Inflation: The Result of Increased Demands Manufactured from Crude Oil
The world is silently slipping into a future of inflation and shortages in perpetuity as the society demands for the products and fuels manufactured from crude oil are exceeding the supply, available from the dwindling number of refineries.
There were almost 700 oil refineries around the world in January 2020. The continuous regulations, aging equipment, permitting delays, and the worldwide support of the Environmental, Social, and Governance (ESG) to divest fossil fuels, level of integration, and the right operating model will be crucial for the survival and sustained profitability of refineries.
In the upcoming years, one in every five oil refineries are expected to cease its operations, which is about 140 closures on the horizon. It can indirectly affect the increased demand for the petroleum products and fuels manufactured from crude oil and result in inflation and shortages.
To meet the increasing demands, Asia is planning to build 88 new facilities, some of which are already under construction. By comparison, Europe is set to witness an addition of 12 petroleum refineries.
An energy agnostic, Ronald Stein, born on April 29, 1941, has made his share of research upon energy, its consumption, and the surge in its demand in the forms of electricity, the products made from oil derivatives manufactured from crude oil and the fuels for the various transportation infrastructures.
Exploring the world of energy, he has co-authored a Pulitzer Prize-nominated book, “Clean Energy Exploitations – Helping Citizens Understand the Environmental and Humanity Abuses That Support Clean Energy,” and is an internationally published columnist of Op-Ed articles that focus on energy literacy. Being a true environment safety advocate, he is also the co-author with Todd Royal of “Just GREEN Electricity” and “Energy Made Easy.”
All his work has portrayed his restless passion and efforts to spread awareness and literacy about energy, fossil fuels, and renewable energy resources. In addition, these books are great sources in proving the fact that life and world economies are incomplete without energy resources, electricity, and products and fuels manufactured from crude oil. His vast knowledge has enabled him to become a policy advisor on energy literacy for The Committee for a Constructive Tomorrow and The Heartland Institute.
To teach energy literacy through interactive conversations from kindergarten all the way up to high school and across all subject areas, he has taken the initiative named “Ron’s Fireside Chat.” From this platform, Stein provides story-rich examples to help people understand how they can bring change, through their own literacy, to the energy industry. It also empowers the population with vocabulary and concepts to articulate visions of sustainable, fair futures and be able to have a conversation on energy literacy at the dinner table.
According to Stein, the worldwide demand for products made with oil derivatives and fuel manufactured at refineries continues to increase. So, if many of the refinery manufacturers are expected to be shut down soon, the supply chain will be hindered significantly. It will place tremendous pressure on continuous shortages and inflation. Stein has put forward his research stating that it is an undisputable scientific fact that renewables cannot manufacture any of the oil derivatives that are the basis of thousands of other products used daily. This fact is an alarming situation for the world to consider, that wind turbines and solar panels can only generate electricity from breezes and sunshine but cannot manufacture anything for society.
With worldwide refinery closures outpacing new constructions, inflation and shortages are likely to be the new norm that will inflict regressive expenses upon those countries and citizens that can least afford it. Thus, the world needs to think of all the consequences that might result from eliminating crude oil from it, without first having a replacement for those crude oil properties that now support societies and economies.
Stein’s energy literacy writings are diversified and have covered almost every aspect of energy. Looking at his hard work and continuous efforts, people can seek enough information to expand the span of their energy literacy knowledge.