Determinants Of Mineral Supply And Depletion Issues - Case Of Fossil Fuels

Mineral resources comprise of metallic, non-metallic, and fossil fuels. Our civilization, and the associated economic and industrial developments are inherently dependent on the availability and use of minerals. This is evident from historical development and identification of civilization eras throughout human history: the stone age, the iron age, the bronze age, and the current computer age. This paper deals with the depletable fossil fuel sector of minerals; this is represented by crude oil, natural gas, and coal. Fossil fuels provide approximately 80% of total global primary energy supply; the rest being provided by renewables (wind, hydrothermal, solar), nuclear, and biomass. Economic, industrial, and population growth will, inevitably, lead to an increase in demand for energy. In general, per capita energy consumption is correlated with per capita income, with the US showing the highest energy use per capita, and South Asia having the lowest. This paper examines the underlying interrelated issues (factors) of energy reserves, production, scarcity, depletion, economic, and technological factors and impact on long term availability and thus sustainability. Is it possible to extend the time to economic depletion of these resources? This will have an impact, direct or otherwise on total energy availability, and the inter-temporal allocation of the resource. Specific economic and physical parameters relevant to mineral supply and their respective impact on depletion, and inter-temporal welfare are investigated. These variables include own price, substitute price, population, income, technical innovation-both on supply as well demand, and resource substitution.