This article is about energy crises in general. For other uses, see Oil crisis
The gasoline shortages of World War II
brought about the resurgence of horse-and-wagon delivery.
Most energy crises have been caused by localized shortages, wars and market manipulation. Some have argued that government actions like tax hikes, nationalisation of energy companies, and regulation of the energy sector, shift supply and demand of energy away from its economic equilibrium. However, the recent historical energy crisis listed below were not caused by such factors. Market failure
is possible when monopoly
manipulation of markets occurs. A crisis can develop due to industrial actions like union
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 very cold winters due to increased consumption of energy.
Large fluctuations and manipulations in future derivatives
can have a substantial impact on price. Large investment banks control 80% of oil derivatives as of May 2012, compared to 30% only a decade ago.
This increase contributed to an improvement of global energy output from 117 687 TWh in 2000 to 143 851TWh in 2008.
Limitations on free trade for derivatives could reverse this trend of growth in energy production. Kuwaiti Oil Minister Hani Hussein stated that "Under the supply and demand theory, oil prices today are not justified," in an interview with Upstream.
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. Fuel shortage can also be due to the excess and useless use of the fuels.
has experienced a shortage of energy supplies for many years due to financial mismanagement.
- 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 US 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."Mbeki in pledge on energy crisis". Financial Times. Retrieved 2008-02-10.
- In February 2008 the President of Pakistan announced plans to tackle energy shortages that were reaching crisis stage, despite having significant hydrocarbon reserves,. In April 2010, the Pakistani government announced the Pakistan national energy policy, which extended the official weekend and banned neon lights in response to a growing electricity shortage.
- South African electrical crisis. The South African crisis led to large price rises for platinum in February 2008 and reduced gold production.
- China experienced severe energy shortages towards the end of 2005 and again in early 2008. During the latter crisis they suffered severe damage to power networks along with diesel and coal shortages. Supplies of electricity in Guangdong province, the manufacturing hub of China, are predicted to fall short by an estimated 10 GW. In 2011 China was forecast to have a second quarter electrical power deficit of 44.85 – 49.85 GW.
- Nepal experienced a major energy crisis in 2015 when India imposed an economic blockade on Nepal. Nepal faced shortages of various kinds of petroleum products and food materials which severely affected Nepal's economy.
- The Gaza electricity crisis is a result of the tensions between Hamas, who rules the Gaza Strip, and the Palestinian Authority/Fatah, who rules the West Bank over custom tax revenue, funding of the Gaza Strip, and political authority. Residents receive electricity for a few hours a day on a rolling blackout schedule.
- 2019 California energy crisis
Emerging oil shortage
"Peak oil" is the period when the maximum rate of global petroleum extraction
is reached, after which the rate of production enters terminal decline. It relates to a long-term decline in the available supply of petroleum. This, combined with increasing demand, significantly increases the worldwide prices of petroleum-derived products. Most significant is the availability and price of liquid fuel for transportation.
The US Department of Energy in the Hirsch report
indicates that "The problems associated with world oil production peaking will not be temporary, and past 'energy crisis' experience will provide relatively little guidance."
To avoid the serious social
implications a global decline in oil production could entail, the 2005 Hirsch report emphasized the need to find alternatives, at least ten to twenty years before the peak, and to phase out the use of petroleum over that time. Such mitigation
could include energy conservation, fuel substitution, and the use of unconventional oil. Because mitigation can reduce the use of traditional petroleum sources, it can also affect the timing of peak oil and the shape of the Hubbert curve
To avoid a serious energy crisis in coming decades, citizens in the industrial countries should actually be urging their governments to come to an international agreement on a persistent, orderly, predictable, and steepening series of oil and natural gas price hikes over the next two decades.
Due to a lack of political viability on the issue, government-mandated fuel prices hikes are unlikely and the unresolved dilemma
of fossil fuel dependence is becoming a wicked problem
. A global soft energy path
seems improbable, due to the rebound effect
. Conclusions that the world is heading towards an unprecedented large and potentially devastating global energy crisis due to a decline in the availability of cheap oil lead to calls for a decreasing dependency on fossil fuel
Other ideas concentrate on design and development of improved, energy-efficient urban infrastructure in developing nations.
Government funding for alternative energy is more likely to increase during an energy crisis, so too are incentives for oil exploration
. For example, funding for research into inertial confinement fusion
technology increased during the 1970s.
2010s oil glut
Rather counterintuitively, the world economy has had to deal with the unforeseen consequences of the 2015–2016 oil glut
also known as 2010s oil glut
, a major energy crisis that took many experts by surprise. This oversupply
crisis started with a considerable time-lag, more than six years after the beginning of the Great Recession
: "the price of oil
[had] stabilized at a relatively high level (around $100 a barrel) unlike all previous recessionary cycles since 1980 (start of First Persian Gulf War). But nothing guarantee[d] such price levels in perpetuity
Social and economic effects
implications of a supply shock
-induced energy crisis are large, because energy is the resource used to exploit all other resources. Oil price shocks can affect the rest of the economy through delayed business investment,
sectoral shifts in the labor market,
or monetary policy responses.
When energy markets
fail, an energy shortage develops. Electricity consumers may experience intentionally engineered rolling blackouts
during periods of insufficient supply or unexpected power outages
, regardless of the cause.
