International approach to energy crisis management
Energy Crisis Management 1International Approach to Energy Crisis Management International Approach to Energy Crisis Management
Energy Crisis Management 2 International Approach to Energy Crisis Management An energy crisis can be described as any great log jam in the provision and deliverance ofenergy resources to a country or an economy. In other words, it is a monetary setback that is theresult 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 isgenerated by burning any of the three mentioned energy forms or electricity obtained byhydroelectric power stations, nuclear power stations or geothermal power stations. Wood, animaldung, 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 energysources i.e. man and animal power, crop residues and firewood. On the other hand, thesecountries also need commercial sources of energy like oil, gas, electricity and petrol to run theirurban centers and also to develop their infrastructures (Baron, Ghosh, 1984). Wars or pecuniary catastrophes have always been regarded as grave global economicmenaces. By 1980s, the world had not realized that there could be a possibility of energydeficiency. Though, warned by some energy-students of the probable energy shortage in theapproaching years; the economists didn‟t pay heed because of the generous supplies of energy atstumpy 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 postulationwas based on the theory that Middle East has rich oil reserves that could last for a century.
Energy Crisis Management 3However, with the passage of time, the world witnessed the high demand of oil and gas and lessavailability of energy resources. The availability of cheap and copious Middle East oil is just adream now (Simmons, 2006). It is now globally accepted that the era of cheap coal and oil hascome to an end (Ghosh, 1984). Another undeniable fact in today‟s world is that the availablesupply of oil and gas has been succeeded by the global energy demand. This has consequentlyled to energy “famine”. The consumers have started stockpiling energy which has resulted in aheaving demand for energy resources (Simmons, 2006). Demand winning over supply is not the only energy predicament of the world. The otherproblems concerned with it are security and protection of infrastructures related to energyresources. The frequent terrorist attacks have made governments spend large sums of money forthe safeguard of their energy resources and reserves. One of the other energy risks is the quietcorrosion of global energy infrastructures. Pipelines, off-shore drilling rigs and tankers used inthe extraction of oil and gas globally are becoming „elderly‟. It is all because of the negligence inthe Golden Age of Oil and Gas low-cost availability. The gap in demand and supply of energyneeds to be taken care of by simply reducing the demand but it is such a difficult process that canresult in the collapse and crumpling of today‟s global economy. However, if this energy crisis isnot 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 situationhas compelled the governments and the global industrial sector to cover up impending energyexhaustion. Most of the nations have also started to suspend unconventional and substituteenergy techniques. It is a global catastrophe that every one of us is playing his part in burningenergy too promptly. (Scott, 2006).
Energy Crisis Management 4 The problem of energy supplies deficiency is a global problem. More or less, everycountry in the world is facing a serious energy crisis threat. America, China, Japan, Russia, Iranand 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 orderto compete with this energy crisis challenge, each of the mentioned countries has takenappropriate steps to curb the situation. Their approaches to energy crisis management are aimedat the resolution of threatening energy dilemma. Chinas economy and industrial revolution desperately need natural resources for theiradvancement, progression and development. It is, at present, one of the top three oil consumerand oil importer in the world. With the passing years, its demand for oil has grown considerablyowing to the fact that its industrial sector has revolutionized incredibly. Sustainable developmentis the first priority of China‟s policy. It has also aimed to modernize its energy policies byimproving and rejuvenating its power generation scheme and delivery system. This energypolicy 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 hasalso taken measures to develop wind power potential. Steps are also taken to take full advantageof 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 energyefficiency. Its aim is to minimize energy concentration and energy outflows. It also encouragesthe concept of sustainable development in Russian society. The Energy Strategy of Russiaincludes reorganization and reformation of coal industry, enhancement of the configuration of
Energy Crisis Management 5fuel and energy balance, production costs reduction in energy sector, insolvency of theunsuccessful power plants, and introduction of domestic prices for energy resources. Thesemeasures will facilitate the improvement of the Russian economy and also develop its laborforces. 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 crisisefficiently and successfully. The United States of America has geared up to explore oildomestically rather than importing it from other oil-rich countries. The development ofrenewable energy resources like wind, water and solar energy has been encouraged in the recentyears (Gartenstein-Ross, 2008). Pakistan is one of those unfortunate third world countries where energy crisis is on itspeak 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 beentaken regarding the solution of energy crisis. Every new government has taken the crisis lightlyand dealt with the problem with unenthusiastic and fruitful efforts (Dr. Noor ul Haq, EnergyCrisis in Pakistan, ipripak.org). Iran and Japan are also facing the energy crisis which has alteredthe growth of their economy. Both these countries are striving really hard to cope with thementioned threatening crisis.
