Chapter Two

"Oil Supply and Demand."

Trading Today, 2005

http://www.tradingtoday.com/26-oil-supply-demand

This article is talking about how oil demand will continue to increase despite the high price of oil. There are more than one sources of demand for oil. As the countries grow, their economy grows so the oil consumption grows with their economy. India and China are some examples of growing economies. The oil demand has already began to increase with the economic growth in China and India. This article also says that the developed countries should change their oil habits, but will likely adapt at a faster pace if oil prices continue to rise. The oil companies are trying to find some oil replacement, but they definitively haven't found one yet. Biodiesel is probably been the most grass roots oil replacement so far. They are run on greases like the ones thrown out everyday by the fast food chains. But there is one issue with biodiesel it is the fact that it still releases emissions similar to gasoline, just lower levels. There are serious issues with biodiesel running at low temperatures, because it thickens easily and requires additives at temperatures below 40 degrees. Ethanol is probably the most well known gasoline alternative. In Brazil sugar is converted to ethanol and nearly half of the fuel sold is ethanol. In the US only about 3% of the fuel sold is ethanol, but the number has been growing.

Relationship Chapter 2 - Change in Demand, and Price

This article relates to chapter two because of the change in demand. They are basically saying that consumer demand for a product is not likely to stay constant over time. The factors that influence consumer demand are always changing. Individual tastes do not remain the same. The demand for oil is really high even though the prices are high. Lead by GM and Ford, most vehicles sold in the US today can run on the E85 mixture and those that are not compatible can be converted for less than $200. While today ethanol in the US is mostly profitable because of subsides, in the future ethanol grown from more fibrous plants instead of corn is predicted to have a better yield. Also pipelines like the oil industries it would become much cheaper.

Chapter One

"Worsening Global Water Quality and Scarcity Problems Drive Need for Improved water Infrastructure, Filtration, Treatment and Delivery."

Market Wire, June 2006.
http://www.findarticles.com/p/articles/mi_pwwi/is_200606/ai_n16500170

This article is talking about how the water quality and scarcity problems are concerns that are showing up. Economic and social demands, and political realities - are driving the overall expansion and consolidation of the broader water industry. These drivers, in turn, give rise to various trends and effects which will likely be key features in the water business for years to come. Water quality and scarcity problems are clearly the ultimate concern and driver behind the challenges, all of the regulations, the opportunities and ultimately, the projected growth for the water business over the coming decades. It also tells us that China and India's significant economic development, escalating the demand for water supply, quality, technology and infrastructure across residential, industrial and commercial segments. China is really a significant player in the water market last 2 years and is planning to spend $250 billion over the next 2 to 3 years on their water infrastructure. It says that India and China needs a large amount of water because it is a developing country. The main point of this article is that the Water Challenge needs a global solution, and Hendrx Corporation intends to be a part of that sloution.

Relationship to Chapter 1 - Scarcity, Land (water)

In economic terms, anything that has a limited supply is referred to as scarce. So this article talks about how the water is a scarcity problem in China and India. But, in reality, everything is scarce because very few things are available in unlimited qualities. The only things that are not scarce are air and sunshine, but water is a real scarce item. When I said land is a resource, you are probably thinking that water is not land. But land is just more than the ten million square kilometers that comprise Canada's land mass. We include such natural resources as mineral, wild animals, vegetation, and WATER. In chapter one it talks about everything that I have written above. India and China are in an immense need of water right now, because they are both developing countries. Their requirement is from the potable, to agriculture, industrial and wastewater treatment. The long term objective of the company that was mentioned above is to supply solutions in each of those areas. In short term, they are concentrating on the potable water, suitable for drinking having no harmful bacteria, more specifically in the Atmospheric Water Generation area.