Reference no: EM132858484

Our societies are currently very dependent on oil and gas and their byproducts as sources for energy, heat, plastics, and many more products. However, even though these sources may be available for 100 years or more, we are steadily depleting these sources of natural capital. Moreover, as we extract and burn these fossil fuels, we are aggravating a range of climatic problems. The oil industry has gained much wealth in the process. Therefore, it can be argued that firms in this industry have added responsibility to find effective ways of balancing these diverse concerns.

The debate about how much emphasis should be placed on one or more of the following alternatives:

-the oil industry should work to reduce pollution at extraction and production sites. Taking even a medium-range view, it makes sense for the industry to take the lead in championing carbon taxes or equivalent public strategies to reduce air pollution.

-the oil industry should take major steps to develop alternative sources of energy and heat. Acknowledging this imperative, a number of firms in the oil industry have redefined themselves as energy companies. Out of their own self-interest, many firms in the oil industry are championing solar, geothermal, and bio-thermal energy. Many have focused on the possibilities of biofuels. However, some biofuels, like that produced from soybeans in Brazil, are far more cost-effective than others. In some cases, the costs of growing and transporting biofuels have exceeded their value.