Internal and external Environments for the oil and gas management Essay

Internal and external Environments for the oil and gas management - Essay Example The theory of peak oil is largely based on Hubbert’s work. He foresaw peak oil production in 48 countries of the U.S. The theory is represented in a bell curve showing the sudden rise in discovery of oil reserves declining gradually as the rate of reservoir discovery slows down. Significant inferences have been made about the peak oil theory. Increase in oil prices will be intensely felt with respect to transportation of energy fuels. Air transport is likely to face a sad demise as it is heavily dependent on oil. Ultimately, the unfortunate picture demonstrates that the tourist-dependent areas will largely suffer because of the fall in the peak. Higher transportation costs signal higher food costs; we are not self-sufficient societies anymore hence, industrial agriculture will suffer. This on the contrary means that the organic foods department will thrive on its own because it is not dependent on oil as much. Peak oil theorists predict the aforementioned possibilities . Expert analysts delve into the evaluation and usefulness of alternative energy sources in the long-run. The alternative sources need to be cost effective; these can be divided into liquid biofuels and other category which involves hydrogen and electricity. Biofuels can easily enter into the transportation market in the next decade. Biofuels have their environmental advantages as well which gives them an edge over petroleum. Experts are still discovering the potential uses of carbon cars, sticks and carrots, hydropower, solar energy etc. The need of the hour is to subsidize agencies and organizations to make efficacious use of these resources (Kopp, 2006). The research analysts studying oil and gas management also focus on the extent to which U.S and other oil producing countries are dependent on OPEC, a prestigious corporation. OPEC plays a major role in determining the prices of oil and