Natural resources are resources that exist without any actions of humankind. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest and cultural value. On Earth, it includes sunlight, atmosphere, water, land, all minerals along with all vegetation, and animal life. Natural resources can be part of our natural heritage or protected in nature reserves.
Particular areas (such as the rainforest in Fatu-Hiva) often feature biodiversity and geodiversity in their ecosystems. Natural resources may be classified in different ways. Natural resources are materials and components (something that can be used) that can be found within the environment. Every man-made product is composed of natural resources (at its fundamental level). A natural resource may exist as a separate entity such as fresh water, air, as well as any living organism such as a fish, or it may exist in an alternate form that must be processed to obtain the resource such as metal ores, rare-earth elements, petroleum, and most forms of energy.
There is much debate worldwide over natural-resource allocations. This is particularly true during periods of increasing scarcity and shortages (depletion and overconsumption of resources).
Classification
There are various methods of categorizing natural resources. These include the source of origin, stage of development, and by their renewability.
On the basis of origin, natural resources may be divided into two types:
- Biotic — Biotic resources are obtained from the biosphere (living and organic material), such as forests and animals, and the materials that can be obtained from them. Fossil fuels such as coal and petroleum are also included in this category because they are formed from decayed organic matter.
- Abiotic – Abiotic resources are those that come from non-living, non-organic material. Examples of abiotic resources include land, fresh water, air, rare-earth elements, and heavy metals including ores, such as gold, iron, copper, silver, etc.
Considering their stage of development, natural resources may be referred to in the following ways:
- Potential resources — Potential resources are those that may be used in the future—for example, petroleum in sedimentary rocks that, until drilled out and put to use remains a potential resource
- Actual resources — Those resources that have been surveyed, quantified and qualified, and are currently used in development, such as wood processing, and are typically dependent on technology
- Reserve resources — The part of an actual resource that can be developed profitably in the future
- Stock resources — Those that have been surveyed, but cannot be used due to lack of technology—for example, hydrogen
On the basis of recovery rate, natural resources can be categorized as follows:
- Renewable resources — Renewable resources can be replenished naturally. Some of these resources, like sunlight, air, wind, water, etc. are continuously available and their quantities are not noticeably affected by human consumption. Though many renewable resources do not have such a rapid recovery rate, these resources are susceptible to depletion by over-use. Resources from a human use perspective are classified as renewable so long as the rate of replenishment/recovery exceeds that of the rate of consumption. They replenish easily compared to non-renewable resources.
- Non-renewable resources – Non-renewable resources either form slowly or do not naturally form in the environment. Minerals are the most common resource included in this category. From the human perspective, resources are non-renewable when their rate of consumption exceeds the rate of replenishment/recovery; a good example of this are fossil fuels, which are in this category because their rate of formation is extremely slow (potentially millions of years), meaning they are considered non-renewable. Some resources naturally deplete in amount without human interference, the most notable of these being radio-active elements such as uranium, which naturally decay into heavy metals. Of these, the metallic minerals can be re-used by recycling them, but coal and petroleum cannot be recycled. Once they are completely used they take millions of years to replenish.
Extraction
Resource extraction involves any activity that withdraws resources from nature. This can range in scale from the traditional use of preindustrial societies to global industry. Extractive industries are, along with agriculture, the basis of the primary sector of the economy. Extraction produces raw material, which is then processed to add value. Examples of extractive industries are hunting, trapping, mining, oil and gas drilling, and forestry. Natural resources can add substantial amounts to a country’s wealth; however, a sudden inflow of money caused by a resource boom can create social problems including inflation harming other industries (“Dutch disease”) and corruption, leading to inequality and underdevelopment, this is known as the “resource curse”.
Extractive industries represent a large growing activity in many less-developed countries but the wealth generated does not always lead to sustainable and inclusive growth. People often accuse extractive industry businesses as acting only to maximize short-term value, implying that less-developed countries are vulnerable to powerful corporations. Alternatively, host governments are often assumed to be only maximizing immediate revenue. Researchers argue there are areas of common interest where development goals and business cross. These present opportunities for international governmental agencies to engage with the private sector and host governments through revenue management and expenditure accountability, infrastructure development, employment creation, skills and enterprise development, and impacts on children, especially girls and women. A strong civil society can play an important role in ensuring the effective management of natural resources. Norway can serve as a role model in this regard as it has good institutions and open and dynamic public debate with strong civil society actors that provide an effective checks and balances system for the government’s management of extractive industries, such as the Extractive Industries Transparency Initiative (EITI), a global standard for the good governance of oil, gas and mineral resources. It seeks to address the key governance issues in the extractive sectors.