Recent stats show that prices of natural resources such as thermal coal, iron ore, natural gas, oil, and metals have gone higher over the past 15 years
Recent stats show that prices of natural resources such as thermal coal, iron ore, natural gas, oil, and metals have gone higher over the past 15 years. Additionally, mining companies together with their exporting countries have advanced related technology. The advancement in technology includes automation technologies like robotics, data analytics and internet of things technology.
The use of CORS on industry projects has helped greatly in efficient planning to ensure plant operational readiness.
Reduced energy demand from the transport industry and gradual replacement of fossil fuels has enabled cost reduction in renewables. Advanced economies have experienced faster decline in oil demand due to rapid adoption of technology. Here are some of the ways technology is influencing the paradigm of supply and demand for natural resources.
Reduced Usage of Energy
The technological revolution has reduced consumption of energy. How? Nowadays, people are using power more efficiently because of energy saving devices in their homes and offices. Factories have also optimized the use of analytics and automation. Introduction of more efficient engines, electric vehicles, and ridesharing has reduced oil usage because transport is the most significant consumer of oil. Autonomous cars are more fuel efficient.
Besides, ride sharing has reduced the number of vehicles on the road. The diminished sale of cars and lowered demand for iron ore are indicators that oil demand may be reduced in the future. As the demand for cars has been reduced, the need for construction of new roads will be reduced.
There is increased global energy productivity due to changes in the transportation sector and increased yield efficiency in industrial and residential power usage.
Reduction in Cost of Renewable Energy
The cost of renewable energies such as solar energy and wind energy together with the expenses of storing their energy has been reduced drastically due to the technology revolution. Renewables have a more significant role in the global energy mix.
The shift to renewable energy has helped meet the growing demand for electricity. Renewable energies have been substituted for fossil fuels and also have reduced the overall market for energy since they do not experience loss of energy to heat like fossil fuel power generators do.
Technological advancement has enabled resource producers to increase productivity. Automated haul trucks and drilling machines have improved safety, lowered energy consumption and have also increased operational precision.
Technologies such as automation, data collection, computing, and analysis have improved mining of resources and also enhanced yields across different resources. Operational efficiency has developed through enabling predictive yield and energy efficiency.
Resource Producers Become Weakened
Commodities such as oil, natural gas, thermal coal, iron ore and copper have not had steady prices over the past few years. This is because of the slowing of demand and increased supply. The mining sector of these resources has incurred massive losses due to the unsteady state of their commodities.
The amount of these resources is also reducing globally, and this has led to a global shift to alternative sources of energy such as solar energy and wind energy, which are renewable.