Renewable energy will be the most significant challenge for the oil Research Paper

Renewable energy will be the most significant challenge for the oil industry. Explain, by citing three reasons, whether you agree or disagree with this statement - Research Paper Example It is not true that renewable energy will be a challenge for the oil industry because of many factors. The renewable energy requires more infrastructure compared to the petroleum oil (Piotrowiak (2012). This process makes the consumers abandon the renewable sources of energy for oil. The price of oil usually fluctuates. It creates uncertainty in the market. The consumers are subjected to speculation. This process affects the prices of other products given that the industries rely on petroleum oil to run their plant and machinery. The petroleum oil undergoes many processes before obtaining pure oil. However, the other sources of energy like wind energy involves many processes. The transition to the use of electric cars will need an industrial transition from the old model spare parts to the manufacturing of electric vehicle spare parts. The adoption of renewable energy vehicles will require continuous monitoring and control software in order to maintain proper functioning of the vehicle. Thus renewable energy will not be a major challenge for the oil industry. The process will cause an additional cost to the owners of vehicles. According to Chan (2012), the marginal returns from the transport business will drastically reduce. Consequently, many potential investors in the transport will be sent away. The electric vehicles will also require extensive facilities for the safe transmission of electric energy to the intended destination. The transmission facilities will require extra electric energy. The cost of using this form of energy will be high. The common form of renewable component, ethanol, and gasoline are not suitable because of the high oxygen conte nt of the mixture. The high oxygen content makes the mixture unsuitable for pipeline transmission. Safe transmission is financially constraining. The additional costs make the preference of the renewable energy sources