Buying Oil Investments – Chapter 12: Conclusion

This is chapter number 12 out of 12. Read the rest:

Read Buying Oil Investments – Chapter 1: Introduction
Read Buying Oil Investments – Chapter 2: Getting started in oil investments
Read Buying Oil Investments – Chapter 3: Factors which affect the price of oil
Read Buying Oil Investments – Chapter 4: The determinants of Oil Prices
Read Buying Oil Investments – Chapter 5: Trading in Oil Futures: (The impetus of the market sentiment)
Read Buying Oil Investments – Chapter 6: Investment Options
Read Buying Oil Investments – Chapter 7: Exchange Traded Funds
Read Buying Oil Investments – Chapter 8: The Risks Of Investing In The Oil & Gas Industry
Read Buying Oil Investments – Chapter 9: Advantages Of Investment In The Oil & Gas Industry
Read Buying Oil Investments – Chapter 10: Investments in Gold versus Oil
Read Buying Oil Investments – Chapter 11: Peak Oil

As we are consuming a non renewable source of energy, the date for peak oil will definitely arrive. When that day does arrive, investors will be presented with an array of other viable opportunities to capitalize on. Regardless of the kind of vehicle which the investor will choose, we must never forget that our way of life will never be the same when that day comes. Thus, in order to survive in a changing scenario, be it economic or environmental, we must learn to adapt. We must always remember that fossil fuel once depleted can never be placed.

Therefore, a more permanent solution for our insatiable appetite for cheap energy must come from a renewable source of energy. We will need to look for ways other than oil to harness for our energy source. As the date for peak oil is predicted to be decades away, this implies that we still have time to develop the necessary technologies to harness alternative sources of energy. Sources being looked at now include solar energy, geothermal energy, hydro energy and wind energy. Another attractive and viable alternative which our current society is exploring and learning to adapt to is the area of biofuel.

Biofuels are fuels which are derived from biological matter. As they are biological in nature, they are a renewable source of energy. The most common of these types of biofuels are bioethanol and biodiesel. Bioethanol is derived from the fermentation of sugar or starch. Biodiesel is created from mixing alcohol with vegetable oil. Currently the processes of extracting energy from these bio sources are not efficient or cost effective thus they are still in the development stage. But as our society becomes more advanced technologically, it is likely that these biofuels will take the place of fossil fuels as the source of our energy needs. Not only are the sources of these biofuel renewable, they are also cleaner. This is in line with our changing awareness of the need to protect our precious environment for our future generations.  

More money is being spent now in the research and development of new and renewable energy sources, while more and more people are opting for the hybrid and lower energy vehicles showing a change of attitude. Investing in oil while still a good investment option for the short term, won’t always be that way.