Oil ETFs: Supply of Oil Can’t Keep Up With Demand

Source: http://www.etftrends.com/2009/11/oil-etfs-supply-oil-cant-keep-up-with-demand.html

Summary

The global desire for oil is immeasurable while the supply of oil is lacking. With the overwhelming demand of oil, it is estimated that global oil demand will probably exceed supply in 2010. Approximately oil demand will rise by 1.3 million barrels per day (bpd) where in 2010 to 85.9million bpd. On the other hand, supply from outside the Organization of Petroleum Exporting Countries (OPEC) and production of natural gas liquids may only grow 800,000 bpd. If OPEC sustains its present proportion, there is a chance that crude oil will drop by 150 million barrels in 2010. Oil demand is expected to be highest from countries outside of OPEC, like China with its vast demand.

Connection

One of the most gas consuming machine are cars. Even with the technology advancements in electric powered automotives, the final decision is base on an individual’s taste and preferences whether or not to purchase vehicles which are electrical powered. Although the price of electric powered automobiles are expensive, and the cost to recharge the car would be similar to the price of a fill up at the gas station, with the average household income, the real question is will families be about to afford these vehicles. Using electrical powered cars as an excellent substitute instead of gasoline powered cars. This will help stabilize the supply and demand for oil because lesser people will have to purchase gasoline to power their cars. With the ever growing demand for oil, it is important we find alternate routes to power our utilities.

Reflection

We have to take into consideration that in the next few years there may be a possibility of oil being a scarce resource. Even now the price of oil has risen tremendously in the past few months. In my own experience, I think twice before driving somewhere and instead taking public transit. Although electric powered cars are similar to gasoline powered cars in many ways, where the main difference is one is powered by electricity and one is by gasoline, I believe the reduction of gasoline powered cars and the addition of electrical powered cars will be a brilliant way to help reduce the overwhelming demand of oil throughout the world. It is hard to believe that approximately the demand for oil rises 1.3million bpd and that number will just keep increasing regardless of the price of oil. In my opinion, I think it is reasonable that developing countries receive the privilege of being first in the distribution of oil. However, only in an ideal world would sympathy come before greed.

Water Scarcity

Source:
http://epaper.timesofindia.com/Repository/ml.asp?Ref=RVRNLzIwMDkvMDUvMjYjQXIwMTIwMA==&Mode=HTML&Locale=english-skin-custom

Summary:
Numerous problems occur in many European countries due to the scarcity of water. Agriculture becomes a big difficulty because of the limited supply of water which results in droughts. This leads on in a chain of additional problems such as famine and poverty. Furthermore, it is hard for the government to keep stability when the promise of basic requirements of life cannot even be guaranteed. Although tens or even hundreds of billion dollars are invested in helping these struggling countries, it is still extremely difficult to improve and reform these countries in critical water scarcity. Specific countries that have a rapidly increase rate in population will suffer greatly due to inadequate distribution. What is believed to be the solution for water scarcity is that all scientific, political and business leaders of these societies which share the similar problem work together and create new ideas in which they can overcome water scarcity.

Connection:
Water is an essential natural resource that humans depend on for survival. It is important that societies that face problems due to shortage of water, receive help from those which are more urbanized. In some countries the scarcity of water leads to an endless train of other problems. Without water, crops cannot be grown, farmers cannot earn a living, and famine and poverty will be the result. In addition, survival will be an issue where people will start drinking contaminated water which could lead to fatal diseases.

Reflection:
The thought of not being able to utilize fresh water is mind throbbing. Living in a country like Canada with such privileges, majority of the people forget how grateful it is to turn on the tap and fresh water would be pouring down. It is important that we feel empathetic to those societies that deal with water shortages and realize how vital it is that we do not overlook the value in water. In a sense, in the future, it is possible for water to become a powerful resource where its value would be worth more than diamonds. Ultimately water scarcity will become a universal problem and in order to keep this from occurring, it is crucial that actions are taken ahead of time before this crisis.

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