What Makes Non-Renewable Resources Important And Controversial?
Definition
Non-renewable resource
An energy resource that will run out on a relatively short human timescale (roughly within 500–1000 years) because it is used much faster than it is naturally replaced.
- Non-renewable resources provide much of the world's energy, and they supply raw materials for industry, transport, agriculture, and everyday products.
- At the same time, they are finite, unevenly distributed, and often linked to environmental damage, political tension, and economic instability.
Note
- A key sustainability challenge is that global demand for energy can grow quickly, but new non-renewable supplies take a long time (and large investment) to develop.
- This mismatch contributes to price swings and political pressure.
How Long Does It Take For Fossil Fuels To Form?
Definition
Fossil Fuel
A non-renewable fuel formed from the buried remains of ancient organisms. Over millions of years, heat and geological pressure transform this organic matter into fuels such as coal, oil, and natural gas.
- They take millions of years to form in the deep underground from the decomposition of organisms such as plankton and algae.
- Over very long time periods, heat and geological pressure transform this organic matter into oil and gas.
- Because this process takes so long, using oil today depletes a stock that will not be replaced within human lifetimes.
Refining turns crude oil into multiple valuable products
- Crude oil is rarely used directly, instead, it's processed in a refinery to separate and transform it into different fractions (products): petrol (gasoline), diesel, and jet fuel, plus heating oils such as kerosene.
- A major reason the world became so reliant on oil is that refining produces fuels that are energy-dense, easy to transport, and suitable for engines.
- Many important by-products also come from refining, including materials used to make plastics and chemicals, and products such as lubricants, waxes, tars, pesticides, and fertilizers.
Analogy
- Think of crude oil like a mixed box of building blocks.
- Refining sorts and reshapes the pieces so they can be used for many different purposes, from transport fuels to plastics.
How Does Uneven Distribution Create Resource Security Issues?
Definition
Resource security
Resource security refers to the availability of natural resources in sufficient quantities to meet the needs of a population while ensuring long-term sustainability.
- Non-renewable resources are not spread evenly across Earth.
- This uneven distribution affects security and development in several ways:
- Countries with large reserves may gain export revenue and political influence.
- Countries with limited reserves may become dependent on imports, which can be risky when prices rise or supplies are disrupted.
Example
- The Middle East is especially important in global oil supply.
- There are about 90 million barrels of oil produced each day globally, and the top ten producers account for around 60% of crude oil production.
- The significance of this supply has influenced international relations and conflict, including major geopolitical events such as the Gulf War (1991).
OPEC can influence global oil prices
- The Organization of the Petroleum Exporting Countries (OPEC) is a group of oil-producing countries with major shares of global oil supply.
- It includes 14 member states, including several in the Middle East.
- When OPEC members adjust production targets, they can affect the global supply of oil, influencing the price at which crude oil is sold.
- This gives the organization economic and political power.
Common Mistake
- Don't confuse "who has oil reserves" with "who produces oil."
- Having oil in the ground doesn't mean you can sell it.
Example
- Venezuela has the largest proven oil reserves in the world (even more than Saudi Arabia).
- Yet its production has collapsed to 1940s levels.
- Extracting Venezuela's heavy crude requires expensive technology and constant maintenance.
- Because of political instability and mismanagement, they struggle to maintain the "pumps."
- The key idea here is reserves is simply about geology, while actual production must involve technology and politics.
How Does Extraction Drive Growth But Also Create Long-Term Risks?
- Benefits can include:
- Higher government revenue through taxes and royalties
- More foreign exchange (earning money from exports)
- Job creation (directly in extraction, and indirectly through services)
- Infrastructure investment (roads, ports, pipelines)
- These can support development goals if revenues are managed transparently and invested in health, education, and economic diversification.
- Costs can include:
- Environmental impacts: habitat damage, water pollution, oil spills, and greenhouse gas emissions from burning fossil fuels.
- Social impacts: local communities may face displacement, health risks, and unequal sharing of benefits.
- Economic vulnerability: if government budgets depend heavily on oil revenue, a price fall can quickly create debt and spending cuts.
- Political tension: competition over resources can raise domestic conflict or international rivalry.
Case study
- Oil-rich countries can experience "boom and bust" cycles.
- When prices are high, government income rises and spending expands.
- When prices drop, projects may stop, unemployment can rise, and social programmes can be cut.
But Why Are Oil Prices So Volatile?
- The two key reasons oil prices are so volatile are:
- Demand can shift quickly: economic growth, seasonal travel, and changes in industrial activity alter how much oil consumers want.
- Supply is difficult to adjust quickly: extraction and transport infrastructure take years to build, and disruptions (conflict, sanctions, accidents) can reduce supply suddenly.
- A basic supply and demand model helps explain volatility.
- So, if demand rises while supply is relatively fixed in the short term, the equilibrium price increases.
Exam technique
- When explaining price changes using supply and demand, always state:
- Which curve shifts (supply or demand)
- The direction of the shift (left or right)
- The resulting changes in equilibrium price and equilibrium quantity
- Even a simple, well-labeled diagram can earn strong marks if your written explanation is precise.
Note
- In many countries, demand for transport fuel is relatively inelastic in the short run, meaning people cannot easily reduce consumption quickly.
- This can make price increases sharper and politically sensitive.
Self review
- Why is oil considered non-renewable?
- Give two ways oil refining increases the value of crude oil.
- State one reason oil prices are volatile.
- Choose one alternative energy source and state one advantage and one disadvantage.
