High Oil Prices and US Economy
Oil prices have been steadily rising for years, but while this spelled trouble to the economic rate of the United States in the past, it does not anymore. Increase in oil prices adversely harms the U.S. economy. However, high oil prices have foreseeable long term benefits to the country. Oil spillage in land and water harms the ecosystem. Also, the emission of smoke by vehicles harms human and animal health. Increasing oil prices is a sure step to encouraging environmental conservation through the development of alternative forms of energy and better fuel-efficient vehicles. The debate about whether charging high oil prices benefits the U.S economy or not has attracted many researchers, and this forms the thesis of this essay since oil exploration, and production is a crucial industry that develops the U.S economy.
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High oil prices encourage the use of alternative forms of energy and technologies. According to the U.S. Energy Information Administration, approximately 98 percent of the U.S. transport industry relies on oil. As a result, there is environmental pollution in the country. Oil spillage is continuously causing large environmental disasters. The increased use of oil damages the ecosystems and impairs their survival too. Also, burning of oil by vehicles harms the air that people and animals breathe. In this regard, increasing oil prices in the U.S is the right strategy of discouraging people from its excessive consumption and reliance. Additionally, high prices on oil will encourage people to use more fuel-efficient vehicles and technologies that conserve the environment. For example, the use of hydroelectric energy as oil supplements.
Also, high oil prices make new technologies viable. Cheap oil products are problematic to the industries that seek to supplant oil. While a good number of people agree that vague and nebulous costs exist in the oil assessment and use (pollution), the U.S. has always remained reticent in translating these costs into high energy taxes. However, it is not sure whether higher taxes on oil help in mitigating environmental damage beyond curbing consumption. Nevertheless, with low oil prices, it is difficult for cleaner energy technologies to emerge and effectively compete on price. With the increase in oil prices, although, numerous techniques and ideas have been invented to counter the large use of oil by vehicles and other people’s activities. A path towards viable mass market all-electric cars has come up to replace oil usage. Increased interest in R&D in the field of non-oil alternative energies persists. Such processes give the U.S economy a lot of fringe benefits.
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Finally, high oil gases trigger innovation companies to develop alternative forms of energy which are affordable to the immediate citizens. One world’s emerging technology, electric vehicles has emerged as an approach to reducing the use of oil by vehicles. Numerous vehicle technologies have helped the U.S. transport sector in steering automobiles away from fossil fuels dependence such as oil. Electric vehicles are energy efficient and environmentally friendly. Also, battery-powered vehicles have been invented and use no-gasoline or oil fuel hence limiting the emission of dangerous gases such as carbon dioxide. With all these innovations and emerging technologies, the U.S. oil industry has kept prices high. As a result, people have been forced to start shifting consumption to plug-in hybrid electric vehicles that are environmentally friendly. In conclusion, the use of oil by vehicles owners needs to be discouraged by charging high prices on these oil products.