Friday, September 30

Kavan Choksi On the Impact of Fossil Fuel Costs on The World’s Economy

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It is no hidden fact that the prices of the gas and oil industry virtually decide how the global economy functions. There has been a lot of discussion and debate about its impending decline in the international market. However, experts in business and finance cannot deny that the oil and gas sectors in the world are very relevant even to this day. 

Kavan Choksi- the importance of the oil and gas sectors in the world 

According to finance and business expert Kavan Choksi, statistics around the globe today show that oil constitutes around a third of the energy in the world. With the life expectancy of the global population increasing every year, the demand for energy and power is growing profoundly. 

The demand for oil and gas is rising every day across the world 

This demand for oil has now been taken to extreme levels that are mind-boggling in nature. Experts in economics and business suggest that energy is the critical driver for globalization in the world today. 

Model technologies need a lot of power to work smoothly 

According to him, current technology existing in the world today cannot function without power. It is true that there are several sources of renewable energy, and multiple practices that are eco-friendly in nature have emerged, but the reality is fossil fuels are here to stay. The fossil fuel sector is not going to disappear from the globe fast.

What do experts say?

He shares the insights of experts on fossil fuels to explain better the direct impact of the fossil fuel and oil industry on the economy. There is one sector in the global economy that thrives on fossil fuels, and this is the transportation industry. Today, this sector is one of the most booming and expanding sectors of the economy. It is considered to be the keystone to the logistical network across the globe. 

The transport industry needs a constant supply of oil for its daily operations 

According to Kavan Choksi, if you examine the transportation sector closely, you will find there are several companies in this field across the world. This means they need constant and regular energy in the form of gas and oil for daily operations. The transportation industry is growing, and so for decades to come, the demand for oil and gas will surge too. 

The need to create eco-friendly technology for oil extraction

Most people are under the mistake that alternative forms of power like natural energy are like oil and gas. They believe that the wind and solar power needed for the production of electricity are similar to the levels of fuel consumption that the transportation industry in the world needs. 

According to him, there is no substitute in the tangible form of oil, and so emphasis needs to be made on the extraction of oil through technologies that emit lesser carbon emissions. Here, innovations and developments need to be made in refineries that permit fossil fuels to stay competitive with their renewable energy peers in an economy that is eco-friendly in nature.