- Introduction
For centuries humanity has tasked itself with familiar methods to generate power. Progress in technology brought about more expedient energy generating procedures over the years. However, the purpose of outsourcing competitive energy resources to investors has defeated the purpose of developing energy efficient for the benefit of humanity. When financial factors envelope the need for clean and safe energy sources, the question becomes if an alternative and renewable energy source really exists. Awareness to climate changes has prompted industries to refer to renewable energy sources to reduce carbon emissions. This awareness has drawn the attention of several countries planning to eventually integrate renewable energy practices to eliminate environmental hazards and promote cost-effective programs. Oil based economies have long been sought as the primary providers for a variety of industrial and domestic applications.
A detailed explanation in this report shall evaluate both sides of the argument as to whether oil shall be continued to be processed in spite of it being a non-renewable energy or finding sustainable measures to replace oil in the event another peak oil moment is anticipated (Kotab & Helsen, 2004). Many regard oil as an infinite source as it is being naturally created and produced constantly. But this is a fallacy as oil sources are only available finitely before the oil-making process can resume naturally once it is depleted. Oil then has to be sought in alternate locations where access can be extremely difficult and expensive, and may take years to even confirm if sufficient oil is present at locations in question (Moors, 2012). Additionally, oil processing has raised concerns in climatic changes due to withdrawing essential ingredients from the natural environment. Oil production not need be completely eliminated, but to avoid depletion and rising prices, lower carbon energy sources need to be researched and compared to the functionality of an oil-based economy.
2.0 Alternative Energy Sources
One impeding factor to be considered is the cost involved and the losses of economic growth by transitioning to alternative energy sources. Instead of relying on physical factors to resolve energy crises, methods to retain human dignity and interaction need to be encouraged. Raw oil products have proven to be independent of other products and sources, where alternative energy practices, if executed, would provide too much dependency for essential services (heat, electricity, power, etc.). Oil products at least not need to be utilized to operate all facilities providing self-sufficiency and subsistence to smaller communities. However the plan to integrate all power by only a few, if not only one, energy source can be a global risk. If an energy source facility were to malfunction, a global power blackout can unfavourably occur. Environmental engineers at Stanford University commissioning the Atmosphere and Energy Program have launched a plan to power the entire world’s energy by the year 2030. Billions of dollars have been estimated to fabricate such an advanced system, not including power generating costs or arranging cost per yield for designated areas to house these systems (Bradley, 1997). Simply launching a renewable source campaign cannot be implemented without any policy-based procedure as in the case of nuclear energy. As clean as it may be, dire consequences can arise when not properly handled. The disaster in Chernobyl in 1986 is a disastrous example that turning to clean energy sources from oil is not always the answer for reducing pollution and emissions. In fact, this disaster is an example of how turning to alternative sources can create more problems than solutions.
The following is a list of alternative energy sources to be considered to transition from oil processing. Both positive and negative points are addressed in comparison to oil as well as with one another in implementation. They can be classified as:
- Renewable Energy
- Non-Renewable Energy
- Energy Storage
These aforementioned energy sources are explained with various types of distinctiveness, including industrial and governmental initiatives, and how they implement transition strategies and targets. They may comparable to oil products in cost and cleanliness, but the advantages and disadvantages shall be discussed in comparison to oil and among each other. Each has their benefits or cutbacks on progress depending on how every characteristic is included for the feasibility of implementing each procedure.
A. Renewable Energy
Renewable energy sounds to be the most promising form of transition as far as environmental preservation is concerned. They are generally composed of hydroelectric, biomass, geothermal, wind and solar energy. Each procedure involves the use of raw materials to provide energy for several years and may resolve many climate concerns, although they currently only collectively provide between 0 to 14 percent of its share of world energy, but continue to grow. However due to forecast taxpayer subsidies may result in diminished returns for future subsidized investments. Reduction in operating costs such as electricity proposes a longer payout period. The issue is not electricity in itself produced from various sources because it is dependent on questionable sources. Water, solar and wind energy may contribute to electrical power, but the cost to transmit and reroute power always becomes a cost factor. Because these natural sources do not fluctuate or deplete like oil products and are mostly available, they do not require fuel and can generate electricity reliably.
