Energy Crisis: Effects and Solutions

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INTRODUCTION Energy is the basic necessity for life. But for energy no form of life would have ever emerged. We all know energy for providing us light and comfort. It can help us to cool down during summers and feel warm during winters. It also helps us to go from one place to another. All automobiles need energy to run; but even otherwise all other means of transport need energy. But even though we use it every moment of our life and learn about it at school it often remains a riddle for many all through the life.

An energy crisis is any great bottleneck (or price rise) in the supply of energy resources to an economy. In popular literature though, it often refers to one of the energy sources used at a certain time and place, particularly those that supply national electricity grids or serve as fuel for vehicles. There has been an enormous increase in the global demand for energy in recent years as a result of industrial development and population growth. Supply of energy is, therefore, far less than the actual demand. CAUSES OF ENERGY CRISIS

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Market failure is possible when monopoly manipulation of markets occurs. A crisis can develop due to industrial actions like union organized strikes and government embargoes. The cause may be over-consumption, aging infrastructure, choke point disruption or bottlenecks at oil refineries and port facilities that restrict fuel supply. An emergency may emerge during unusually cold winters due to increased consumption of energy. Pipeline failures and other accidents may cause minor interruptions to energy supplies. A crisis could possibly emerge after infrastructure damage from severe weather.

Attacks by terrorists or militia on important infrastructure are a possible problem for energy consumers, with a successful strike on a Middle East facility potentially causing global shortages. Political events, for example, when governments change due to regime change, monarchy collapse, military occupation, and coup may disrupt oil and gas production and create shortages. Historical crises •1970s energy crisis – caused by the peaking of oil production in major industrial •nations (Germany, United States, Canada, etc. ) and embargoes from other producers 1973 oil crisis – caused by an OPEC oil export embargo by many of the major Arab oil-producing states, in response to Western support of Israel during the Yom Kippur War •1979 oil crisis – caused by the Iranian Revolution •1990 oil price shock – caused by the Gulf War •The 2000–2001 California electricity crisis – Caused by market manipulation by Enron •and failed deregulation; resulted in multiple large-scale power outages •Fuel protests in the United Kingdom in 2000 were caused by a rise in the price of crude oil combined with already relatively high taxation on road fuel in the UK. Zimbabwe has experienced a shortage of energy supplies for many years due to financial mismanagement. •Political riots occurring during the 2007 Burmese anti-government protests were sparked by rising energy prices. Emerging shortages Kuwait’s Al Burqan Oil Field, the world’s second largest oil field, will be depleted within 40 years. [1] Crises that exist as of 2008 include: •2000s energy crisis – Since 2003, a rise in prices caused by continued global increases in petroleum demand coupled with production stagnation, the falling value of the U. S. dollar, and a myriad of other secondary causes. 2008 Central Asia energy crisis, caused by abnormally cold temperatures and low water levels in an area dependent on hydroelectric power. At the same time the South African President was appeasing fears of a prolonged electricity crisis in South Africa. [2] •In February 2008 the President of Pakistan announced plans to tackle energy shortages that were reaching crisis stage, despite having significant hydrocarbon reserves,. [3] In April 2010 Pakistan government announced the Pakistan national energy policy, which extended the official weekend and banned neon lights in response to a growing electricity shortage. 4] •South African electrical crisis. The South African crisis, which may last to 2012, led to large price rises for platinum in February 2008[5] and reduced gold production. •China experienced severe energy shortages towards the end of 2005 and again in early 2008. During the latter crisis they suffered severe damage to power networks along with diesel and coal shortages. [6] Supplies of electricity in Guangdong province, the manufacturing hub of China, are predicted to fall short by an estimated 10 GW. •In 2011 China was forecast to have a second quarter electrical power deficit of 44. 5 – 49. 85 GW •It has been predicted that in the coming years after 2009 that the United Kingdom will suffer an energy crisis due to its commitments to reduce coal fired power stations, its politicians’ unwillingness to set up new nuclear power stations to replaces those that will be de-commissioned in a few years (even though they will not be running in time to stop a full blown crisis) and unreliable sources and sources that are running out of oil and gas. It is therefore predicted that the UK may have regular blackouts like South Africa. [9 •South Africa. [9] edit] Social and economic effects Main article: Energy economics The macroeconomic implications of a supply shock-induced energy crisis are large, because energy is the resource used to exploit all other resources. When energy markets fail, an energy shortage develops. Electricity consumers may experience intentionally engineered rolling blackouts during periods of insufficient supply or unexpected power outages, regardless of the cause. Industrialized nations are dependent on oil, and efforts to restrict the supply of oil would have an adverse effect on the economies of oil producers.

