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End of Oil

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The Impacts of End of Oil on Society

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The Impacts of End of Oil on Society

Oil is a scarce natural resource with a high demand. Oil production is only in a few countries across the world. It is the most common form of energy used in societies. It accounts for 33 percent of worldwide energy usage. Oil is the preferable form of energy because it is readily refined and contains high-energy content. It is not easily substitutable with other forms of energy. Oil is not a renewable source of energy. Peak oil is approaching. The available oil will not be enough to meet the market demand. Constant oil supply is important to run most aspects of the society. The end of oil will have negative impacts on society.

Inflation is the greatest impact of peak oil in anticipation. Price levels will increase rapidly. The demand of oil will surpass the supply. This will trigger an increase in oil prices subject to the law of demand. Most aspects of humanity depend on oil. A reflection of the increasing effect will be notable in most of the commodities that require oil in the production process. Food prices will increase. This is because of an increase in transportation and production costs. This will have a negative impact on the standards of living across many societies. Commodities will be too expensive to purchase.

Peak oil will cause a reduction in economic activities across many societies. Effective running of most economic activities depends on oil. Inaccessibility of adequate oil supply will alter the process of carrying out economic activities. The world will experience an economic recession. This is because of the difference in demand and supply. Economic growth and development across the world will decrease rapidly. Nations will not be in a position to support citizens. An economic recession…...

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