International approach to energy crisis management

Energy Crisis Management 1

International Approach to Energy Crisis Management




An energy crisis can be described as any great log jam in the provision and deliverance of

energy resources to a country or an economy. In other words, it is a monetary setback that is the

result of a deteriorating and diminishing energy supply at an escalating cost.

There are two forms of energy present in the world; commercial and traditional.

Commercial energy consists of oil, natural gas and coal. It also includes electricity that is

generated by burning any of the three mentioned energy forms or electricity obtained by

hydroelectric power stations, nuclear power stations or geothermal power stations. Wood, animal

dung, human wastes, charcoal etc fall under the category of traditional energy (Goodman,

Ghosh, 1984).

In most countries, energy supply is discriminated by the dominance of traditional energy

sources i.e. man and animal power, crop residues and firewood. On the other hand, these

countries also need commercial sources of energy like oil, gas, electricity and petrol to run their

urban centers and also to develop their infrastructures (Baron, Ghosh, 1984).

Wars or pecuniary catastrophes have always been regarded as grave global economic

menaces. By 1980s, the world had not realized that there could be a possibility of energy

deficiency. Though, warned by some energy-students of the probable energy shortage in the

approaching years; the economists didn‟t pay heed because of the generous supplies of energy at

stumpy prices (Simmons, 2006).

For the past 6 decades, it was a worldwide assumption that there were abundant and low-

priced oil and gas supplies enough to be utilized for a very long period of time. This postulation

was based on the theory that Middle East has rich oil reserves that could last for a century.


However, with the passage of time, the world witnessed the high demand of oil and gas and less

availability of energy resources. The availability of cheap and copious Middle East oil is just a

dream now (Simmons, 2006). It is now globally accepted that the era of cheap coal and oil has

come to an end (Ghosh, 1984). Another undeniable fact in today‟s world is that the available

supply of oil and gas has been succeeded by the global energy demand. This has consequently

led to energy “famine”. The consumers have started stockpiling energy which has resulted in a

heaving demand for energy resources (Simmons, 2006).

Demand winning over supply is not the only energy predicament of the world. The other

problems concerned with it are security and protection of infrastructures related to energy

resources. The frequent terrorist attacks have made governments spend large sums of money for

the safeguard of their energy resources and reserves. One of the other energy risks is the quiet

corrosion of global energy infrastructures. Pipelines, off-shore drilling rigs and tankers used in

the extraction of oil and gas globally are becoming „elderly‟. It is all because of the negligence in

the Golden Age of Oil and Gas low-cost availability. The gap in demand and supply of energy

needs to be taken care of by simply reducing the demand but it is such a difficult process that can

result in the collapse and crumpling of today‟s global economy. However, if this energy crisis is

not handled properly, the world‟s economy will experience the ugliest energy crisis till date

(Simmons, 2006).

By 2015, according to a study, half of the world‟s oil will finish. This alarming situation

has compelled the governments and the global industrial sector to cover up impending energy

exhaustion. Most of the nations have also started to suspend unconventional and substitute

energy techniques. It is a global catastrophe that every one of us is playing his part in burning

energy too promptly. (Scott, 2006).


The problem of energy supplies deficiency is a global problem. More or less, every

country in the world is facing a serious energy crisis threat. America, China, Japan, Russia, Iran

and Pakistan are some of the major countries that are highly intimidated with the energy crisis.

The basic factor is that their energy demand has outpaced the energy supply. However, in order

to compete with this energy crisis challenge, each of the mentioned countries has taken

appropriate steps to curb the situation. Their approaches to energy crisis management are aimed

at the resolution of threatening energy dilemma.

China's economy and industrial revolution desperately need natural resources for their

advancement, progression and development. It is, at present, one of the top three oil consumer

and oil importer in the world. With the passing years, its demand for oil has grown considerably

owing to the fact that its industrial sector has revolutionized incredibly. Sustainable development

is the first priority of China‟s policy. It has also aimed to modernize its energy policies by

improving and rejuvenating its power generation scheme and delivery system. This energy

policy is also meant to promote the development and expansion of alternative means of power.

