Alternative Fuels and Business
While the race for oil fueled a major part of the American economy for the last century, the growing scarcity of the substance has begun to shift financial interest to those companies focused on more sustainable forms of energy. From wind power to nuclear energy, the world is fast realizing the importance of such worthy commodities. Some energies are more plausible, like the currently existent types of vehicles that run on used oils and greases from fast food companies. While the validity and fiscal power of alternative energy based corporations grow, the oil companies and their ties to the economy are dwindling further each day. This leaves a void between the current power of alternative fuel and the former importance of natural gasses, which the former is rushing to fill.
While there are many debatable and potential ties between the United States government and middle-eastern sources of oil, this article focuses specifically on concrete and purely economic based oil companies. One of the most powerful of these is the Anadarko petroleum corporation. Based in Texas, they are among the largest independent oil companies and are responsible for the unearthing of a large portion of American based oil. While there is not much to speak to in terms of unique properties, this heavily involved corporation serves as a perfect example for the decreasing wealth and power of petroleum and natural gas based industries. The numbers for fiscal years do not directly represent a financial hit, but they do show a gradual halt in their previously exponential patterns of growth. Another famous company brought havoc to the entire oil transportation system- BP oil. Their internationally known incident in the Gulf of Mexico sent consumers running to the hills in fear of the potential oil damage. Ravaging the area environmentally, it took some time for society to trust this specific company once more. Now, with the downfall of petroleum deposits, BP has become weaker than ever before. It can be reasonably predicted that similar companies will follow suit in the near future.
Oil franchises that helped found the economic state of America are now given a choice to change their ways and adapt to the trends that will come in the future, or be forced out of the business. Rising companies have taken advantage of the lag in decision making for some of these oil companies, establishing a name for them when it comes to solar and wind power. Getting in front of these classic companies has given room for innovation from new companies to expand, bringing new minds to the table when it comes to alternative energy based technology. One example of such a company is Maxwell Technologies Inc. (MXWL) which was previously established as a general technology and electric company. As the overwhelming hold of the oil companies began to wane, Maxwell took full advantage of the increased interest in other sources of energy. This company took part in the development and manufacturing process of some electric cars to a certain degree, which can be found on the market today.
When it comes to the natural gas crisis and its impact on business, there is a lot to be said that pertains to the current and future status of major companies and investors. The auto industry in particular will be forced to adapt to the environmental implications of classic oil companies. As nearly one hundred percent of current vehicles run on some sort of oil, gasoline, or petroleum based substance, this is sure to have both stockholders and manufacturers scrambling to compete with one another. To make matters more interesting, there has still not been an agreed upon alternative fuel source to replace oil with. There are many developing options, but electric, solar, wind, and nuclear energies are virtually tied for the ability to replace natural gasses. This will prospectively increase the variety of new technologies, and transitively the manufacturers of said technologies.
As the last of the earth’s oil is scavenged by billion dollar companies, smaller businesses have started to wedge themselves into the growing market of alternative energies. The general public will soon see the apparent implications upon international economies, from varying investment potentials to a complete change in the market for energy based items.