate change in Paris poised to commence at the end of 2015, cheap oil may give way to more weak compromises and less action towards divesting from fossil fuels, particularly from countries with oil-based economies. But as with most things, there is of course uncertainty in the matter, and predicting exactly how the market will react to lower oil prices is a job left to a supercomputer. No one knows how long it will be until oil prices begin to ascend once again, but we do know, that they will.
What are your thoughts on low oil prices?
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