Water Economy. The future oil?

Water Economy. The future oil?

Water and civilization

The rise and fall of the civilization in entire history highly depend on water availability. Today also, 90% population of the world lives within 10 kilometers of water resources.
Many civilizations have been destroyed because of the shortage of water. Mesopotamian civilization destroyed because of changes in pattern of the Euphrates river. Mayan Empire (200-900AD) was also destroyed because drought took place for several years. This shows the role of the water in rise and fall of the Empire.

Why water is so important?

You might be wondering that Earth is 3/4th cover with water. Yes, but 97% of the water is in the form of salt water. 2% is in icecaps and only 1% of water is useful water which is in the form of the river, lake and groundwater.

Today, there are 34 countries in the world without a single river. Middle eastern countries like Saudi Arabia and Qatar are also in this list. Saudi Arabia is one of the biggest importers of water. It not only import s water for drinking purpose, but 90% of the water are used for agriculture that they are building in desert with the import of foreign water. But it turns out very expensive to build farms in desert. That’s why Saudi Arabia company, Alamarai, brought around 14000 of aces of US farms in 2016 for agriculture imports.

It’s not just Saudi Arabia, but water crisis causing problems in worldwide. Cape Town, the largest South African city runs out of water in 2017 causes increase in poverty and inflation. In the Indian city of Chennai, because of water shortage, people had to pay around 12000 per month for water in Jan 2019.

The future oil

All this has made water very expensive. A lot of billionaires are investing in water companies. Once water supply of the country runs low, they will rely upon water rich country. We might be seeing water companies earning in billion dollars

Goldman sachs called water the petroleum of next generation.

Europe, North America, middle East, Mexico, Japan already fore water crisis. But in future countries like China, India, USA can also come to that list. It will benefit water rich countries like Canada, Russia and Brazil.

Although, there has been innovation to solve this problem, like desalination plants have been built in Saudi Arabia and Israel to convert salty ocean water to freshwater .but this desalination process is very expensive and are costing billions of dollars .seeing this modern trend, its more likely, that we will see water company earning billions by trading water from water rich countries like Canada, Brazil, Russia to water poor countries like Saudi Arabia, Qatar in coming years

So, not let go this opportunity, research and invest in water. It is going to be oil of future.

Pranav Pranshu

Hello readers!! I am pranav pranshu currently pursuing my bachelor with major in electronic and communication Engineering. I have very much interest in history, politics and economics. so, I am here to share my view on certain topics.

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