the uncertain and unpredictable nature of the ‘oil trade’, it is clear that the global economy should either become accustomed to the odd shortage or devise an improved model capable of forecasting future consumer and industrial needs for fuel. The bottom line may be that the oil industry for the most part would not want to commit to the unprofitable development of a new model since in the case of Saudi Arabia, the sudden demand put them into a position of absolute advantage (OPEC cannot control the oil trade efficiently and the Saudis are not stepping up production as quickly as the could-do). In the long run, it would be in the global community’s best interest to promote alternative energies. In my humble opinion, the sooner the world converts to non-depletable power sources the better. As was demonstrated by this oil shortage and others like it, the industrial world is becoming ever more dependant on fossil fuels. Eventually the time will come when conversion is necessary and by waiting, without taking the initiative, billions of dollars more will be wasted. Since the 1980s, the world economy has followed year after year of new record highs and the trend is likely to continue. As further industries and motorists become dependent on fossil fuels, the more costly it will become to undergo a conversion. Although it may be argued that at this point in time alternative energy, such as solar power, is both uneconomic (opportunity cost…Oil is a cheaper alternative), and incapable of supplying millions, this is mainly due to lacking funds, and the physical capital necessary to efficiently construct the apparatus. ...
