Is water going to become a commodity?

Is water going to become a commodity?

Water has joined gold, oil and other commodities that are traded on Wall Street, as worries about the uncertainty of its availability in the future rises.

Is water more valuable than oil?

Oil is now cheaper than bottled water, Bloomberg TV reporter David Ingles noted last week. In fact, with West Texas Intermediate trading under $30 per barrel, it is over 60 times cheaper than a bottle of Perrier sparkling water, which costs $1,850 by his calculations.

Why is water an important commodity?

Water is arguably the most important commodity on Earth. As important as crops, metals and energy are to the planet, none of them matter without water. Every agricultural crop that feeds the planet needs it to grow. Farmers couldn’t raise chickens, cows, pigs, or any livestock without massive quantities of it.

Is water a resource or commodity?

Water is a commodity only up to a certain point. Once water exceeds a reservoir’s capacity, it is not a commodity because it will flow free over the dam.

Is water a commodity can it be traded in the derivative markets as a future contract?

Strategically, water as a tradable commodity will fall under the loop of the concentrated wealth of the richest 1\% of India, pushing another million Indians into severe water scarcity. Water futures could yield some favorable results for India – if implemented properly and regulated appropriately.

Is water becoming the new oil?

We’ve all heard or read that “water is the new oil,” a phrase that is often deployed as a pundit’s shorthand for some market prediction. Drinking water, we are told by analysts and environmentalists, is a rare, finite resource of which the world’s supply is rapidly dwindling. It’s just like oil. Well, it’s not.

Is water a commodity or a resource?

Is water an economic commodity?

The 1992 Dublin Principles declared water an “economic good” for the first time and stated that trading water as a commodity is the most efficient means of managing scarce water resources.

Why is oil more valuable than water?

Oil is a basic commodity for which there are many substitutes. That makes water more valuable, but this value is not reflected in its price. Communities and countries must appreciate that water is the foundation of their economies and invest much more in water systems.

Should water be so expensive?

Communities and countries must appreciate that water is the foundation of their economies and invest much more in water systems. But water doesn’t need to be so expensive that ordinary people can’t afford what they need.

Is water scarcity now one of the most pressing challenges facing industries?

Yet Jean-Louis Chaussade, the chief executive of the French utility company Suez, whose activities straddle the energy and water sectors, argues that water scarcity is now one of the most pressing challenges facing many industries. He told the Financial Times last year that he foresees a day when water will be a more precious commodity than oil.