BUSINESS AND PHILOSOPHY

Business Context and Philosophical Concepts

Business Context and Philosophical Concepts

Introduction

The paper attempts to relate a business context with a particular philosophical concept in a holistic context. The business context selected is “the diminution of energy resources such as oil” while the philosophical concept used for the purpose of explaining is “Skepticism”. The paper begins with a brief overview of the business context selected providing a good understanding. It then explains the selected philosophical concept so as to build grounds for debating upon the application of the selected philosophical concept on the business context selected.

Discussion

Diminution of Energy Sources - Oil

Oil is still the main source of energy worldwide, accounting for 33% of the total. The other two main fossil fuels, coal and natural gas account for 28% and 23% respectively (Dargay & Gately, 1995). The global oil markets are experiencing a period of increasing scarcity and the situation could have a significant impact on global growth (Kilian, 2009). The continued rise in oil prices during the last decade suggests that global oil markets have entered a period of increased scarcity. The risk that such shortage or its impact on growth is more significant. The shortage is the result of the continuing tension between rapid demand growth in emerging countries and supply constraints. There are an increasing number of mature oil fields, which has increased both the cost of production as the opportunity cost of each additional barrel is offered in the market (Dargay & Gately, 1995).

In this world of finite resources, the annual increase in global population and unsustainable development results in an excessive increase in consumption of oil leading to a constant shortage of resources (Kilian, 2009). It is hard to think that both the global population and the various world governments, especially those that are part of non-producing nations, are aware of the seriousness of the situation. The only indicator that we could bring to reality is one that allows us to estimate that global action is being taken both to reduce oil consumption, and to use it more efficiently. Each passing year increases the seriousness of the situation (Adelman, 1986).

Currently, daily consumption of crude oil is approximately 86.5 million barrels. It is estimated that by 2030 the world will consume about 150 million barrels of oil daily (Dargay & Gately, 1995). Consumption figures by themselves do not provide an adequate overview of the situation; however, estimates that the global oil demand is on the rise (Lynch, 2002). This will involve substantial changes in world politics, changes that somehow we are experiencing since 2002, when a year before the invasion of Iraq the price was about $ 20 per barrel, rising in 2003 to $ 30 (Kilian, 2009).

Forecasts timing of oil shortage were basically made during the 20th and 21st centuries. In the summer of 2008 the prediction was made that by 2013 the world will face a shortage of oil, as with the current needs of the growing new sources of oil will not be opened (Adelman, ...