Energy Companies: Findings and Results

The research had sought to find incidental data on the entry of energy production firms in both India and china. However to effectively analyze the aspect fully, it was paramount to review the energy supply position of the two countries and the deficit thereof. Clearly, there was a large disparity between the energy needs and the energy supply in both countries (McLaughlin, C., p 11).

According to Victor and Yueh (Victor, D. G., Yueh, L., p 72) the energy supply deficit was a big challenge in both countries but even more intense for China which was industrializing relative fast. The journal figures show a large disparity in the demand and the supply of the product. The table below shows a model disparity for the two countries.

These disparities are bound to bring about competitions and the upsurge of international energy production firms that would want to supply this vital commodity with the least regard for the safety of the production and supply prospects (Sagers, M. J., Pannell, C. W., p 401). The question and the concern inherently is how clean the supply of the energy would be in the long run. Given the present concern for global warming, the available literature indicated that the first priority concern for the states was clearly the cleanliness of the production process and not the efficacy of covering the gap.

Through the journals reviewed, a paltry 3 out of the thirty gave priority to aspect of breaching the supply gap while the remaining 27 journals gave much preeminence to the cleanliness of the production process. Journals found the utilization of solar energy the best for the tiger and large economies asserting that the sources of energy had the lowest production costs and environmental pollution and costs. Although the journals (Garber, K., p 18) appreciated that the gap between the demand and the supply of energy would not be gapped through solar energy, the example in china where Energy inc. was producing 3GW energy that was able to supply 3billion households with the requisite energy shows that the solar energy potential is far from being fully explored.

In India most of the national journals wrote on the need for restriction on the entry of international energy production firms based on the cleanliness of their energy production process. In China however, (Sagers, M. J., Pannell, C. W., p 397) the energy sector stakeholders were more inclined towards the bridging of the demand gap than the cleanliness of the process. However, the need for a clean energy process was still among the Chinese energy production policy guidelines.

The data shows that the need for sufficient energy supply is quite high however the players in the industry feel that the process should not jeopardize the future for the nationals hence the need for regulatory process in the energy production sector.

It also emerged from the data that the number of supplier of energy products was limited by the presence of scale economies (Wilbanks, T. J., p 383). Ideally, the production of energy would not be profitable if the production firms were small in their production scales. Hitherto, and before 2009 the industry was growing relatively fast, the difficulties experienced in the year saw the decline in the industry prospects according to Sullivan and Considine journal, Hastening slowly in the global renewable race.

The use of the petroleum products was the largest source of energy in both countries according to most of the journals. However, the journals sought the transfer of enterprises from the use of this energy sources to those that would contribute to a safer environment. The data accessed (McLaughlin, C., p 11) showed that a large population of the Indians and the Chinese were utilizing petroleum energy despite their wish to transfer the energy source used (Garber, K., p 17).

The data represented in figure 5 and figure 6 shows that the consumption of petroleum products with a lot of carbon emissions in both China and India is still relatively high. It is for this reason according to Fairley (Fairley, P., p 41) that the need for a regulatory framework particularly governing the entry of more players into the energy industry that will still produce energy that still contributes to the depletion of the ozone should be restricted.

Appreciably both countries have not restriction on the entry of players in the energy sector who utilizes wind and solar in the production of energy. Hence this research thesis ardently addresses answers the research question which sought to find the existence of any restrictions on the entry of energy production players in the two countries.

References

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