Between peak oil and overall dependence on foreign fossil fuels, energy resources are dwindling. It is not to say that there is no more oil left on the earth. Rather, what is left will be more expensive to extract and refine, largely eliminating the profit margins of the companies able to do so. There may very well be hundreds of years’ worth of usable oil under ground all over the world, but the fact remains: it is deeper and of lesser quality than what industrial economies are used to and may never be extracted. In light of this, in terms of the development of alternative energies, it may truly be a blessing in disguise.
Depleting Energy Resources Means More Expensive Energy
It is a basic tenet of economics that with scarcity comes higher prices. As fossil fuels deplete at an alarming rate, more nations are industrializing, putting even greater demand on the dwindling supplies. This pressure works to drive up the price of oil and other fossil fuels. Eventually, it could price them out of reach of average consumers who have grown accustomed to low fuel prices. It does not just affect gasoline prices for automobile use either. It will have a negative impact on home fuel, airline prices and anything that uses oil products as an input including food production and transport. The price of everything will go up according to the increased price of fuel.
Alternative Energy Development
Despite the fact that many forms of alternative energy have been around for decades, there has been no large scale political will to implement any of them. This is slowly changing, but the economy still runs off of fossil fuels. There is a tremendous investment that is required for the development of alternative energy. Until now, there has been little interest in doing this among politicians and corporate leaders. However, as the perfect storm of increased fossil fuel demand combined with dwindling fossil fuel resources speeds up, there might be a sudden surge of interest in looking at the alternatives.
A Blessing in Disguise
Even though the economies of the world may face energy shortages due to falling fossil fuel supplies creating a crisis of epic proportions, it may be a blessing in disguise. It may force individuals and governments alike to change their habits. Energy consumption must become the standard way of doing things. It does not mean that a new dark age will befall mankind. It means that clean energy alternatives will have to be implemented, and a dramatic shift away from fossil fuels will have to take place. The energy crisis will inspire innovation and experimentation with new ways to power modern industrial nations. More than that, it will create new demands in the economy by creating new industries. It may even shift economies back to a more local scale without sacrificing quality of life, where people and enterprise stay in touch with their immediate surroundings.
There are many dire predictions about the depletion of energy resources and what could happen as a result. On the positive side, it could truly transform the way people live their lives–in a good way. When energy is not wasted as a matter of practice, people and nations learn to live within their means. Depleting energy reserves may not just be a blessing in disguise in terms of the development of alternative energy, it may also have positive ethical and social effects.
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