Oil — or the black gold as it is described— is a commodity that ignited and created wars over the past century. As oil prices escalated in the early seventies beside the fact that oil has negative impacts on the environment, most of the world collaborated seeking to find other replacements for oil. It is 2018 now and whether oil’s era is over or not is still the question. A significant number of experts believes that oil still has the upper hand over all of the other sources of energy, while others argue that complete reliance on other sources especially renewable ones will be the near future’s reality. The possibility that oil will still dominate the world for more decades must be reinforced with evidence for investors to take their …show more content…
Oil’s high reliability and availability seems to be one main reason that encourages investors to invest in oil with absolute relief. As it is axiomatic, the abundance of any source no matter what it is used for gives it the upper hand over the other sources, and this is applied for the energy sector. The feature of oil’s abundance is really what have been creating a world that is run and ruled by the black gold (Segal, 2017). This shows that oil is still found almost everywhere and in every country, which facilitate the road toward taking its advantage and assure that it will remain for a long period. Furthermore, while the extraction of the oil was a little complicated in earlier times, this is over now as the technology plays its crucial role every single day inventing more advanced ways for oil’s extraction, thus, more availability with less effort. The independence of climatic weather displays the incomparable reliability of oil (“Advantages of fossil fuels,” 2017). This means that unlike other sources of energy like renewables, oil is not affected by the sun’s shine or the wind intense. For example, it is almost impossible to supply the north pole with electricity via the solar energy, …show more content…
So, it is obvious that oil with its surpassing availability and reliability has no close competitors. Oil’s efficiency compared to its cost is most likely considered to be another main reason that could convince investors to invest in oil. What this means is that even when oil’s prices go up, it still worth it and the world’s demand will keep rising or sustain its level at least due to oil’s high efficiency. The efficiency is related to the high energy density that oil possess. Less amount of oil is able to supply power greater than huge equipments of solar or wind energies (Pyke, 2017), This indicates that oil is cost-effective unlike renewables which require much more effort to provide efficiency like the oil produce. For example, a gallon of oil would be enough to charge a smartphone for 20 years, while if solar energy is used, and due to its low energy density, the smartphone needs to be recharged every single day. Figure 1. Price VS Time for Crude Oil (Stockcharts.com, 2018) As can be seen in Figure 1, even though oil is having tough stages every once in a while, it seems that oil prices are performing great and recovering well in the stock market after the sharp