Oil - Dead end

Advances in technology are beginning to offer a way for economies, especially those of the western world, to diversify their supplies of energy. The result? The grip of oil is loosened – and with it, that of the countries that produce it.

OPEC’s worst dreams will soon come to fruition, because global consumers of oil, are aware of the direction wind blows. Gas is one of the possible alternatives

The natural gas is one of the possible alternatives and the rise of solar power already is a huge success.

This energy revolution has rippled through the advanced economies. In a few years, even in countries with average sunlight, the cost of building a new solar power plant will be far lower than that of coal or natural gas. The price of solar power has fallen by $7 a watt in just two decades. In light of this, it was predicted that it would cost just 50 cents per watt by 2030 – this point has already been reached. By 2023, new wind power stations will cost less than natural gas. Tesla’s home battery, the ‘Powerwall’, could revolutionise the way homes and businesses are powered.

The Organisation of Petroleum Exporting Countries (OPEC) is centred mostly in the Middle East, with 66% of its reserves are situated here. OPEC’s total proven oil reserves stand at over one trillion barrels. As of 2013, the states with the highest oil reserves are Venezuela, Saudi Arabia, Canada, and Iran, with a joint 60% of the world’s oil reserves.

The Oil Age is slated to end by the year 2035, but the reserves will last another century. If the oil-exporting countries do not wish to see their economies utterly destroyed, they must diversify, invest in human capital, and make the private sector much more productive.