Global Oil Crisis
1508 WordsNov 7th, 20087 Pages
Whenever we talk about world energy source issues, everyone shows concern because the oil prices are increasing all the time. In addition, energy sources are depleting and will be exhausted one day. This phenomenon is called “the global oil crisis”. According to a theory by King (1956), all nations around the world will face an oil production crisis following a bell shaped curve based on the limits of exploitability and market pressure. Of course, not every nation will be faced with “Peak Oil”, it is based on the individual nation’s perspective and calculation of understanding peak oil. There are three main contributing factors that have caused this current global oil crisis: political instability, market pressure and the depletion of…show more content…
For example, in 1974, the political conflict between Arab nations and Israel resulted in several Arab exporting oil nations imposed an embargo on the countries who supporting Israel. Oil prices went from $3.00 per barrel to $12.00 which meant the price of oil had been quadrupled and it was caused by political instability in the Middle East. A series of political conflicts such as crisis in Iran in 1979, the Iraq-Iran war 1979, the Gulf War 1990, and the Iraq-Kuwait war 1990 contributed to the level of prices in the international market.
Market pressure is another cause of the global oil crisis. Oil has a strong worldwide demand within the world’s population continues to grow. Billion of prosperous people especially in China and India will continue to push pressure on the oil market even though the price of oil is expensive. This is because they need energy sources to run their industrial sectors and transportation sectors. To meet with the market pressure, many oil producing nations have met with the limitation of oil supply due to the limitation of oil producing. To control the market pressure, the price of oil has to become expensive in the global oil market. Thus, it will give less demand on crude oil in the global market Apart from that, other external cause also result market pressure on the global oil crisis. For example, the shortage supply problems resulting from the Hurricane Gustav on 26 August
Essay on Energy Crisis
1570 Words7 Pages
Energy is important to our nation for many reasons. It is a key economic driver. It offers new market opportunities for business. Providing energy to our nation has been an exciting challenge in recent years. Many changes have been constant throughout that period. The past tells Americans that predicting the specifics of the energy future for our nation with great accuracy would be unlikely. Americans get their energy from different types of resources. With all the different resources Americans believe that an energy crunch shouldn’t happen.
The crisis is a nationwide energy discontent in which natural gas rates have soared to the highest level in 15 years, and OPEC has slashed its oil output again to keep…show more content…
More than half of the growth for natural gas, over the next 20 years, will come from the electric generation market. The use of natural gas in this country could increase by more than a third in the next 20 years. In the electric power generation industry, natural gas could increase as much as 250 percent for power generation.
The United States now has two percent of the world’s proven crude-oil reserves. Most of the American produced oil comes form old wells, where the output declines over the years. Production costs are lower overseas, so it is cheaper to buy from OPEC nations than from many American suppliers. Increasing energy supplies requires not only wells but new pipelines to transport oil and natural gas. In 1998, the United States consumed 9.8 million more barrels of oil a day than it produced.
The economic miracles of the 20th century were powered by fossil fuels. The 21st century may be seen by an equally dramatic change from fossil fuels, and the environmental chaos they brought. The result may be less than an energy revolution. The cost of fossil fuel energy produced is comparable to that of electricity. A fuel cell cleanly and quietly combines oxygen and hydrogen to produce electricity. Fuel cells could one day sit in thousands of basements producing power and hot water, without fossil fuels. Some fossil fuel lobbyists still argue that it will be difficult and expensive to find an alternative to oil and coal.