Effect of supply and demand and gas in our lifetime Essay

Oil has been an integral socio-economic vehicle which within the corporate scene remains a highly competitive socio-economic driver. Due to vast uses and demand, oil has become controversial and elastic in socio-politics. Here we see it causing socio constraints in oil producing countries and collapsing political institutions. Socially oil has a significant contribution in our general lifestyle. It has a comparative role within the context of mobility and industrial function where it is used in factories as well as in institutions which use combustive machinery. It is a determinant of economic prowess of a country. It plays a major role in research and advancement of power generation and use of bio fuels to ease environmental pollution. Gas is valuable in our lives based on the fact that it eases the burden of power use in cooking and within many socio institutions especially within our families. Gas also has been highly competitive and still remains so with many countries seeking to sustain demand. Recently European countries grappled with Russian company Gazprom over supply of gas when the company threatened to cut supplies. This paper reflects on the major effects of oil and gas on our lives in various aspects of socio-economics and its profundity. This profundity establishes the oil and gas use and contribution to socio-economics and politics. This analytical review covers environmental, political and research contributions, so as to keep sustenance of the same at per with developments in the technological trends within our lives which drain energy resources and adversely effect socio-economic stability. Contribution to socio economics Economic growth is dependent on energy resources. Energy supply within the development perspectives of a nation deplete economic recession and create more apertures for industrial progression in the nation. The distribution of resources within this economic perspective contributes to social –economic growth due to the dissemination of the resources made and gained from the industrial progression. Socio-economic progress is what supports the constituents of the society, namely the family. Most families own vehicles, machinery and combustive equipment that require oil to run them. They own various oil consuming devices like generators which they use to get power and run their daily activities. This perspective of integrating resources based on oil based contribution and importance is indicative of the pivotal role oil plays in the economic progression of a nation and a community. On the negative aspect, oil has very diverse negative effects on social economic gains and has led to the disintegration of economic stability within the units of the society. Increase in oil prices leads to stifling of social economics due to constrained spending so as to meet the higher cost of fuel. This constraint forces individuals to over spend and increased prices of goods and services. The effect spreads within the society to the most unfortunate and stirs unrest due to the high prices. On the same aspect oil has been a very competitive socially owned natural resources which in as many countries has caused political divisions and social disintegration. Communities in developing nations have been embroiled in long civil wars like in Nigeria. Nations with superior industrial needs have sought after taking advantage of lesser nations to establish forced oil drilling concessions so as to have a monopoly in the production of oil and directly befit their economic needs while hurting that of the producing country. The performance of the portfolio might be measured by the effects of changes in energy costs and availability of energy on the economy. Another portfolio measure might be the effects of the mix of energy sources on the diversity and vulnerability of the supply. Generating Electric Power in the Pacific Northwest: Implications of Alternative Technologies Christopher G. Pernin, Mark A. Bernstein, Andrea Mejia, Howard Shih, Fred Rueter, Wilbur Steger 2002. p 15 Effect on Resources Drilling oil has led to dilapidation of natural resources like forested land, marine resources and agricultural land. The effect on these natural resources is basically destruction of their existence so as to create sufficient exploration and drilling acreage. To excavate gas or oil, exploration and seismic survey has to be conducted on very significant area of acreage which completely reduces this area to a wasteful land for many years. The long term effect is that, the existing resources and land itself becomes wasted and polluted due to activities involved to get the gas or oil out. However there are positive attributes that come along with oil and gas production. There creation of jobs on these areas benefits local and professionals who have relevant experience and knowledge on the activities related to drilling and producing oil and gas. Creation of infrastructure and connection to electricity grids become the positive effects on the resources which can be utilized within the region the drilling or production is on going. The resources, like agricultural activities directly benefit from these changes and developments. Existing coffee factories get a boost to revert from using diesel engines to electricity. Communities are connected to the electric grid and can access electricity. Industries come up and processing of natural resources become easier. Proved reserves are both drilled and un-drilled. The proved drilled reserves, in any pool, include oil estimated to be recoverable by the production systems now in operation, whether with or without fluid injection, and from the area actually drilled up on the spacing pattern in effect in that pool. The proved un-drilled reserves, in any pool, include reserves under un-drilled spacing units which are so close, and so related, to the drilled units that there is every reasonable probability that they will produce when drilled. Bruce C.  Netschert The Future Supply of Oil and Gas: A Study of the Availability of Crude Oil, Natural Gas, and Natural Gas Liquids in the United States in the Period through 1975: 1958. p 7 Development of alternative fuels Oil and gas have led to positive research on energy needs globally. Companies and researchers have been seeking best solutions to the waning supplies and deposits of gas and oil to curb the eminent collapse of the supply and demand. Discovery of coal mines, use of electric car and trains development of alternative oil are diverse developments all based on the oil and gas supply and demand agenda. According to arguments based on the global perspective on demand and supply of gas and oil, it is questionable and much worrisome ‘Are resources likely to be available during the next fifty years in the quantities necessary to satisfy projected demands without substantial increases in prices? If not, what price in- creases are likely to be necessary to close the gap between supply and demand, and what are the effects of those increases likely to be? Ronald G. Ridker & William D. Watson: To Choose a Future: Resource and Environmental Consequences of Alternative Growth Paths. 980. p 96. Negative effects of the demand and supply is mainly seen within the oil curtails and supply context. International oil curtails have a stranglehold on the oil and gas prices and the effect of alternative oils becomes less dynamic and progressive stifling efforts to stipulate best policies to use to achieve the required progress in alternatives is slow. Implementation of development of alternative oils and energy resources has been ongoing. Creation of biodegradable oils has resolved much of the fears that demand would become elastic. Environmental effects Global warming and environmental degradation consequences on the flora are as a result of a lot of oil and gas exploration activities. Secondly the use of oil and gas in industries and within the concepts of combustion has led to degradation of the environmental. Industrial effluent related to oil has destroyed the flora while gaseous emission like carbon emissions from vehicles and industrial machinery has destroyed the ozone layer resulting to global warming. There are literally no positive implications on the environment by oil and gas. However on the profound aspect of research advancing of technology to improve on the air and to maintain a level of complacency within the ozone layer has led to discovery and global use of green houses and introduction of policies which reflect on addressing how to stop global warming. Governmental and geo-political effects A lot of the current crisis within the global fronts is based on escalation of demand of oil and gas by major world like the United States. The demand for energy, especially based on oil supplies has become un-foreseeable, as such the need to have vast reserves of oil within proximity as insulation to the critical point of demand and elasticity of demand is important. Non-Marxist social science, needless to say, had to contend with the reality, where incidents of collective violence were taking place all around. Facing this contradiction between their theory and reality, a compromise was reached by which it was hypothesized that anti-systemic conflict was only a temporary situation. This situation, they argued, would be symptomatic of the Third World nations going through a structural change. Structural change caused by the introduction of â€Å"economic development† and a new production relationship calls for the end to the traditional social and economic relationship. Dipak K. Gupta: The Economics of Political Violence: The Effect of Political Instability on Economic Growth. 1990 p 31 The issue here is that political prowess has influenced a lot of political inclinations in various nations within the world. On the same context, government policies to curb oil prices and to have reserves for future use have become null and wavering. The community within these jurisdictions suffer fluctuating oil prices and there is no consistency in the pricing hence the problem of constantly adjusting to the new prices due to lack of legislation. Political problems have emanated from this point with extremist policies on invasion of natural resources and barrel prices becoming tools of stifling economic progress in the communities.