Oil vs. the Future
Oil has been an essential element in the global markets, production, industrialization and overall consumption; but with trends towards a green future, will changes towards sustainability affect the oil industry in upcoming years? Continue reading to discover more.
Crude oil, also known as petroleum is known to be one of the most sought after and valuable commodities in the world at various points in time. With hundreds of thousands of oil reserves globally, the multi-billion dollar oil industry supports production and general transportation like planes, buses and cars for many years.
Transcending to the future, an increasing number of countries are pivoting towards sustainable energy and production. Whether from solar, water, or wind, renewable energy is certainly in the talks for many governments to enact regulations and changes.
With these two sources of energy colliding in our present day, controversial talks have begun as to if oil will be such a need in the future. For instance, if governments continue to propose progressive change towards a green future, many corporations and businesses will shift to producing goods with renewable energy and creating consumer products around sustainable energy. A perfect example is Tesla and their electric cars becoming increasingly more popular in the US and around the world. Following in their footsteps is GM, where they are trying for an electric car line in 2021. In parallel with this, oil has had a challenging time due to the unexpected pandemic that halted the majority of transportation, which is fueled by petroleum and powerhouse organizations like OPEC.
It is important to note that although there will always be changes and new technology being introduced in the markets, this flowing commodity is currently an essential part of the global economy and there are still milestones to completely shift toward a more sustainable and permanent energy source. This is mainly due to the lack of ability to harness sustainable energy in bulk. Although it is possible, currently it is rather scarce to find mass batteries able to hold such vast capacity.
The real question is will sustainability be the future? In turn, the battle of oil versus the future is certainly on-going and there is no real way to know when an asset will be obsolete. Whether you are investing in this flowing commodity, or new and trending corporations providing sustainable energy, as investors it is important to evaluate the market not only in the future, but mostly in the present and the world’s needs now.
Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing investing advice or a recommendation, or an offer of or solicitation for any transactions in financial instruments or a guarantee or a prediction of future performance. Past performance is not a guarantee of or prediction of future performance.