Oil Companies - Best / Worst of Times

This is a letter I wrote to the Editor of The Indian Express after reading Mr. Vikram Mehta [Chairman, Shell Group of Companies, India] in which he claims that private oil companies all across the world are at cross-roads of the best and the worst of times. The article can be found here: http://www.indianexpress.com/story/305822.html

Dear Sir,

This is in reference to the OP-ED article Two stories of oil by Mr. Vikram Mehta.

The author is trying to build a case for oil companies by saying that they [oil companies] are facing hardships in the current market scenario. This could not be any farther from the truth. Consider the following points:

1. Although oil prices are increasing [due to lowered availability and increased demand] there is increasing research in the fields of fossil fuel recovery. Fossil fuels these days are being recovered from sources which were "economically unviable" till a few years ago. This is because of the increased demand of petroleum products.

2. There is lack of sufficient funding in the renewable energy sector and hence a major ground-breaking, fossil fuel industry shaking invention is nowhere on the horizon. That the world has slowly begun to take notice of the ill-effects of fossil fuel utilization is thanks to the relentless efforts of environmentalists all over the world. Yet, given the proliferation of the fossil fuels, acceptance of renewable energy is still low and is likely to remain that way in the near future.

3. Oil companies express concerns over global warming and depleting natural resources cause them sleepless nights and furrowed brows. Yet, barring a few exceptions, how often do we see oil companies sponsoring research in the renewable sector? It might be worthwhile for all oil companies to start a future fund for renewable sources of energy. That way, they will ensure a "sustainable" business for themselves and also cleaner environment for future generations.

I find it hard to agree with the author's assertion that oil companies are facing the hardest of times. They are in the best of times and stand to face better times if they decide to invest in the future.

Regards,

Govindraj Umarji