For the consumer, the price of natural gas, gasoline (petrol) and diesel for cars and other vehicles rises. An early response from stakeholders is the call for reports, investigations and commissions into the price of fuels. There are also movements towards the development of more sustainable urban infrastructure. In 2006, survey respondents in the United States were willing to pay more for a plug-in hybrid car In the market, new technology and energy efficiency measures become desirable for consumers seeking to decrease transport costs. 10] Examples include: •In 1980 Briggs & Stratton developed the first gasoline hybrid electric automobile; also are appearing plug-in hybrids. •the growth of advanced biofuels. •innovations like the Dahon, a folding bicycle •modernized and electrifying passenger transport •Railway electrification systems and new engines such as the Ganz-Mavag locomotive •variable compression ratio for vehicles Other responses include the development of unconventional oil sources such as synthetic fuel from places like the Athabasca Oil Sands, more renewable energy commercialization and use of alternative propulsion.

There may be a Relocation trend towards local foods and possibly microgeneration, solar thermal collectors and other green energy sources. Tourism trends and gas-guzzler ownership varies with fuel costs. Energy shortages can influence public opinion on subjects from nuclear power plants to electric blankets. Building construction techniques—improved insulation, reflective roofs, thermally efficient windows, etc. —change to reduce heating costs. [edit] Effects [edit] Other OPEC members OPEC net oil export revenues for 1971 – 2007. [7] The rise in oil price benefited other OPEC members, which made record profits. edit] United States Line at a gas station in Maryland, USA, June 15, 1979. The oil crisis had mixed effects in the United States, due to some parts of the country being oil-producing regions and other parts being oil-consuming regions. Richard Nixon had imposed price controls on domestic oil, which had helped cause shortages that led to gasoline lines during the 1973 Oil Crisis. Gasoline controls were repealed, but controls on domestic US oil remained. The Jimmy Carter administration began a phased deregulation of oil prices on April 5, 1979, when the average price of crude oil was US$15. 5 per barrel (42 US gallons (160 L)). Starting with the Iranian revolution, the price of crude oil rose to $39. 50 per barrel over the next 12 months (its all time highest real price until March 7, 2008. )[8] Deregulating domestic oil price controls allowed domestic U. S. oil output to rise sharply from the large Prudhoe Bay fields, while oil imports fell sharply. Due to memories of oil shortage in 1973, motorists soon began panic buying, and long lines appeared at gas stations, as they had six years earlier during the 1973 oil crisis. 9] As the average vehicle of the time consumed between two to three liters (about 0. 5-0. 8 gallons) of gasoline (petrol) an hour while idling, it was estimated that Americans wasted up to 150,000 barrels (24,000 m3) of oil per day idling their engines in the lines at gas stations. [10] Gas coupon printed but not issued during the 1979 energy crisis During the period, many people believed the oil companies artificially created oil shortages to drive up prices, rather than factors beyond human control or the US’ own price controls.

The amount of oil sold in the United States in 1979 was only 3. 5 percent less than the record set for oil sold the year previously. [11] Many politicians proposed gas rationing; one such proponent was Harry Hughes, Governor of Maryland, who proposed odd-even rationing (only people with an odd-numbered license plate could purchase gas on an odd-numbered day), as was used during the 1973 Oil Crisis. Several states actually implemented odd-even gas rationing, including Pennsylvania, New York, New Jersey, and Texas.

