Summary
This article reveals that as oil becomes more scarce, it
may lead to "electric vehicles and other technologies
such as high powered wind turbines." The "peak oil
theory" states that when an oil field reaches
approximately half full, it will become harder to extract
the oil and production will decline; therefore, electric
automobiles will be the most obvious solution. As
Neodymium and other rare earth materials are being
depleted, production of electric cars and wind turbines
are expected to increase. These rare earth metals exist
in a fixed quantity, and as we continue to use it, it will
obviously deplete and we will have to find an alternative.
may lead to "electric vehicles and other technologies
such as high powered wind turbines." The "peak oil
theory" states that when an oil field reaches
approximately half full, it will become harder to extract
the oil and production will decline; therefore, electric
automobiles will be the most obvious solution. As
Neodymium and other rare earth materials are being
depleted, production of electric cars and wind turbines
are expected to increase. These rare earth metals exist
in a fixed quantity, and as we continue to use it, it will
obviously deplete and we will have to find an alternative.
Connection
This article is related to chapter 1 of Working with Economics - a Canadian framework because there are a few pages that teach us about scarcity. The dictionary definition of scarcity is "an insufficient amount or supply"; which is what this article clearly illustrates. The article states that the world's rare earth metals and oil are rapidly being depleted, and the result is the possibility of electric cars and wind turbines; as the amount of oil being extracted from the ground is declining, the consumer would have to pay more (opportunity cost increasing), and the price may raise until the consumer is unwilling to pay and must find an alternative.
Reflection
I believe that the oil companies are becoming more greedy and will continue to raise the price of gas. Also, we have no choice but to pay, until the price of electric/hybrid cars becomes cheaper and affordable for everyone. In my opinion, it all comes down to supply and demand - as the supply of oil depletes, there will be a higher demand for it, and the prices will increase dramatically, and when we're unable to afford it anymore, we will switch over to electric cars. Therefore, the success of electric cars is directly connected to the scarcity of oil.
