The Oil Supply Dependence Of The Automobile Industry Research Paper

The Oil Supply Dependence Of The Automobile Industry - enquiry Paper ExampleThe paper tells that considering the rising vegetable oil prices worldwide, there were recent attempts to pave the way to alternative sources of vigour so as to gradually wither the demand for oil. In 2010, Li, Xiaogu, Clark, Christopher, et. al. conducted a survey of the battalions likelihood that they forget prefer flexible-fuel or hybrid automobile given the choice when they purchase one. The result showed irrefutable response to less dependence on oil for automobiles. Statistics show a declining dependence on foreign petroleum since 2005, according to the U.S. Energy Information judgeship in mid-2011. Nonetheless, what has been the actual situation pertaining to a dependence on automotive oil? There was an increase in the use of domestically produced biodiesel, ethanol, and natural gas. However, by the mere fact that crude oil from domestic mathematical product realized increase in demand, depende nce on oil as source of energy remains high. Imported oil declined. As can be seen from Figure A, consumption of oil also declined in 2010. But there will be a growing demand for liquid fuels including oil in the coming years as shown in Figure B. For automobiles, the trend in demand for force Gasoline also shows a projected increase in demand. See Figure C. Even as the production volume of crude oil will be increased in the USA, the prices of oil will also increase in the coming years. This can be clearly seen in Figure D. Apparently, the people are feeling the financial impact of the seemingly endless price increases of oil in the world market as well as in the local market. There is a domino effect on even the prices of basic goods whenever oil price increases are announced. Oil price increases eventually jack up up the prices of goods and services since sources of energy like gasoline, motor oil, and liquefied petroleum gas are part of the cost of production and operating expe nses like transfer or travelling expenses. It reduces the value of family income because each dollar will have a lower value in the sense that the same amount of currency can only buy less and less as the prices of oil increase to push up the prices of prime commodities. Thus, people have been adjusting to these trends by conclusion ways and means to reduce dependence on oil. Many have resorted to alternative energy sources. 2. Analysis of the Problem The world has limited supply of oil while there has been increasing demand for oil. Tverberg, Gail E. wrote that oil supply of our world had stopped increasing since 2005 (Abstract). As a matter of fact, his report mentioned (3) We show in this section that world oil supply constriction started slightly 2004 based on price trends, and that restriction affected primarily OECD countries. It will take about 20 years to mitigate the decline in oil supply by producing alternative sources and by replacing vehicles capable of utilizing al ternative sources (4). It was estimated that wind and solar energy sources can only contribute an insignificant capacity for the production of energy compared to the total energy supplied by oil-based power generators. Growth of emerging economies (1) surely led to an oil shortage given such a fact about no more rise in the production of oil supply. To endorse this phenomenon as of a very recent date, January 3, 2012, Brad Plumer of the Washington Post reported the prediction of Goldman Sachs Investment Bank pertaining to oil production in the world, which says that demand will hit the production capacity of oil by the year 2013. China and India have reached 2.5 billion population. Their demand for oil in align to achieve economic growth was reported to be rising as a result of these two countries fast developments. In contrast, oil supply production