Following the demise of the coal industry, it looks as though the oil industry may be headed in the same direction. Within the past five years, dozens of coal companies have filed for bankruptcy, including the Western world’s largest coal company, Peabody Energy, located in Arizona. The reason for this as they are simply no longer able to compete with the likes of other more efficient energy resources.
While we are moving into a more green economy on a global scale, coal and oil industries are struggling to survive. With everyone beginning to realize the massive savings that can be seen by switching to renewable energy sources, what incentives are there to keep using gas and oil? Denmark and Norway are two countries that have already proposed to introduce a ban on the sale of gas powered vehicles. While other countries have not taken quote such a strong stance, they are all following in a similar direction. China’s target is to have 5 million electric cars on the road by 2020 while India is looking to increase their stock of electric vehicles by another 5 to 7 million. Even Saudi Arabia, one of the leading oil producers in the world are preparing for an oil-free economy as they continue to sell off large amounts of oil at ridiculously low prices.
Other significant factors that prove the oil industry is declining fast is the amount of debt the oil companies have accumulated in comparison to the amount of profit they have made and Chevron, Shell and Exxon have all had their credit ratings downgraded this year by Standard and Poor. It’s no real surprise that oil sales are on the decline as more efficient sources of energy are discovered. If the oil industry is to turn it around, they would need to adapt a way to diversify into renewables within the next decade, or it may just be the end of the line for it.
Related Links;
– The Future of Oil Is Here—and It Doesn’t Look Pretty – The Nation
– The Future of Big Oil? At Shell, It’s Not Oil – Bloomberg
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