Monetary Policies And Alternative Fuels
The topic of discussion worldwide is the increasing price of crude oil. The discussion is unlikely to die soon. People are growing dissatisfied by the trend that the oil market has recently seen. Everybody wants that the prices be controlled. This is especially because high price of almost all the commodities has created problems in every sector of life. |
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The need of the hour is to control the price rise by defining the limit of the increase. Unfortunately, this task cannot be given to the government or an oil company. Both will work for their own profit. Supply of all commodities depends on their demand. Oil, is no different. We need to understand the policy through which the government manages to keep the supply of crude oil so low. Half of this answer lies in the government policies that had been written decades ago but are still being followed.
There are many constraints since some laws do not encourage exploring, drilling and refining the oil available locally. This has made us dependent on other oil markets, especially on the Middle East. Further, the war in Iraq has added to our woes. Rate of one barrel of crude oil sky rocketed from $28 to $70. Today, it is way beyond $70. With Iraq witnessing political unrest, its production of oil has dropped considerably. Iraq has organizations opposed to foreign army on their land. They have damaged various oil pipelines.
In such times, many of the global markets are now looking at alternative fuels to save the world from economic crisis. We cannot predict for sure the rise or fall of the crude prices. Nor can we calculate how much will be the price of a barrel of oil in three days from now. However, one can easily prophesize the cost at which alternative fuels will sell. If we use wind and solar energy, they will be made available at fixed prices. This will be better not only for consumers but also for companies. Steadfast prices will protect them from the rise and fall of the otherwise unsteady market. Many industries are looking at the option of producing alternative fuels. They plan to allow no government interference in their economic policies. Some of them even joke of having their own future stock exchange market!
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In its natural form it can be difficult to use nitrogen as an alternative fuel. There are two reasons for this. Firstly, nitrogen is an inert organic element. So it when it reacts with a metal or with an oxidizer, very little energy is produced. Secondly, the exhaust released from nitrogen would mainly be nitrogen dioxide; this is highly poisonous in nature and can cause serious health issues in humans. 