The government of China has considered the enhancement of nuclear power generation. It has

also taken measures to develop wind power potential. Steps are also taken to take full advantage

of hydroelectric potential. Lastly, utilization of renewable energy resources has been encouraged

(Gee, Zhu & Li, 2007).

The Russian Federation has devised an Energy Strategy for improving its energy

efficiency. Its aim is to minimize energy concentration and energy outflows. It also encourages

the concept of sustainable development in Russian society. The Energy Strategy of Russia

includes reorganization and reformation of coal industry, enhancement of the configuration of


fuel and energy balance, production costs reduction in energy sector, insolvency of the

unsuccessful power plants, and introduction of domestic prices for energy resources. These

measures will facilitate the improvement of the Russian economy and also develop its labor

forces. Not only this, it will also trim down the brunt of pollution on environment (Mastepanov,

Energy Strategy of the Russian Federation to the Year 2020, ec.europa.eu).

The United States of America is also participating in the global contest for energy.

However, the American nation is not in a position to develop and increase new energy sources.

America is now relying on the prolific utilization of safe and sound means of power generation

(Farrell Jr., 2007). The American government is on its way to manage the energy crisis

efficiently and successfully. The United States of America has geared up to explore oil

domestically rather than importing it from other oil-rich countries. The development of

renewable energy resources like wind, water and solar energy has been encouraged in the recent

years (Gartenstein-Ross, 2008).

Pakistan is one of those unfortunate third world countries where energy crisis is on its

peak and are getting worse constantly. In order to maintain and stabilize the country‟s economy,

measures are to be taken to increase energy supplies. Unfortunately, no concrete steps have been

taken regarding the solution of energy crisis. Every new government has taken the crisis lightly

and dealt with the problem with unenthusiastic and fruitful efforts (Dr. Noor ul Haq, Energy

Crisis in Pakistan, ipripak.org). Iran and Japan are also facing the energy crisis which has altered

the growth of their economy. Both these countries are striving really hard to cope with the

mentioned threatening crisis.


Analysis Evaluation

After getting to know the pros and cons of the mentioned global energy crisis, it can be

understood that the world is facing a real danger. One of the basic reasons of this catastrophe is

that the human beings are too busy and involved in the rapid energy burning. After seeing and

analyzing the present situation, it is not wrong to say that we are already too late to use

renewable or alternative energy resources (Simmons, 2006). The oil and gas reserves have run

out so soon. It is really very important for every nation in the world to work out solutions in

order to face the energy crisis.

It cannot be denied, however, that the countries are continuously struggling to

transit from conventional energy methods to renewable resources. It is also the high time to use

renewable sources for the generation of electricity in order to be environmentally friendly. First

world countries like America, China and Japan are somehow successful in fulfilling their

nations‟ energy requirements by importing oil and setting up new power generation plants.

However, energy crisis is a difficult issue to be handled by the third world countries like Iran and

Pakistan. It can be clearly noticed after having a closer look to the two countries‟ efforts that they

have no solid plans to deal with the energy crisis. The economic condition of Pakistan is not

good enough for providing the nation with the required energy.

The best way to cater with this crisis is to generate electricity locally. It will not only save

energy for the future but will also give rise to the failing economy. It is an undeniable fact that

there are no quick solutions to deal with the energy crisis but with proper planning and

preparation, a nation can develop and improve its ability to deal with surprising and unexpected

energy supply shocks.


