Month: January 2020

What substitutes exist that would be able to replace Big Oil? Through its long, wealthy history, the Big Oil industry has dominated the energy sector; however, new methods are continuously being explored in hopes of eventually getting away from the old methods and into more eco-friendly options. As different methods of energy have been developed, many different avenues have been explored. National Geographic reported as early as 2004 that oil may soon decline. Although the Earth will not run out of coal in the near future, nor will the untapped deposits of oil shale and tar sand run out in the near future, it is becoming more and more apparent that the carbon dioxide that results from coal and fossil fuel usage has caused dramatic warming to the planet. So, what other options exist?

Nuclear power, solar power, and wind power are among the most widely used substitutes for oil energy. Although fossil fuel usage is still the primary source (by a great margin) of energy, these three methods in particular have been used more and more frequently in recent years.

So, just realistic are these different methods?

Nuclear power uses nuclear reactions to produce heat, which is then used to turn turbines and produce electricity. The fuel for nuclear power plants, uranium, contains the same amount of energy as a ton of coal in a single pellet, hardly larger than a pencil eraser. NASA is known to support nuclear power, believing that this method can produce the most energy while having the least destructive impact on the environment. Countries such as France have been very proactive with nuclear power, producing over 80% of its electricity through this method. However, other countries are beginning to follow in their footsteps. Nuclear power is seeing increasing usage in the world today and may become even more prevalent as time goes on.

Solar energy is able to take energy from the sun and convert it into thermal or electrical energy. It is the most abundant energy resource in the world, as an unbelievably large amount of energy strikes the Earth’s surface continuously (173,000 terawatts!). Solar energy is becoming increasingly popular as well, with the global solar market expanding nearly 30% between 2017 and 2018. While China remains the largest producer of solar energy in the world, other countries are beginning to catch up; the U.S. currently sits in second place. Last year, it was estimated that 70,000 solar panels will be installed each hour for the next five years, an astonishing estimation that proves just how popular solar power is becoming in the world today.

Wind power is a process that converts wind into mechanical power or electricity. Wind turbine use has increased over 25% per year during the last decade, but still provides a small portion of global renewable energy today. Wind power is cost effective, creates jobs, and is very sustainable; technically, it is a form of solar power, since winds are caused by the uneven heating of the Earth’s surface by the sun, as well as Earth’s rotation and irregularities on the surface. Due to these reasons and many more, wind energy is growing very rapidly, especially in the U.S.

In conclusion, many different energy sources exist that can replace oil and fossil fuels. These are a few of the many that are being employed in the world today in order to produce more sustainable, more eco-friendly energy. As climate change continues to become more prevalent, these methods will continue to grow. Maybe one day, they will become the sole sources of energy in the world; we will just have to wait and see.

As we examine today’s “Big Oil” and look to move into a future of sustainability and one where oil companies implicate more regulations in order to make the industry more eco-friendly, it is important to look at how the oil industry got to where it is today. By examining how we got to where we are, it will show further why oil companies are so reluctant to change their ways despite the mounting scientific evidence that calls for change.

John D. Rockefeller, widely considered to be the wealthiest man in American history and the world’s first billionaire, made his fortune by revolutionizing the oil industry. In 1870, Rockefeller formed the Standard Oil Company; his company quickly grew to a monstrous size, controlling over 90% of America’s refining capacity, pipelines, and gathering systems by the end of the decade. The company eventually grew until the U.S. Supreme Court declared it a monopoly in 1911, accusing Standard Oil of using aggressive prices to destroy competitors and threaten other businesses. With this declaration, Standard Oil was split into 34 different companies in hopes to reduce monopolization in the oil industry and promote more market competition.

Around the time Rockefeller completely revolutionized the oil industry, it quickly became one of the most profitable fields to get into. Although Standard Oil was dissolved, its successor companies continued to dominate the oil industry (and continue to do so today). Although the companies have morphed and changed over the years, some of the highest earning companies in the world are direct descendants of Standard Oil, including ExxonMobil, Amoco, and Chevron. While their competition allows the market to be much freer than it was a century ago, these companies still continue to amass massive profits. Long story short, the oil industry has a long, time-enduring history of earning large profits and rapidly expanding. The most recent United States oil refinery, built in 2018 and opened in 2019 in Channelview, Texas, shows that oil companies are still continuing along the path that they have traveled for so many years. Despite the emission of smog, air pollutants, and many nasty gases, oil refineries continue to be built. Although companies promote and advertise their advancements with different environmentally-friendly energy sources, their actions are still overshadowing their words. It is hard to pull away from such a profitable practice that has dominated the economy, as well as American politics, for so long. As some of the most powerful companies in the country and even on a global scale, they are afraid to give up what they do so well: oil refining. So, how far will oil companies go before they realize that they must change their practices? Or is it too late?

 

In recent years, as climate change has come to the forefront of politics both domestically and abroad, one group of companies have been blamed time and time again for their influence on the shifting environmental patterns: Big Oil. The umbrella term includes six (sometimes seven) of the world’s largest publicly traded oil and gas companies. These include BP, Chevron, Eni, Exxon Mobil, Shell, and Total, and sometimes ConocoPhillips. Not only do these companies dominate the multi-trillion dollar industry that is oil and gas drilling and refining, they also have a major political and economic influence, especially in the United States. Especially in today’s political atmosphere, Big Oil is often times seen in a dark light as detrimental to the environment and a big reason for climate change. So who really owns this group, and how does it affect the environment?

Although the Big Oil group is headlined by large companies, the truth is that many Americans actually “own” Big Oil. Millions and millions of American households invest in oil, natural gas, and energy stocks, therefore giving them a share in these companies and making middle class Americans truly the majority owners. These companies are not owned by a small group of wealthy individuals, but actually by the people, and this ownership can actually have a strong positive impact on Americans’ lives.

A 2015 Sonecon study found that the strong oil and gas industry provides funding for the retirement plan for millions of Americans across the country. Teachers, firefighters, and other retired public employees receive strong returns from state funded investments in said industries. Returns on oil and natural gas assets proved to be much higher, on average, than returns from other assets, a whopping $2.30 per dollar invested compared to $1.68 per dollar. During both strong and uncertain economic times, oil and natural gas investments performed much better than other assets, and thus serve as a strong investment opportunity for millions of Americans across the country. So is it possible that the economic benefits of Big Oil outweigh the economic risks and the large energy companies should continue to be in business?

This question has burned brighter and brighter in recent years, and has come to a head in American politics. While scientists have repeatedly stated that we will face serious environmental hardships very soon if we do not rapidly reduce our carbon emissions, oil and gas companies have turned to more environmentally conscious methods for producing energy – or have they? While companies like ExxonMobil and BP have launched initiatives to find ways to produce energy from algae and other natural resources, these same companies also put millions of dollars into elections in order to support candidates that they feel will be more lenient with environmental policy and regulation. Whatever their ideals, it is difficult to ignore the drawbacks of Big Oil, including the dangers of oil spills, the disruption of wildlife and landscapes, air pollution, and many other effects that are tied directly to the oil and gas industry. As supporters of both sides talk louder and louder, this issue of debate will continue to be on the hot seat for many years to come. Where we end up as far as governmental policy and public view may have drastic effects on the lives of each and every American across the country.