How is Technology a Boon in the Supply and Demand of Natural Resources?
In recent years, technology has transformed our lives drastically. While technology can be considered as a sword with two edges; for now, let us focus on the mounting benefits that it has offered to the human race. For many years we have been depleting the natural resources for our uses. However, technological advancements have made […]
In recent years, technology has transformed our lives drastically. While technology can be considered as a sword with two edges; for now, let us focus on the mounting benefits that it has offered to the human race. For many years we have been depleting the natural resources for our uses. However, technological advancements have made it possible to reduce exploiting natural resources and switch over to other alternatives. Technological innovation such as robotics, artificial intelligence, Internet of Things and data analytics are hugely transforming the supply and demand of natural resources.
Shift to Energy Efficient Technology
Over the years, consumption of energy has become less intense and more efficient as people have started resorting to energy efficient technologies in homes, businesses, and transportation. In addition to this, technological innovation has helped bring down the cost of using natural resources for generating renewable energy; thereby influencing their demand-supply ratio. With the advent of technology, it has become much easier for resource producers to deploy a range of techniques into their operations, making the operations more efficient by shifting to predictive maintenance and using data analysis to discover, extract, and manage resources.
Technology in Enhancing Productivity
Machines can perform the same operations as humans in a much lesser estimated time and are more accurate. This is one of the main reasons why in many industries, such as mining, some of the crucial operations have been replaced by machines and technology. Technology has made industries much safer as well by reducing the risks involved in dangerous processes by replacing humans with machines in such activities. When the productivity of industries dealing with natural resources is increased, it will result in better supply and demand balance in the market.
Make the Right Decisions
Various advanced technologies such as data analytics, IoT, and predictive analytics can be employed by companies dealing with natural resources to determine the optimum level of extracting and using the resources with minimum costs and wastage. The demand and supply of natural resources can also be adjusted based on the data analyzed, giving the companies more room to plan and execute the operations and arrive at an equilibrium between the demand and supply of resources. Better analysis of data using technologically advanced techniques also helps companies to reduce the maintenance and repair costs in the long run.