B. Non-Renewable Energy
As opposed to renewable energy sources, non-renewable have the potential of being reliable sources, but are also finite sources. In fact, they can be almost as finite as oil. Most of these sources are natural gas, coal, shale oil, tar sands, extra-heavy oil, and nuclear energy. Currently they are available and cost-effective. Manufacturers and suppliers benefit from non-renewable sources and can afford providing their employees fare wages where they can retain market value (Jacobson, 2005). These resources are favoured and disfavoured by environmentalists because, although they can be used as bargaining tools to help economies stay afloat, they still come from sources of our planet. Some sources may be helpful for industrial uses, but are essential for the ecosystem. Once they are depleted, they cannot be replaced. As with any proposed source of electricity, the problem continues with the connection to existing power grids. When cost is a factor between constructing a new power grid or reconfiguring an existing one, cost is becomes the deciding factor either way.
C. Energy Storage
Energy storage becomes affordable when production grows and the price of new technology decreases. Normally government tax credits and subsidies selected wind and solar energy when their production increased (Gordon & Falcone, 1995). Nowadays, instead of government implementation, these sources have been developed through the marketplace. Simultaneously, as the importance of renewable energy sources increase, the need for new storage methods are also required to store energy from renewable sources (Connolly, 2010). Energy storage becomes the largest barrier in energy production, but allows users to consume them for power in any season. Yet, the methods selected are based on cost and limitations for each storage application. The most common and basic storage methods are electrochemical, mechanical, compressed air, and pumped storage. Over time storage of these material also have their limits and need to be evaluated.
3.0 New Source Energy Transmission
An energy conference of independent systems operators (ISOs) surmised that many regions need assistance to harness a mix of fuels to generate power for their respective regions. The constant issue with transmissions is too many regions seeking to alter there energy consumption resources do not have the capacity to transfer sufficient energy to their own regions. Therefore they must either continue to deplete their territory of natural resources or depend of other regions or even across borders to other countries to harness power.
3.1 Regional Power Designation
What shall a region or country do if they do not have their own indigenous resources? Problems arise when the hosting resource area must yield enough energy to another. When extracting power from a non-native source, investors feel this is too great a risk, and if they must invest in other sources, they may end up investing against competitive sources. The other risk factor is investors fear the sources in question may no longer ne need if another alternative is replacing oil. Some investment returns only peak during given seasonal periods. The electricity market offered power generators exchanged between the Province of Quebec and New England to maintain fuel supplies instead of a purchasing transaction. Since in winter where high demands are faced, power generators only access limited supplies on the spot market resulting in price hikes and the customers become the targets.
Besides the costs of power transmission over great distances, economists of the International Energy Agency (IEA) suggested not to rapidly expand renewable energy power, as technology is often complicated and expensive. Initially these alternatives consume large amounts of energy to operate efficiently but at the cost of installing national power grids. The usage of fossil fuel and natural gas would still be in abundance and cheaper to generate the required electricity. Wind and solar energy do indicate the promise of cleaner environments, but the electricity required to operate them would be extremely high among industries and consumers. This could be advantageous to other countries who already face higher electricity costs equivocating the costs of renewables. The argument regarding costs spurred environmental support and movements to tolerate high costs, but the only option to reduce toxic emissions in the long-term. As for costs of competing renewable energy sources, the usage of wind would reduce its costs whereas the costs of natural gas would rise. However, in approximately another decade, their prices would equalize and the power grid does not need to be modified because not too much power is drawn from renewable sources.
3.2 Grid Sharing and Design
In order to prevent the alterations of power rerouting which are also costly, civil and environmental engineers are noting that using empty space in yielded territory for renewable power plants greatly reduces power losses. Most environmentalists prefer wind turbines dotting the spacious landscape as they appear to be an aesthetic addition to the landscape. So far establishing wind and solar facilities renders better power source coordination. It has been reported that thousands of jobs would be created in the north eastern states, especially New York State, with the plan of wind and solar facilities, since NYS imports much of its power (Rosenthal, 2013). Additionally many states have open areas currently without any future plans for utilization, and evidently establishing wind and solar power grids would be ideal for coordinate power. The costs of design and power distribution would be higher, but would be recovered in under 20 years along with the recovered pollution and carbon emission costs, and the renewable sources would add to a cleaner environment.
Countries around the world particularly in Europe and South Africa are dedicating their efforts to reduce fossil fuel that have been used for several decades. Many European industrial cities have suffered heavy pollution contamination and are facing hardships because of the customary use of fossil fuels over the years. But the use of wind turbines is becoming the more popular visual aspect added to the landscape as aforementioned. Except only a few European countries are increasingly utilizing wind energy while a few others are using land wastes from rural areas to supply most of their heat. But the notion of using land waste in the western world has not been researched enough to attempt. Surely the main concern for European countries to raise their power sharing is the driving costs of renewable power usage. The reason is the difficulty of designing a power grid to transmit between distant regions of varying types of communities and commodities they specialize in. Southern Europe is much more industrial than the north where it is more windy, and the capacity of transmission between the two regions would initially bring inaccuracy to calculated costs of operations and usage.
