Oil prices could be about to drop significantly once again after the International Energy Agency’s latest Oil Market report found that global supply and demand problems have continued. The report contradicts previous expectations, which anticipated a steady rise of oil prices. The findings add more credence to the idea that a different paradigm for energy will be required to ensure long-term prosperity in the economic system.
The potential for lower fuel costs is hardly going to concern the average citizen, nor will they feel much sympathy for the oil extraction companies for whom low prices represent a problem for supply and demand.
However, oil price volatility remains a signifiant issue for the global economy as a whole system. Energy supply and prices influence a huge percentage of the activity within individual economies. While there are undoubtedly winners in an economy where oil prices are low, it is more often the case that the benefits do not offset the wider effects of a slowing economy.
A failure for exporters, most notably Saudi Arabia and Russia, to reach an agreement on supply is offered as the reason for the current imbalance, which is predicted to continue throughout at least the first half of 2017.
Responses from the point of view of the current paradigm argue a re-balancing of the market is needed. However, even setting aside current issues, there’s reason to believe that price uncertainties will continue taking into account environmental issues and the fact that fossil fuel stocks are ultimately finite.
An energy system with greater diversity, more distribution and ultimately powered by renewables offers a genuine, more resilient alternative to the current system with a longer-term and more balanced view of prosperity. For more on the potential of that vision, have a look at Circulate’s recent coverage of some of the latest innovations.
The renewable energy transition – Insight from Germany’s Energiewende
Google, Ikea, HP and other prove powering businesses with renewables is possible
Solar-powered plan crosses the Atlantic
Does renewable energy need subsidies?
World’s largest concentrated solar power plant opened in Morocco
Largest floating solar farm to be built in Japan
The post Oil price uncertainty remains, time for an energy re-think? appeared first on Circulate.
Source: Circulate News RSS