Fossil fuel, such as oil, is responsible for the primary source of power generation. It gives new boosts to different innovations in society. The resulting economic growth enables us to better the quality of our life. It has generally resulted in increased productivity, and a new direction for technology to evolve.
The effects of oil-based industries have been profound in different nations. Take the example of OPEC countries. Before the drilling and extraction of the oil, many of their citizens were living in poverty. They were barely managing, and hardly noticeable on an international arena, except few after the discovery of oil, things changed rapidly for them.
Those nations not only became economical giants; their significance also grew dramatically. They became the geopolitical center of the world.
So, the advantage of an increase in the efficiency of oil production is pronounced. Here are some of its benefits:
The effect of an increase in oil production on a country is excellent. It helps them to improve not only the infrastructure but also the living standard of its citizens. They can provide health and education benefits to the deprived sections of society. Moreover, it increases its prestige amongst other nations.
The countries that are already relying on the production of oil to earn their revenue can benefit from efficient oil production. It increases profits. They can focus on more areas of development and come up with new solutions for their domestic problems.
Though the price of oil has dropped internationally, different companies were able to generate more revenue by increasing the efficiency of production.
Uplifting of the Standard of Life
The citizens of a country where an oil boom takes place, witness an improved way of life. New and innovative technology is available for them as their purchasing power increases. The luxuries of life become second nature to them. Due to the trickle-down effect of the economy, even the lower sections of the society enjoy the benefits.
Governments can build parks, hospitals, schools, and community centers for the public. The transportation system also improves, which results in better services.
The secondary benefits of oil production efficiency are that there is more money available for the government to spend. They can invest in new projects. They can fund new technologies and help inventors introduce better products into the market. Although scientific innovation requires a sound mind, often things do not progress due to lack of funds. With enough funds, the government will have room for technology advancement.
Reliance Upon Foreign Nations
The increase in oil efficiency increases the prestige of a nation. The economic upheaval is not only limited domestically, but we can feel its effects internally.
The revenue stream increases. It means that people from different walks of life can rely on themselves and live their life without foreign dictation. Moreover, we can accept more foreign investment without any additional demands. They can live according to their own rules and regulations.
Generally speaking, there is a positive impact on the environment. Since there are fewer accidents, so the environmental effect can be minimized. The extraction process improves, which stops oil spills. The refineries work at their peak efficiency.
The drilling and refining process can be polished. It will prevent any seepage into the earth. They can do this by using resilient seated gate valves to streamline their production. The pipes and valves can be made to minimize any loss in pressure, which can be dangerous both economically and ecologically.
We can create more alternate sources of energy which can help us in the future to reduce our carbon footprint. The oil burns more efficiently than coal. So by increasing the oil production, we can stop using non-proficient sources.
The use of oil can give us time and money to develop alternative energy resources. We can fund an alternative form of energy. Since the research and development of new ways of energy production are expensive. Only by earning more revenue can we justify such expenditures.
End Economic Disparity
A nation which is growing in wealth due to oil-based development can support other countries as well. It creates a feeling of mutual respect and brotherhood. It ultimately promotes the economy of both countries and a sense of goodwill amongst its people.
On a national level, the government can distribute additional revenues from the oil amongst the poor people. A state like Alaska divides a part of the income from the sale of oil amongst its native citizens.
End Energy Crisis
To curb energy crisis, it is essential that we come up with solutions with for increase in production of oil. One of the ways is to increase the efficiency of output. The other viable option, which is searching for new sources for drilling, can be quite an expensive venture. New and better techniques in extraction and delivery can save us the trouble of finding new oil well.
With the availability of oil in such an abundance, the price of oil will go down. It will allow people to use oil freely. Power companies that use oil as a fuel source can operate at their peak efficiency.
The oil-based economies are primarily concerned with the production and distribution of oil. So all their efforts are based around the fact
The technology exists to replace gas and coal with oil in many fields. Though oil is at an all-time high in terms of price, when the supply increases, then the price will automatically fall. It will lead the individual to use oil as a fuel source. Moreover, the efficiency of the oil outranks both coal and gas.