May 29, 2013

The Future of Energy

The trend is not new, price of oil will increase. This is due to the fact that supply of oil is limited. As a result, as supply of oil goes down, price goes up. Because of this trend, many car manufacturers shifted to producing fuel efficient vehicles.

Today we can still afford to buy energy (oil, gasoline, electricity, and etc.) at higher price compared to previous years. But what if the supply of oil comes to end? In that case, we will have new source of energy; renewable energy. Yet, this will be more expensive than today's (real) cost or price of energy. Thus, there is no way that price of energy will go down unless we saved and minimized the use of it.

Given that we have maximized the use of renewable energies and its other forms, then the market will be efficient in correcting the misused of energy through price hikes.

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