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Meanwhile, Shell, which is the third leading oil company, has gained a total of $23 B profit last year. This should be an enough reason to celebrate, but the huge oil company is currently facing the need to improve and expand its oil resources. Otherwise, it will run out off supply in the future. According to reports, Shell was only able to replace between 60% - 70% of the gas it used for production last year. In 2004, the percentage was even lower with only 19% or replacement.
Shell, however, is making use of its large assets in order to meet the stiff market competition. Its oil reserve projects located in Nigeria, Sakhalin Island, and Gulf of Mexico are currently underway. The success of these projects would definitely empower the company's future possibilities.
Regions in the U.S particularly East Coast and Nigeria are also facing issues with regard to their oil supply. This problem may eventually result to changes in the price of fuel. This situation is primarily caused by the shift in the chemical used in the fuel refining process. Formerly, MTBE (methyl tertiary butyl ether) was used during the process. The use of MTBE, nevertheless, led to problems and protests regarding water pollution and the contamination of water supply. As an alternative, fuel companies in the U.S particularly in the East Coast and Texas are utilizing ethanol. The problem though is that ethanol is not abundantly produced within the country. Moreover, the fuel refining needs are greater than the amount of reserve available. As a solution, the U.S government is currently importing ethanol from Brazil while it continues to construct more ethanol plants within the country.
The campaign for energy independence in the U.S is also receiving negative feedbacks. Critics such as Tom Friedman of The New York Times commented that the government should focus on other more relevant issues aside from it. The claim that while energy independence may be motivated by noble purposes, it might not be the wisest move now. The government should look for other more practical alternatives. Besides, the big budget energy independence demands could be allotted to the other sectors of the economy and government.
The Various Auto Companies Continue to Grow and Expand in the World market.
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