According to my view, the price of oil and gas will go up. There are many reasons to support my opinion. Firstly, Saudi Armco controls the price of oil because it is the largest producer of oil in the oil-producing club of nations knows as OPEC and also the largest exporter of petroleum among OPEC countries. The country's current reserves are around 16% of the world's total reserves. Saudi Armco supplies one out of every eight barrels of oil in the world. It is the only company that can produce a barrel of oil for less than ten dollars and if it goes public, the company has to increase the price to make more profit. Saudi Arabia partially trades Saudi Armco for a valuation of 2 trillion dollars and to get that valuation, the company will have to disclose everything if they want to attract potential Investors. Every decision they make has to be in the interest of the stakeholder. Armco was making money for the benefit of states but if it goes public then they have to think about their quarterly report.
The second reason to support my opinion is that Fossil fuels are limited and at the current rate of use oil will be exhausted. Saudi Arabia has used 100 billion barrels in 30 years and has around 260 billion barrels left which means within 70 years oil will be rare. Anything whether it is oil or gold price increase, has it become difficult to find. And if the price of oil increase then definitely price of gas increase because oil is an ingredient for gas.
At this time we do not have enough Technology to find an alternative to oil and gas. There are some alternatives like electric vehicles, solar energy, and hydrogen engines but the problem with them is that there are difficult to use. Electric vehicles take 10 hours to recharge which cannot be run on long routes. Solar Energy can't be generated on rainy or cloudy days. So, our only option is fossil fuels and we are ready to pay for it at any cost.
According to my view, the
price
of
oil
and gas will go up. There are
many
reasons to support my opinion.
Firstly
, Saudi
Armco
controls the
price
of
oil
because
it is the largest producer of
oil
in the oil-producing club of nations knows as OPEC and
also
the largest exporter of petroleum among OPEC countries. The country's
current
reserves are around 16% of the world's total reserves. Saudi
Armco
supplies one out of every eight
barrels
of
oil
in the world. It is the
only
company
that can produce a
barrel
of
oil
for less than ten dollars and if it goes public, the
company
has to
increase
the
price
to
make
more profit. Saudi Arabia
partially
trades Saudi
Armco
for a valuation of 2 trillion dollars and to
get
that valuation, the
company
will
have to
disclose everything if they want to attract potential Investors. Every decision they
make
has to
be in the interest of the stakeholder.
Armco
was making money for the benefit of states
but
if it goes public then they
have to
think
about their quarterly report.
The second reason to support my opinion is that Fossil fuels
are limited
and at the
current
rate of
use
oil
will
be exhausted
. Saudi Arabia has
used
100 billion
barrels
in 30 years and has around 260 billion
barrels
left
which means within 70 years
oil
will be rare. Anything whether it is
oil
or gold
price
increase
, has it become difficult to find. And if the
price
of
oil
increase
then definitely
price
of gas
increase
because
oil
is an ingredient for gas.
At this time we do not have
enough
Technology to find an alternative to
oil
and gas. There are
some
alternatives like electric vehicles, solar energy, and hydrogen engines
but
the problem with them is that there are difficult to
use
. Electric vehicles take 10 hours to recharge which cannot
be run
on long routes. Solar Energy can't
be generated
on rainy or cloudy days.
So
, our
only
option is fossil
fuels and
we are ready to pay for it at any cost.