Improved energy efficiency likely to bring down the importance of oil

Continual technological advancements have improved energy efficiency which is likely to keep on improving with time. The use of renewable fuels has also picked up in recent times. While these advancements work to the benefit of mankind and the planet’s natural reserves as well they will also be bring a decline on the dependency of the U.S on foreign oil.

Experts have analyzed that the consumption of oil will stagnate for a long time to come. The predictions estimate that the consumption of oil is not likely to increase anywhere in the near future all the way up to 2030 due to improved energy efficiency.

Reports from the Energy Information Administration said that the rate in growth of energy consumption has slowed down as compared to last year. There has also been a 3% growth in the use of renewable energy which includes biofuels such as ethanol, wind and solar power.

This is bound to affect the dependency of the United States on foreign oil. Today liquid fuel imports to the U.S account for 58% percent which is expected to go down to 40% by 2025.

Cars that are running on gasoline will further contribute to the decline in the demand for oil. By 2030 around 38% of the cars on the streets are expected to be of the gas-electric hybrid breed. This is a sharp expected increase compared to the 2% that gas-electric cars presently constitute for.

The current economic problems have seen the price of oil fall from a staggering $147 last year to below $50 this year. Oil prices are likely to bounce back provided the US manages to get itself out of the current economic problems. By 2030 the price of oil is expected to rise up to $189.

The fuel efficiency has not come about as a result of a change in the rules and regulations that force companies to produce equipment that emits a lesser amount of carbon dioxide. On the contrary the developments have come about by self driven manufacturers that aim to produce advanced energy efficient technologies.

Energy consumption is bound to increase in the coming years but the source of that energy is likely to change. Sources such as solar energy, wind, hydro energy and geothermal energy will bring down the importance of oil in the future.