Economics and Earth (Part 2)

In my previous posting titled Economics and Earth, I mentioned on how today’s world economy depends heavily on earth resources to keep it growing. In this case, will the earth resources be everlasting to support our economy and our lives?

Arguably the most important resource that keeps our current economy moving is fossil fuel in the form of oil, gas, and coal. It is the fuel that powers almost all vehicles transporting people and world’s goods and services. It is the fuel that provides electricity to major factories producing all sorts of human necessities around the world. It is indeed the fuel that strongly affects our current economy. A hike in oil prices, for example, can easily shake stocks market worldwide and send prices of goods and services spiralling up.

But here is the grim fact:

 Based on BP Statistical Review, our current proved oil reserve stands at around 1.2 trillion barrels. Current world annual oil consumption is around 30 billion barrels. Assuming there is no major oil-well discovery and no change in world oil consumption pattern, earth will be out of oil in around 40 years time! Somethings catastrophic that could happen in our life time.

Gas and coal are used in a slower pace as compared to oil. With the same production and consumption pattern, both fossil fuel could still be around for approximately 65 and 300 years respectively.

But as the world tries to reduce dependency of oil and start to use more of gas and coal, their reserve will predictably going down faster. Hence, the prospect that earth may lose all its traditional energy source by end of this century looks even far more plausible then ever.

Fortunately, the world is becoming more and more aware of this threatening fact. Scientists and engineers have worked hand in hand to come out with alternatives renewable energy resources such as solar, wind, biofuel, etc.

Yet, will they become popular fast enough to catch  up with the deteriorating of fossil fuel reserve? These alternatives resources are still relatively new to public, expensive to deploy, and may not have the same dollar and cents economic value compared with current fossil fuel. The time is limited but the task ahead is huge. Only with global consent and cooperation, the world can sustain itself and everything living on top of it. But again, it is not as if the world have much choices to choose.

What’s in your mind?