How Will Climate Change Influence The Future of Business?
It has become increasingly evident that the supply of fossil fuels available is limited. Concerns over climate change have made people more aware of the effect that the overconsumption of fossil fuels can have on the environment. With many businesses relying heavily on energy from conventional forms, such as oil from wells, this limitation will undoubtedly affect industry in the future. Businesses that use substantial amounts of energy and want to grow and expand in the future need to find ways to deal with increased demand for energy and be prepared to use alternative forms for some of their needs. Here are some things to consider when thinking about how climate change will influence the future of business.
Alternative forms of energy are gaining interest as companies have begun to see that they must explore alternative ways of getting the energy they need in the future. This increased popularity and awareness has helped lower the cost of establishing alternative ways of producing energy for industrial as well as consumer consumption. However, alternative forms of energy still have a long way to go in order to be a major component in creating industrial energy. Wind turbines take up space and can only be used effectively in areas with steady winds and not a lot of larger gusts. Solar panels can be installed on rooftops, but beyond that you have to build infrastructure for more power. Sometimes, the costs of implementing alternative energies are high enough that companies do not want to do it. After all, if it takes ten years to see a return, they may think it is better to invest the money in something that provides a quicker return on their investment.
Drop in oil prices helps business grow
The recent low oil prices have helped a lot of businesses that ship a high volume of products. Manufacturers have also saved a lot because they can get the raw materials they need delivered at a lower shipping cost as well. This saving adds up to a lot of money being saved through the entire supply chain of a business.
The future of industry and energy is going to feature a combined approach to meeting worldwide energy needs. As prices for oil have climbed, unconventional ways of obtaining it have become more financially feasible as well. When oil was cheap, it was not profitable for companies to extract it from alternative sources such as tar sands or get gas from shale. With more resources available, the price of energy will not rise as fast as it could. Increased stability in energy prices will help industry manage their costs better and possibly prevent some from being forced out of business due to too abrupt of a rise in the price of energy. When costs are kept low it also helps minimize cost increases to consumers. Daniel Yergin, author of bestselling energy books, is an expert on energy policy and the coming changes that industry is going to have to face in order to succeed in the future. He believes that alternative forms of energy and unconventional oil will help prevent a total energy crisis and help keep prices more steady.