Course:ECON371/UBCO2024WT1/NewsWiki/Group8/Week6

1. Source
   1. https://www.carbonbrief.org/analysis-world-has-already-passed-peak-oil-bp-figures-reveal/
2. Problem
   1. The environmental economic challenge is transitioning from fossil fuels to renewable energy amid declining oil demand, which impacts economic structures reliant on oil, and addressing climate change through reduced carbon emissions.
3. Summary
   1. A recent BP report suggests that global oil demand could increase in 2019 due to the economic impact of the COVID-19 pandemic. and fragile climate policy as countries bet on renewable energy to reduce greenhouse gas emissions. Oil demand is also expected to fall sharply. This could drop to 50% by 2040. This change has economic implications. This is especially true for industries and regions that rely heavily on fossil fuels. The report emphasizes the importance of accelerating the development of renewable energy sources to combat climate change. It reveals a lot about how the world uses energy to secure its future.
4. Economic concepts
   1. Peak Oil - suggests that global oil production will reach a maximum point or "peak" after which production will steadily decline due to resource depletion. As oil becomes harder and more costly to extract, supplies will diminish, driving up prices of goods which in turn should encourage shifts toward alternative energy sources or shifts in technology. In the article, BP's forecast shows that oil demand may have already peaked or is going to peak very soon, with expected decreases in the coming decades. Negative Externalities- Negative externalities are unintended side effects of economic activities that affect primarily third parties who are not involved in the transaction or situation. Examples of this include pollution from factories, where the cost of environmental damage and health impacts is taken on by the people of society rather than the business who is doing the polluting. The scenarios in this article, model the global efforts to reduce CO2 emissions to limit global warming, which aims to account for the negative externalities associated with fossil fuel consumption.
5. Application of concepts
   1. using the economic concepts described above, provide an analysis of the environmental economic challenge described in the news item.
   2. 400 word maximum!
6. Conclusion
   1. Short paragraph, emphasizing key points.
   2. 100 word maximum.