It is a well known fact that fossil fuels are a finite resource, a resource that has brought prosperity, wars and politics. The discovery of fossil fuels, oil and gas have created global power houses around the world. So what happens now that fossil fuels and fuel oil and gas is rapidly declining? How do countries adapt? Should traders stay away from oil and gas or is now a better time than ever to invest?
The current situation
The current situation has led to many becoming wary of the fuel industry. Oil and gas prices have become extremely volatile due to factors such as the COVID-19 Pandemic, the war in Ukraine and the stress of the second largest consumer of oil and gas, China, slowing down economically. The situation with Russia results in higher oil and gas prices in Europe, and around the world the need for diversification and combatting climate change has led to policies that negatively affect oil and gas prices and availability. Looking ahead, it is possible to run out of fossil fuels in a couple of decades, but is this really a reason to not invest?
Why invest
Renewables are not ready
Despite concerns over a global shift to renewable energy, experts believe there is still high value in investing in the industry of hydrocarbons. Despite the goals of ESG advocates, the bottom line is that there is simply not enough renewable energy to support the billions of humans on the planet. The same applies to the millions of companies that need lights on to operate. It is simply not feasible to reduce energy usage without affecting the lifestyle of human life, and alternate energy sources are not suitable to fully replace fossil fuels for a long time. The constant evolution of industry makes it extremely difficult for the world to move from their dependence on fossil fuels. This is one reason why fuel trading is still such a profitable industry.
Long term reliance for powerful nations
Additionally, many countries around the world have created a world leading nation with oil and gas as the backbone of their economy. Yes, these countries, like UAE and Saudia Arabia have began diversifying their economy to prepare for the end of oil and and gas. However, these countries are not planning on removing oil and gas from their economy. They are simply ensuring oil and gas can keep providing income for many decades to come.
As every day passes, it becomes harder and harder to buy oil and gas since resources are finite. Naturally, as oil and gas depletes, prices go up and that’s where investors are keeping a keen eye. Oil and gas trading is still a very lucrative business and will be for a long time. We at Melpetroix specialize in connecting trustworthy buyers and sellers in fuel trading to ensure our clients get the deals they want.