Energy – A Look at Crisis
Energy – any source of usable power, as fossil fuel, electricity, or solar radiation -

Energy crisis can emerge during unusually cold winters due to the increased consumption of energy. There may also be an energy crisis when oil and gas production is disrupted. This may contribute to shortages. Energy is important to everyday living. If an energy shortage is prolonged for too long, management phases may be enforced by authorities.

There are some historical energy crises that have affected us in some way. There was an energy crisis in the 1970’s. The cause of this crisis was due to peaking of oil production in major industrial nations. Those included Germany and the United States as well as other embargoes from other producers. The crisis in 1979 was due to the Iranian Revolution. The Gulf War caused an energy crisis in 1990, which caused a spike in the price of oil.

There was an electricity crisis in California from 2000-2001. This was because of failed deregulation and business corruption. There was a UK fuel protest in 2000 which was caused by the price increase of crude oil. This was combined with high taxation on road fuel that was already in place. The energy crisis as of 2008 is because there was an oil price increase that has already been there since 2003. The cause of this was due to global increases in petroleum demand paired with production stagnation. There is a crisis in South Africa that could last up until 2012 that could lead to large price increases for platinum.

In order to respond to the petroleum crisis, green energy and sustainable living will gain popularity.Hydroelectricity and nuclear power have been the greatest alternatives to fossil fuel to date. Relying more on natural resources will help to keep us from energy crisis. If we make more use out of our renewableresources, we will become less dependent. Not only will this promote clean energy, it will provide a cleaner environment for years to come.

Energy is the resource used to exploit all other resources. This is why the macroeconomic implications of a supply shock-induced crisis are so large. The more we can do to get away from depending on others, the fewer crises we will have. When we are faced with an energy shortage, we have somehow managed to just adapt. We need to get away from adapting and start making ways for ourselves to get out of it. Using renewable sources is the way.