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International approach to energy crisis management
1. Energy Crisis Management 1
International Approach to Energy Crisis Management
International Approach to Energy Crisis Management
2. 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 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.
3. Energy Crisis Management 3
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).
4. Energy Crisis Management 4
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
5. Energy Crisis Management 5
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.
6. Energy Crisis Management 6
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.
7. Energy Crisis Management 7
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)
8. Energy Crisis Management 8
References
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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
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Lynas, M. (2008, November 24). World Saved ... Planet Doomed: Green Activists Are Seeing
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