Non-Renewable Resources

Heavy dependence on non-renewable resources such as oil, natural gas, and coal may create economic challenges.

First, the production costs of non-renewable resources may rise over time.

Consider oil. Early oil fields were easy to access.

But as these fields were used up, extracting the same amount of oil from the remaining deposits could become more costly. However, technological advances, such as improved drilling techniques and hydraulic fracturing, have helped keep oil extraction costs from rising as much as they otherwise would have.

Next, political events can disrupt supplies, leaving countries that depend heavily on non-renewable resources vulnerable.

For example, during the 1973 oil crisis, several countries, such as the United States, were affected by fuel shortages and rapidly rising oil prices.

Finally, when an economy uses too many non-renewable resources today, such as for transportation, electricity, and industrial production, it reduces what will be available in the future.

So, heavy dependence on non-renewable resources may lead to economic challenges.