Energy Crisis

Topics: Peak oil, 1973 oil crisis, Energy crisis Pages: 9 (2454 words) Published: November 15, 2011

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.

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...
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