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Why Do Energy-Related Commodities Matter?


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Why Do Energy-Related Commodities Matter?


Energy has a greater influence on our daily lives than any other category of goods. Energy prices have an impact on the price of almost everything we buy, including groceries, clothing, electronics, and gasoline for our vehicles. They calculate how much it costs to heat and cool our residences, workplaces, factories, hospitals, and educational institutions. In actuality, a world without of energy would be one devoid of the necessities for our survival!


The British thermal unit (Btu), a measurement of the heat content of fuels, is the unit we usually use to define quantities of energy. The yearly global energy consumption is predicted to surpass 575 quadrillion Btu and rise to 736 quadrillion Btu by 2040, a 28% increase, according to the US Energy Information Agency (EIA).

We may compare these staggering figures to the usage of fossil fuels in the largest economy in the world to get a sense of scale. Every year, the US uses 729.5 million short tons of coal (14.2 quadrillion Btu), 27.5 trillion cubic feet of natural gas (28.4 quadrillion Btu), and 7.2 billion barrels of petroleum (35.9 quadrillion Btu).

However, the US's use of these fossil fuels accounts for just 13.6% of the world's energy. usage. Put another, the planet uses an absurdly high quantity of energy.

Which Kinds of Energy Are There?

There are two categories for the energy we use:
  • Renewable energy is energy that is readily regenerated.
  • Non-renewable energy is that which is not regenerated.

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