Energy crisis

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An energy crisis or energy shortage is any significant

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.

Large fluctuations and manipulations in future derivatives can impact price. Investment banks trade 80% of oil derivatives as of May 2012, compared to 30% a decade ago.^[2] This consolidation of trade contributed to an improvement of global energy output from 117,687 TWh in 2000 to 143,851 TWh in 2008.^[3] 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.^[4]

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.

Historical crises

• North Korea has had energy shortages for many years.
• Zimbabwe has experienced a shortage of energy supplies for many years due to financial mismanagement.

20th century

• embargoes
  from other producers
  • 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

2000s

• 2000 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.
• 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.
• 2000–2001
  California electricity crisis – Caused by market manipulation by Enron and failed deregulation; resulted in multiple large-scale power outages
• 2000–2008 North American natural gas crisis
• 2004 energy crisis in Argentina
• 2005, 2008 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.^[5] Supplies of electricity in Guangdong province, the manufacturing hub of China, are predicted to fall short by an estimated 10 GW.^[6] In 2011 China was forecast to have a second quarter electrical power deficit of 44.85 – 49.85 GW.^[7]
• 2007 Political riots occurring during the
  2007 Burmese anti-government protests
  were sparked by rising energy prices.

• 2008 energy crisis in Central Asia, 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.^[8]
• 2008. In February, the President of
  Pakistan national energy policy, which extended the official weekend and banned neon lights in response to a growing electricity shortage.^[10]
• 2008 South African energy crisis. The South African crisis led to large price rises for platinum in February 2008 and reduced gold production.^[11] and continues as of 2023.

2010s

• 2012 United Kingdom fuel crisis
• 2015 – 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.
• 2017 – The
  Palestinian Authority/Fatah, which 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.^{[12][13][14][15]}
• 2019 California energy crisis

• 2021 Texas power crisis
• 2021 United Kingdom natural gas supplier crisis and 2021 United Kingdom fuel supply crisis
• 2021 global energy crisis. The record-high energy prices were driven by a global surge in demand as the world quit the economic recession caused by COVID-19 pandemic, particularly due to strong energy demand in Asia.^[16][17][18]
• The Lebanese liquidity crisis lead to shortages of fuel for electricity plants, resulting in the 2021 Lebanese blackout and public utilities being able to offer power for only a few hours a day.^[19]

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."^[20]

Mitigation efforts

To avoid the serious

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.

The

In the market, new technology and energy efficiency measures become desirable for consumers seeking to decrease transport costs.^[27] Examples include:

• In 1980
  hybrid electric automobile; also appearing are plug-in hybrids
  .
• the growth of
  advanced biofuels
  .
• innovations like the Dahon, a folding bicycle
• modernized and electrifying passenger transport
• Ganz-Mavag
  locomotive
• variable compression ratio for vehicles

Other responses include the development of

The percentage of businesses indicating that energy prices represent a barrier to investment has increased in 2022 (82%) as found in recent surveys, particularly for those who see it as a significant obstacle (59%). According to varied energy prices and energy intensity across nations and industries, various countries have different percentages of businesses that view energy costs as a key obstacle, ranging from 24% in Finland to 81% in Greece for example.^[28]

Crisis management

An electricity shortage is felt most acutely in heating, cooking, and water supply. Therefore, a sustained energy crisis may become a humanitarian crisis. If an energy shortage is prolonged a crisis management phase is enforced by authorities. Energy audits may be conducted to monitor usage. Various curfews with the intention of increasing energy conservation may be initiated to reduce consumption. For example, to conserve power during the Central Asia energy crisis, authorities in Tajikistan ordered bars and cafes to operate by candlelight."Crisis Looms as Bitter Cold, Blackouts Hit Tajikistan". NPR. Retrieved 10 February 2008.

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 increases.^{[citation needed]}

See also