The energy industry has becoming increasingly important in recent decades. Energy is a fundamental aspect in all of our lives, and drives the prosperity of the modern economy. Recent studies have shown that the world’s energy demand will only continue to rise in the future with projections showing that future consumption will rise substantially. Industrialized (OECD) countries have previously fueled this demand increase, however, future projections show the developing world’s (non-OECD) thirst for energy will out grow the developed by 2010. This is due in large part to the expansion of globalization. This increased demand for energy, led by India and China, will lead to an increased usage of both renewable energies as well as non-renewable fossil fuels.

The United State’s energy consumption is also projected to grow at a modest rate in the future and along with it a continuing  dependence on fossil fuels. Much of the world’s oil and natural gas production come from outside the United States. Experts project for smaller amounts of Middle Eastern oil and natural gas being exported to the U.S. in comparison to other burgeoning economies. There is a finite amount of proven reserves of oil and natural gas on earth. The scarcity of known fossil fuel reserves can best be explained by Hubbert Curve Theory. Geologist, M. King Hubbert is famously known for creating the Hubbert curve and peak, which attempts to analyze the future world oil production. It shows that many countries have already reached their peak production levels as well as the current peak of proven reserves.

There are a variety of adverse effects due to the type of fuels consumed and the rate of current and future consumption. Some experts contend that increased energy use associated with fossil fuels is a leading contributor to greenhouse gas emissions and the current global warming crisis. On the other hand, scientist point to other causes of global warming such as the solar variation theory, among others. Some scientist question the warming trend in general. Global warming has sparked a variety of opinions among the scientific community without a consensus, and the controversy rages on. The depletion of fossil fuel resources along with the contentious areas in which they reside creates both price effects as well as security concerns. Natural gas and crude oil prices have been historically volatile and under upward pressure for the last decade. The Energy Information Administration describes a variety of security concerns ranging from a depreciating infrastructure, to political tensions, to disruptions and possible vulnerabilities. There are still many challenges that face the future energy environment.

The U.S. and other nations around the world are taking steps to decrease reliance on fossil fuels and develop sustainable energy solutions. This often comes in the form of renewable energy such as wind power, solar power, hydro power, biofuels, among others. Some experts, such as Nobel laureate Richard Smalley, contends that the U.S. is not doing enough funding for alternative energy research. The U.S. is attempting to make steps on the renewable energy front through providing grants to research universities along with the work of the National Renewable Energy Laboratory and other government organizations. Through a cooperative effort from the governmental, educational and private sectors alternative energy solutions will make an increasingly large impact on the dilemma faced by the current energy environment.