Industrialized nations are dependent on oil, and efforts to restrict the supply of oil would have an adverse effect on the economies of oil producers. For the consumer, the price of natural gas
(petrol) and diesel
for cars and other vehicles rises. An early response from stakeholders is the call for reports, investigations and commissions into the price of fuels. There are also movements towards the development of more sustainable urban infrastructure
Global New Investments in Renewable Energy
In the market, new technology and energy efficiency
measures become desirable for consumers seeking to decrease transport costs.
trends and gas-guzzler
ownership varies with fuel costs. Energy shortages can influence public opinion on subjects from nuclear power plants
to electric blankets. Building construction techniques—improved insulation
, reflective roofs, thermally efficient windows, etc.—change to reduce heating costs.
In the worst kind of energy crisis energy rationing
and fuel rationing
may be incurred. Panic buying
may beset outlets as awareness of shortages spread. Facilities close down to save on heating oil; and factories cut production and lay off workers. The risk of stagflation
- ^ F. William Engdahl (Mar 18, 2012). "Behind Oil Price Rise: Peak Oil or Wall Street Speculation?". Axis of Logic. Retrieved 21 March 2012.
- ^ Eenergiläget in Sweden 2012 figure 49000 and 53
- ^ Associated Press (12 March 2012). "Kuwait says high oil price not justified". UpStreamOnline. Retrieved 21 March 2012.
- ^ "Musharraf for emergency measures to overcome energy crisis". Associated Press of Pakistan. Archived from the original on 2007-04-22. Retrieved 2008-02-10.
- ^ "Pakistan's PM announces energy policy to tackle crisis". BBC. April 22, 2010. Retrieved 22 April 2010.
- ^ "Energy crisis upsets platinum market". Nature. Retrieved 2008-02-21.
- ^ "Coal shortage has China living on the edge". Archived from the original on 2009-01-16. Retrieved 2008-03-08.
- ^ "China's Guangdong faces severe power shortage". Reuters. 2008-03-06. Retrieved 2008-03-08.
- ^ "TABLE-China power shortage forecasts by region". Reuters. 2011-06-02. Retrieved 2011-06-12.
- ^ Israel cannot shirk its responsibility for Gaza's electricity crisis, B'Tselem, 16 Jan 2017
- ^ Palestinian Authority halts payments for Israeli electricity to Gaza: Israel, Reuters, 27th April 2017
- ^ Gaza's electricity crisis sheds light on gap between social classes, al-Monitor, March 2016
- ^ The humanitarian impact of Gaza's electricity and fuel crisis Archived 2017-03-22 at the Wayback Machine, UN OCHA, March 2014
- ^ "DOE Hirsch Report" (PDF). Archived from the original (PDF) on 2009-12-15. Retrieved 2012-01-14.
- ^ Vittorio E. Pareto, Marcos P. Pareto (August 2008). "The Urban Component of the Energy Crisis". SSRN 1221622.
- ^ "Super Fuel: Thorium, The Green Energy Source For The Future", Macmillan, 2012.
- ^ Firzli, M. Nicolas J. (6 April 2014). "A GCC House Divided: Country Risk Implications of the Saudi-Qatari Rift". Al-Hayat. London. Retrieved 29 December 2014.
- ^ Bernanke, Ben S. (February 1983). "Irreversibility, Uncertainty, and Cyclical Investment" (PDF). The Quarterly Journal of Economics. 98 (1): 85–106. doi:10.2307/1885568. JSTOR 1885568.
- ^ Hamilton, James D. (1988). "A Neoclassical Model of Unemployment and the Business Cycle". Journal of Political Economy. 96 (3): 593–617. doi:10.1086/261553. ISSN 0022-3808. JSTOR 1830361.
- ^ Bernanke, Ben; Gertler, Mark; Watson, Mark (1997). "Systematic Monetary Policy and the Effects of Oil Price Shocks" (PDF). Brookings Papers on Economic Activity. 28: 91–157.
- ^ Bloomberg New Energy Finance, UNEP SEFI, Frankfurt School, Global Trends in Renewable Energy Investment 2011 Archived 2013-01-13 at archive.today
- ^ Bergin, Tom (January 30, 2008). "High Oil Prices Boost Energy Efficiency - Report". www.planetark.org. Retrieved 2015-10-26.
- Ammann, Daniel (2009). The King of Oil: The Secret Lives of Marc Rich. New York: St. Martin's Press. ISBN 978-0-312-57074-3.
- The Power of Community: How Cuba Survived Peak Oil – examines the effect of cold war oil shortages during the Special Period.
- Resource Wars: The New Landscape of Global Conflict by Michael Klare
- Half Gone: Oil, Gas, Hot Air and the Global Energy Crisis by Jeremy Leggett
- The Long Emergency by James Howard Kunstler, explores a psychology of previous investment
- Eating Fossil Fuels by Dale Allen Pfeiffer
- The Coming Oil Crisis by Colin Campbell
- Energy and American Society: Thirteen Myths – disputes an energy crisis exists in 2007
- The Final Energy Crisis (2nd edition) ed by Sheila Newman (Pluto Press, London, 2008); a study of energy trends, prospects, assets and liabilities in different political systems and regions
- The End of Oil by Paul Roberts
- Sustainable energy - Without the Hot Air, David J.C. MacKay, 384 pages, UIT Cambridge (2009) ISBN 978-0954452933
- 2081: A Hopeful View of the Human Future, Gerard K. O'Neill, 284 pages, Simon & Schuster (1981) ISBN 978-0671242572
- The Nuclear Imperative: A Critical Look at the Approaching Energy Crisis (More Physics for Presidents), Jeff Eerkens, 212 pages, Springer (2010) ISBN 978-9048186662
- Rocks, Lawrence; Runyon, Richard P (1972). The Energy Crisis. Crown Publishers. ISBN 978-0-517-501641.
Last edited on 13 May 2021, at 10:45
Content is available under CC BY-SA 3.0
unless otherwise noted.