Weeks of global instability in some of the world’s foremost oil producers, namely Iran and Venezuela, has led to a historic spike in crude oil prices globally. This has been overwhelmingly positive for other oil producing nations, who have seen a boost to inflows of cash from the rise in demand.
This will undoubtedly have a knock-on effect to the wider global economy, as this will surely trigger new investment into wider asset classes, including renewable energy.
The current economic climate could make it easy to forget that just two years ago, the oil industry was embroiled in the biggest price slump of the modern era.
From 2014-2016, oil prices dropped to below $27 per barrel, an enormous discrepancy from the $80 a barrel we have seen in recent days.
Through all of this, though, one overarching fact cannot be ignored: fossil fuels are a finite resource.
One of the main contributing factors to lessening oil demand in recent years, and especially in the purge of high oil prices from 2014-2016, is the emergence of alternate energy sources.
It is of vital importance, now more than ever, that we do not forget the principal reason investment into renewable or alternate forms of energy is so important. Ultimately, we are going to run out of oil, yet unsurprisingly, we will still need energy.
Investment into renewables in the UK was at its lowest levels since 2008 last year, despite reports from BP that the world will run out of oil in the next 53.3 years. It is then entirely feasible that within many of our lifetimes, we will need to make the total shift to alternate fuels.
The shift to renewables is fundamental in securing our futures, and luckily, global renewable energy investment total was up 2% on 2016 levels. To find out how you can get involved in this exciting industry, as well as seeing up to 12% returns on your investment, enquire via our website.