Recommendations

Substantial measures are to be taken in order to face the global energy crisis. Those measures

include:

Development and extension of oil, gas and coal stocks to be used at the time of crisis

Dependence on a superior diversity of nonconventional energy resources

Flexible and approachable use of alternative resources of energy

Creating and following monetary policies to cope with ever-rising energy prices

(Weidenbaum, 2002)

Adopting sustainable forms of energy (geothermal, hydroelectric, tidal, solar)

Reallocation of large sums of money for the generation of uncontaminated and protected

energy from sustainable sources

Creation of an International Sustainable Energy Agency that can assure the availability,

development, distribution and utilization of the sustainable energy forms to countries who

experience energy crisis (The Washington Times, July 2006, questia.com)

Encouraging people for adapting alternative energy resources in their daily lives for e.g.

using solar panels for generating electricity within homes (Cornille , Oransky & Pestle,

2000)


References

Simmons, Matthew. (2006). Shock to the System: the Impending Global Energy Supply
Crisis. Harvard International Review, 28(3), retrieved from
http://www.questia.com/PM.qst?a=o&d=5018739203

Scott, Chloe. (2006, September). Half gone: oil, gas, hot air and the global energy
crisis. Geographical,78(9), Retrieved from http://www.questia.com/PM.qst?a=o&d=5017057001

Goodman, R. (1980). Managing the Demand for Energy in the Developing World. In P. K.
Ghosh (Ed.), Energy Policy and Third World Development (p. 138). Retrieved from

Ghosh, P. K. (1984). Energy Policy and Social Progress in Developing Countries. Energy Policy
and Third World Development (p. 148). Westport, CT: Greenwood Press. Retrieved from

Lynas, M. (2008, November 24). World Saved ... Planet Doomed: Green Activists Are Seeing
the Global Economic Crisis as an Opportunity, but the Truth Remains: The Pursuit of High
Economic Growth Cannot Be Reconciled with the Finite Nature of the Earth's Resources. New
Statesman,137, 20+. Retrieved May 12, 2011, from

Gee, R. W., Zhu, S., & Li, X. (2007). China's Power Sector: Global Economic and
Environmental Implications.Energy Law journal, 28(2), 421+. Retrieved May 12, 2011, from

Mastepanov, Dr. Alexey M. Ministry of Energy of the Russian Federation, Head, Fuel and
Energy Complex Strategic Development Department. (n.d.).Energy strategy of the russian
federation to the year 2020 Retrieved from
http://ec.europa.eu/energy/russia/presentations/doc/energy-strategy2020_en.pdf

Farrell Jr., L. P. (2007, September). U.S. Faces Global Competition for Energy.National
Defense, 92, 6. Retrieved May 12, 2011, from

Schmitt, G. J. (2006, Summer). Natural Gas: The Next Energy Crisis? the United States Has
Long Been "Addicted" to Foreign Oil. but We Now Risk Becoming Dependent on Foreign
Natural Gas as Well.Issues in Science and Technology, 22, 59+. Retrieved May 13, 2011, from


Whitten, N. (2006, May 18). Can the Energy Crisis Be Solved by Nuclear?. Evening Chronicle,
p. 45. Retrieved May 12, 2011, from http://www.questia.com/PM.qst?a=o&d=5015146872

Gartenstein-Ross, D. (2008, June 1). Approaches to America's Energy Crisis.Foundation for
Defense of Democracies. Retrieved May 13, 2011, from
http://www.defenddemocracy.org/index.php?option=com_content&task=view&

Weidenbaum, M. L. (2002, January). Meeting the Global Energy Challenge: "There Are No
Quick Solutions to the Energy Supply and Infrastructure Challenge Facing the U.S. Specifically
and the Global Marketplace Generally.". USA Today, 130, 21+. Retrieved May 13, 2011, from

Haq, Dr noor ul. . Energy Crisis in Pakistan . Pdf, Retrieved May 13, 2011, from http://ipripak.
Org/factfiles/ff99. Pdf .

The Washington Times (2006, July 30). Seeking Safer Energy Choices. The Washington Times,
p. B05. Retrieved May 12, 2011, from http://www.questia.com/PM.qst?a=o&d=5015859384

Cornille, T. A., Oransky, K. S., & Pestle, R. (2000). Changing Family Lifestyles: Adapting to the
Energy Crisis. Journal of Family and Consumer Sciences, 92(4), 1+. Retrieved May 14, 2011,
from http://www.questia.com/PM.qst?a=o&d=5035438700

International approach to energy crisis management

Recomendados

Recomendados

Mais conteúdo relacionado

Destaque

Destaque (20)

International approach to energy crisis management