When the golden eggs run out…

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The golden egg i’m referring to here is oil, companies in the oil market will go out of business in about 50 years from now simply because planet earth will run out of oil sources. How will these companies survive the post oil age?

Most of the oil companies, if not all, focus on growth and ignore the durability part of their products. Including new products to the portfolio is the key of survival, alternative products such as wind turbines and solar boards will be the rescue boat to the post oil age. Nevertheless, research on energy alternatives will help in diversifying the product mix on the long run, and will bring the shift towards energy companies rather than oil companies forward.

Some might say oil will not run out today! and therefore, oil companies have plenty of time to reassess their strategies. I believe that  people who hold this view don't take the risk of alternative energy in mind. Oil can be less valuable sooner than what we think.

In summary, unless oil companies include the product durability aspect in there long term strategy the future of these companies will be as dark as oil.