Most world economies thrive off the sale and purchase of oil, but with recent climate change pacts and agreements. In their video, “What’s next for oil? | CNBC Explains,” CNBC International explains that the world may shift to relying on other sources of energy. Electricity is one of the popular alternatives to oil and as more electric cars get manufactured day by day, the future might just see everyone or the majority of people owning them instead of oil-dependent ones.
Renewable sources of energy are now being preferred over oil usage. The main reason for this is that renewable energy is clean and does not pollute the environment, a stark contrast to its competitor, oil, which causes a lot of environmental and climate hazards.
Despite its misgivings, oil is still a hot commodity and that is not about to change any time soon. Competition from other sources of energy still makes it have an edge over them and it is going to be difficult to change this, if at all. The only way oil can be trampled as a source of energy and its prices tamed is when the supply-demand for it balances in the world market is found. Until then, profitability from it will be challenged by oil companies and we will see periods of oversupply and depressive prices to accompany it as well.