If you are hoping that in the future fuel costs will reach a peak and then start to reduce then I am afraid you are going to be bitterly disappointed. There may well be short term reductions, however it is inevitable that fuel cost will not only continue to rise, but rise significantly.
Over the last two hundred years we have become dependent on fossil fuels such as gas, oil and coal, which have allowed us to develop our world at a staggering pace. All of this development in terms of infrastructure, buildings and the like requires large amount of energy, to heat, cool, ventilate, provide light and power etc. If we are to maintain or more than likely going to increase the rate of development around the world then we also need to consider alternative ways of creating this energy. The problem with fossil fuels is that it is a depleting resource and at some point in the future it will run out. Now this is unlikely to be in our generation or possibly even a number of generations in the future, but one thing is for certain in that it will actually run out. If you are under the impression that we should not be concerned about this now, as it will not have any major impact on us in our lifetime then think again!
The problem with anything that is in short supply is that basic economical principles come into play. Fossil fuels are a prime example of this. Remember they are a depleting resource and therefore a commodity in short supply. The impact of this is that when demand is high (which it always is) and supply is limited (which it is), then market conditions allow energy providers to increase costs as they know that they are providing something that people actually need. The market then adjusts to these increased costs. The graph below demonstrates the cost increase of oil, gas and electricity over the next twenty years:
‘Rather unsurprisingly, all four demonstrate price hikes over the period, though some are more dramatic than others. Electricity and gas - the two most-used household energies - have nearly doubled over the last seven years of the index, owing to their ties with oil prices, as well as a number of other factors. The industrialisation of foreign nations, plus growing international prices for the commodity, has forced coal costs higher for UK citizen’.
If you are hoping that in the future fuel costs will reach a peak and then start to reduce then I am afraid you are going to be bitterly disappointed. There may well be short term reductions, however due to the economical principles described above it is inevitable that fuel cost will not only continue to rise, but rise significantly. Of course, the majority of articles that you will see in the media focus on the damage to the environment caused by greenhouse gas emissions, particularly carbon, from the burning of fossil fuels. This is something that we need to deal with immediately, however I would suggest that if you were to talk to most people on the high street they would be more concerned about the increase in fuel cost rather than concerns about climate change and the need to reduce greenhouse gas emissions. The positive thing however, is that if we can create energy by using alternative renewable technologies then we can deal with both issues at the same time!
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