Rising Oil Prices’ Effect on Energy and Car Industries
The incentives for future oil exploration
As prices go up, life becomes very expensive, thus slowing down development. Being a natural resource, many countries will tend to explore this resource in their country.
The development of alternative energy sources
The rising oil price prompts governments across the world, from EU countries to the United States, to encourage the citizens to explore alternative sources of energy. Because of a continuous rise in the prices of petroleum products, the industries increase the prices of the products, and this leads to inflation. This also makes consumption come down, forcing companies to look for alternative sources of energy.
Manufacturers of motor vehicles plans for the future design of cars
Although the functionality of hybrid cars is still somewhat inferior to those based on petroleum, they are already in the functional state and that they are already capable of transporting people to their destinations. There might be little sacrifices on their speed and acceleration as well as maximum distance travel capacity, but hybrid vehicles are very much capable of taking over the basic function of petroleum-based vehicles, which is to transport.
There are also numerous advantages that are associated with the use of hybrid vehicles. The first and foremost is, of course, the cheaper cost of fuel since the hybrid vehicles can either use biofuels and electricity that had been generated by renewable sources as well as being environmentally friendly with their emission levels. Previously, the high price of hybrid vehicles is what made them unattractive to the market. That is why they were not preferred by regular consumers back then. The rise in fuel prices, however, is starting to make them look cheaper than the vehicles using traditional petroleum fuels.
Aside from the small difference between hybrid vehicles with their traditional counterparts, there are also infrastructure concerns with the kind of fuels that hybrid vehicles might use. If the hybrid vehicles are to use biofuels, then there is very little change in the refueling stations that are to be used for them. It is a different story, however, if they are to use hydrogen or electricity.
The important part of the current economic situation right now is that the expenses related to these additional infrastructures, as well as additional payments on the part of the consumer, are starting to approach the acceptable level when they are compared with the costs of the traditional fuels. As a result, the option of buying hybrid cars is more attractive than ever. The only problem that hybrid cars are facing would be the mass-production aspect of cutting-edge technology. All of the technological aspects of manufacturing it would mean a tremendous investment on the part of the existing car manufacturers since it would require the re-hauling of all of their known process of manufacturing the car as a finished product.