The energy complex includes Crude Oil, Heating Oil, Gasoline (Petrol) and Natural Gas. These assets are burned to create heat, electricity and used in motors to create kinetic energy.
Energies are a finite resource and if demand trends continue there will inevitably become a time when these assets are completely depleted. The supply of these commodities is also subject to a plethora of geopolitical problems with Iran, Venezuela and Russia all being energy rich nations.
As fossil fuel based resources become more expensive the incentive to create renewable substitutes increases. The “Green” issue also receives plenty of media attention and it is in the interest of every individual, business and government that these commodities are utilised and managed in the correct manner. Carbon Emission trading is a financial derivative that provides a market that adds a cost to producing carbon and hence encourages lower levels of pollution. |