4.0 Energy Politics and Technology Advances
Historically since the 1980’s, oil continued to peak as the main fuel source and is projected to peak unless renewable energy sources are funded and researched. By maintaining oil sources the energy crisis would not be resolved, at least not without government support. Too many rising energy costs are forcing environmentalists backed by government subsidies to find alternatives (Danko, 2013). General Electric, one of the main power suppliers, are pushing further among US states for wind energy technology with the resident states given the option to choose cleaner energy sources along with public support. Because governments initially supported the process of gas and oil, they realize nowadays how weighing the costs over a long-term recovery to promote a cleaner environment would serve better than profiting from gas and oil.
However, the argument between the support and refute between oil and renewable sources continues as long as energy is assigned to long distances with percentage of losses. Even a slight increment of energy loss targets consumers with higher costs, especially if the transmission is relayed between the source and the recipient. Then a proposal of each building housing separate units is considered but bot help with cost reduction very much compared to oil prices. Whenever oil prices hike in Europe or North America, the notion of renewable sources attracts the attention of parties on all sides of the equation including investors, government and environmentalists. As aforementioned, alternative sources are still more costly than oil in spite of these sources being environmentally friendly (Ailworth, 2013). But economists understand there are trade-offs for the costs of researching cleaner energy and evidently a reduction of harmful emissions.
On the other hand, the view of alternative technology has changed because of the long-term costs that may add to a lengthy financial recovery. Except the fall of the economy has swung the attention back to oil products because that is what industrialists and environmentalists are accustomed to. Instead of funding lengthy and tedious research, they may instead encourage investors to consider new and improved technology for oil processing, even if oil products are finite. But on the other side of the equation, investors do not feel comfortable investing in technology that can forecast positive results for the short-term, as the oil industry is a multi-billion dollar investment. Investing in technology to forecast promise in alternative energy, however, may only prove affirmative if tried and tested, and government involvement may only take place then if this said technology is reliable.
5.0 Conclusion
Alternative solutions to oil-based economies are worth seeking, but shall not be regarded as absolute. Every solution arrives with a price and all angles and possibilities need to be viewed. Therefore, they shall be researched before oil indefinitely peaks and other oil sources may be almost impossible to access. An oil-based economy shall not be abandoned or replaced, but reserved to prevent the peak oil moment and refer to alternative clean and renewable energy sources (Lynch, 2010). So far, many energy sources have been tapped with an imbalance of all sorts of parameters when discovered in a given territory, environmental concerns arise because of potential disturbances that may occur to the natural environment even with the best intentions and if resources can provide cleaner and renewable procedures.
Arguments have also concluded that many renewable sources can be domestically produced, but the methods to reach those goals would be tedious and extraneous. When alternative sources are sought and procedures to harness energy become another question of costs and lengthy research, most key players including governments and investors would rather turn to oil and gas once again. If accessible oil reserves are still present, key players and stakeholders still prefer existing oil reserves. Does this mean that renewable sources are not quite ready to replace oil and gas technology? Certainly the risk of oil indefinitely peaking would result in a global crisis and all stakeholders would have no choice but to turn to alternative sources, but shall not wait until the peak oil dilemma strikes.
Work Cited
Kotabe, M. & Helsen, K. “Global Marketing Management”. 3rd edition, John Wiley & Sons, 2004.
Ailworth, E. “Changes Urged for Fuelling Power Grid”. The Boston Globe, 11 May 2013.
Moors, K. “U.S. Oil and Gas Put Squeeze on Alternative Energy”. Seeking Alpha, 19 August 2012.
Lynch, M.C. “When Peak Oil Advocates Disappeared”. U.S. News On Energy, 08 April 2013.
Jacobson, M. Z. “Fundamentals of Atmospheric Modeling”. 2nd Edition, Cambridge University Press, New York, 2005.
Bradley, R.L. “Renewable Energy: Not Cheap, Not “Green””. Policy Analysis, 27 August 1997.
Connolly, D. “A Review of Energy Storage Technologies”. Version 4. University of Limerick, 11 October 2010.
Gordon, S. & Falcone, P. “The Emerging Roles of Energy Storage in a Competitive Power Market: Summary of a DEO Workshop”. Sandia National Laboratories Report. 1995.
Danko, P. “Nevada Geothermal Energy Will Help Power Los Angeles”. Green Tech Media, 03 May 2013.
Rosenthal, E. “Life After Oil and Gas”. The New York Times, 23 March 2013.
