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.
I also believe that the oil companies are getting very greedy. They are taking advantage of the supply and demand of oil. Every now and then my dad would remind me how much it costs for him to drive me to school when I can just walk. However, I am a lazy person and with the rest of the people in this world we are all contributing to the "demand" for oil. I am glad that in Vancouver the Canada Line Sky train has opened. This gives an alternative to driving down to Richmond. I believe that oil would not be depleted anytime soon. Some point in the future the demand of oil would be so high and the supply of oil would be so low, that it would become impractical to use oil. Perhaps we would switch over to hydro power and electric power. As of now, we will all have to suffer the price of oil!
ReplyDeleteIt's amazing how every source is rapidly depleting thus forcing us to resort to other alternatives. Scarcity is a main proponent in economics and we must look at how to use our resources wisely and look at it in financial terms. I disagree with how you see oil company's are being greedy, perhaps they are to some degree, but it's mainly because scarcity has forced the raise in prices in oils. It is our fault that the oils are decreasing because of our overwhelming usage of it. We do have choices, we can resort to more Eco-friendly and money saving alternatives like taking the bus or taking the bike. As far as resorting to electric cars, it may be a better alternative and soon enough, our only alternative.
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ReplyDeleteI also agree with you that because of the amount of gasoline we are able to extract, and the huge demand for gasoline prices are rising. However, i don't think switching over to electric cars will work out too well. As we already use huge amounts of electricity if everyone starts to use electric cars a lot more dams would need to be built. This would have a huge affect on the natural environmnet. I think we should start to develope new sources of energy that could be reused or create an energy source from wastes.
ReplyDeleteScarcity is a really important concept to keep in mind while economics. I agree how it's not all the oil company's fault for increasing their price in order to stay in business, but it is important for them to do so due to the state of the economy. I think that consumers should use more of the transit like the bus or sky train. Sometimes it is hard not to use cars at all especially if you go to places that don't have any bus routes yet. A lot of people mention how hybrids are Eco-friendly cars, but not everyone can afford one. Perhaps in the near future we might be able to find another way of getting around without using gas, at an affordable price.
ReplyDelete-S.Tran
tommy, canada has a lot of electricity. We just sell them to other countries. (and make alot of $$$ from that!)
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