Energy Crisis Management 6Analysis Evaluation After getting to know the pros and cons of the mentioned global energy crisis, it can beunderstood that the world is facing a real danger. One of the basic reasons of this catastrophe isthat the human beings are too busy and involved in the rapid energy burning. After seeing andanalyzing the present situation, it is not wrong to say that we are already too late to userenewable or alternative energy resources (Simmons, 2006). The oil and gas reserves have runout so soon. It is really very important for every nation in the world to work out solutions inorder to face the energy crisis. It cannot be denied, however, that the countries are continuously struggling totransit from conventional energy methods to renewable resources. It is also the high time to userenewable sources for the generation of electricity in order to be environmentally friendly. Firstworld countries like America, China and Japan are somehow successful in fulfilling theirnations‟ 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 andPakistan. It can be clearly noticed after having a closer look to the two countries‟ efforts that theyhave no solid plans to deal with the energy crisis. The economic condition of Pakistan is notgood 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 saveenergy for the future but will also give rise to the failing economy. It is an undeniable fact thatthere are no quick solutions to deal with the energy crisis but with proper planning andpreparation, a nation can develop and improve its ability to deal with surprising and unexpectedenergy supply shocks.
Energy Crisis Management 7RecommendationsSubstantial measures are to be taken in order to face the global energy crisis. Those measuresinclude: 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)
Energy Crisis Management 8 ReferencesSimmons, Matthew. (2006). Shock to the System: the Impending Global Energy SupplyCrisis. Harvard International Review, 28(3), retrieved fromhttp://www.questia.com/PM.qst?a=o&d=5018739203Scott, Chloe. (2006, September). Half gone: oil, gas, hot air and the global energycrisis. Geographical,78(9), Retrieved from http://www.questia.com/PM.qst?a=o&d=5017057001Goodman, 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 fromhttp://www.questia.com/PM.qst?a=o&d=25458091Ghosh, P. K. (1984). Energy Policy and Social Progress in Developing Countries. Energy Policyand Third World Development (p. 148). Westport, CT: Greenwood Press. Retrieved fromhttp://www.questia.com/PM.qst?a=o&d=25458091Lynas, M. (2008, November 24). World Saved ... Planet Doomed: Green Activists Are Seeingthe Global Economic Crisis as an Opportunity, but the Truth Remains: The Pursuit of HighEconomic Growth Cannot Be Reconciled with the Finite Nature of the Earths Resources. NewStatesman,137, 20+. Retrieved May 12, 2011, fromhttp://www.questia.com/PM.qst?a=o&d=5036287324Gee, R. W., Zhu, S., & Li, X. (2007). Chinas Power Sector: Global Economic andEnvironmental Implications.Energy Law journal, 28(2), 421+. Retrieved May 12, 2011, fromhttp://www.questia.com/PM.qst?a=o&d=5044894690Mastepanov, Dr. Alexey M. Ministry of Energy of the Russian Federation, Head, Fuel andEnergy Complex Strategic Development Department. (n.d.).Energy strategy of the russianfederation to the year 2020 Retrieved fromhttp://ec.europa.eu/energy/russia/presentations/doc/energy-strategy2020_en.pdfFarrell Jr., L. P. (2007, September). U.S. Faces Global Competition for Energy.NationalDefense, 92, 6. Retrieved May 12, 2011, fromhttp://www.questia.com/PM.qst?a=o&d=5036532032Schmitt, G. J. (2006, Summer). Natural Gas: The Next Energy Crisis? the United States HasLong Been "Addicted" to Foreign Oil. but We Now Risk Becoming Dependent on ForeignNatural Gas as Well.Issues in Science and Technology, 22, 59+. Retrieved May 13, 2011, fromhttp://www.questia.com/PM.qst?a=o&d=5016795317
Energy Crisis Management 9Whitten, 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=5015146872Gartenstein-Ross, D. (2008, June 1). Approaches to Americas Energy Crisis.Foundation forDefense of Democracies. Retrieved May 13, 2011, fromhttp://www.defenddemocracy.org/index.php?option=com_content&task=view&Weidenbaum, M. L. (2002, January). Meeting the Global Energy Challenge: "There Are NoQuick Solutions to the Energy Supply and Infrastructure Challenge Facing the U.S. Specificallyand the Global Marketplace Generally.". USA Today, 130, 21+. Retrieved May 13, 2011, fromhttp://www.questia.com/PM.qst?a=o&d=5002450417Haq, 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=5015859384Cornille, T. A., Oransky, K. S., & Pestle, R. (2000). Changing Family Lifestyles: Adapting to theEnergy 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