Coupons for gasoline rationing were printed but were never actually used during the 1979 crisis. [12] On July 15, 1979, President Jimmy Carter outlined his plans to reduce oil imports and improve energy efficiency in his “Crisis of Confidence” speech (sometimes known as the “malaise” speech). [13] It is often said that during the speech, Carter wore a cardigan (he actually wore a blue suit) [14] and encouraged citizens to do what they could to reduce their use of energy.

He had already installed solar power panels on the roof of the White House and a wood-burning stove in the living quarters. However, the panels were removed in 1986, reportedly for roof maintenance, during the administration of his successor, Ronald Reagan. [15] Carter’s speech argued the oil crisis was “the moral equivalent of war”. Several months later, in January 1980, Carter issued the Carter Doctrine, which declared that any interference with U. S. oil interests in the Persian Gulf would be considered an attack on the vital interests of the United States. 16] Additionally, as part of his administration’s efforts at deregulation, Carter proposed removing price controls that had been imposed in the administration of Richard Nixon before the 1973 crisis. Carter agreed to remove price controls in phases; they were finally dismantled in 1981 under Reagan. [17] Carter also said he would impose a windfall profit tax on oil companies. [18] While the regulated price of domestic oil was kept to $6 a barrel, the world market price was $30. [18] In 1980, the U. S.

Government established the Synthetic Fuels Corporation to produce an alternative to imported fossil fuels SOLUTIONS TO ENERGY CRISIS Feb3-07, 08:47 AM Last edited by heusdens; Feb3-07 at 08:53 AM.. #1 heusdens Posts: 1,620Solutions to the energy crisis / global warming problem ________________________________________ We face an energy crisis, since gas and oil resources are diminishing this century. Oil and gas production follow a bell-curve, and around the middle of the depletion of a gas or oil field, the production of that field decreases yearly.

Apart from coal (for producing electricity) and nuclear energy, there aren’t reasonable alternatives which can be utilized at this large scale and at the same costs. But both coal and nuclear power have their drawbacks. [ Although energy from coal might be produced in a clean(er) way, in which the carbon-dioxide is not emitted in the atmosphere but stored under ground. ] We have to take into account that the use of energy per capita is still significantly growing (for example: China, India), and also the population still grows enormously (doubles every 25 years).

So what to do? There are of course alternatives. Utilizing sun energy, wind, tidal, geothermic and bio energy, which in principle are renewable. The only problem is: in general they aren’t available in the scale and concentration in which it is needed and/or are much more expensive. However, the costs for (for instance) producing electricity is rising and might even rise more when we near peakoil scenario, and at the same time techniques for producing large scale wind or sun energy, are decreasing.

When wind and/or sun energy are produced at much larger scales, it becomes economically feasable, even when the energy has to be transported far away (as electricity or hydrogen). For example, large parts of earth which are now uninhabited (the deserts) could become economic production centers for producing solar energy. At a sufficient large scale, solar energy can become as cheap as other forms of energy. The extra costs for distribution for a long range (energy losses) also included. Also, energy could be distributed as hydrogen, for other uses.

Secondly, these deserts when sea water is desalinated could also become productive agricultural regions (in a long time, before the soil is improved, starting with plants that use little water and help other vegetation to survive), and hence, these kind of production facilities, on a sufficient large scale, could signicantly reduce green house gas emissions. Of course, this could be only feasable in the long run, when price leves of conventional energy resources are significantly higher, and prices of large scale solar energy production systems are significantly lower.

But in some decades, this will most probably the case. And maybe even earlier, if we decide to boost this development (on an international/global level) with some inititial large scale investments. What would be needed for that is creating some fund (in the form of some extra energy tax or CO2 emission tax, paid by the rich and energy consuming countries). Extra benefits are: this will also help increase development of developing countries, for example, (sub) sahara countries, it would create many jobs and stabilize immigration levels to europe, etc.

And most importantly: it will provide drinking water for millions of people in that region, who now face the problems of water shortages, which to them is a bigger problem then energy shortages. Other regions which could be developed in this manner: large part of the middle east and arabian peninsula, large part of west china and surrounding regions, australian inlands, south east of united states, etc. and other dry regions with a lot of sunshine. Solutions to the energy crisis / global warming problemShare It Thread Tools Search this Thread

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