Energy Industry Essay Example | Topics and Well Written Essays - 1250 words

Energy Industry - Essay Example Alaska, California, Louisiana succeedingly ranked in its respective slate in 1989 for generating 41% of oil but have degraded its supply contribution to 17% of total oil output recently (Styles, 2013). This decline is supplemented with the development of extractive industry at New Dakota which replaced Alaska in 2012and is contributed further by Colorado, Oklahoma and New Mexico’s rigs (Styles, 2013). The risk however is showed by oil generation reduction when the principal pipeline of onshore oil production became a funnel for oil importation (Styles, 2013). There is imminent reduction of New Mexico’s oil supply too following the Deepwater Horizon incident in 2010 (Styles, 2013). Economists recognized that the challenged nowadays is how the oil supplies from the upper part of the country to be distributed in the regions needing more of oil supply efficiency for domestic market demands (Styles, 2013). Such meant that the company therefore should be re-strategizing its w ays to balance the distribution of oil from region with crude surplus to other areas by transporting or shipping the refined products via multiple tankers to the Midwest (Styles, 2013). Recognizing that there is reduced supply after more than two decades of extraction, the challenge on oil production and efficiency distribution is doubled, notwithstanding fact that there are Oil Companies now eyeing oil resource in Monterey deposit (Styles, 2013). Suffice it to say, there is further challenges in the participation of the states in the west coast and hence, economist purviewed that California, Oregon, Nevada, and Washington will be primordially affected when oil production and distribution disruption happens (Styles, 2013). As an adviser to the consultant of the oil industry sector, the following vulnerabilities are therefore significant for consideration: 1. Improving quality control for oil generation and control.- Oil companies have been confronting problems on facilities and pipe lines safety amid issues that have happened on leakage or destruction in some significant part of the generation or oil refinery plants that caused and cost significant amount of destruction. 2. Problems involving social acceptability of tapping oil reserves- Strong sentiments on climatic changes, environmentalism and protection of indigenous peoples rights, as well as strong presence of armed elements over their lands are major causes of resistance from regions where proposed tapping of oil reserves are abound. Company managers must look into these concerns and seriously deal states and communities in rigorous dialogues. They must also be ready of measures to prevent potential outbreak of violence. 3. Future oil production and distribution efficiency for the Midwest states. The significance of this matter is highly elaborated in the preceding paragraphs of this paper. 4. Adaptation to renewal energy. Review the capacity of renewable energy production of the country and valuate its supplementary contribution to meet the demands for energy for Midwest states. Evaluate if the states can opt to maximize the potentials of renewable sources of power and its feasibility to double or triple it adaption (Department of Energy, 2013). Concerns relating to climatic changes and weather patterns must be accounted for serious consideration too on how renewable energy be maximized in accord to weather