Case Study: Energy Security Issues: California Case Study Flashcards
Facts:
Largest state in the USA
Lowest per capita energy consumption rate in the USA due to mild weather
16% of USA oil reserves, but only 3% of gas reserves
Produces 5% of USA total electricity
More motor vehicles that any other state
Why is the USA in energy crisis?
1) Consumption- In 2007 USA consumed 23.8% of the world’s oil
2) Reliance on imports- between 1960 and 2003 USA’s reliance on imported gas and oil increased by 18% to 58%- 9/11 terrorist attack highlight concerns on dependence on imports from the Middle East.
3) Price- In 2006 the price of oil had risen from $20 to $60 per barrel. In 2008 the oil was $140
4) Reserves of fossil fuels are being to run out reserves should last for between 40-65 years
5) Global sources of energy are unevenly distributed- most are concentrated in politically unstable parts of the world
6) Demand for energy is increasing- the growth of economies in China and India has meant more competition for resources
So why is California suffering an energy crisis?
US energy market is privatised so its mainly profit driven.
Between June 2000 and May 2001 California experienced a series of blackouts due to
various factors:
a. The weather: 2000 was the 3rd years of drought so less surplus energy due to lack of hydroelectricity
from surrounding states
- Summer was very hot so increased demand for air-conditioning
- Winter was unusually cold so increased need for heating
b. Insufficient generating capacity strong anti-pollution laws in the 1970s meant energy
companies were unwilling to build new power stations that were expensive
c. Limited capacity of power lines to important more electricity
d. Eron -> used supply and demand to ensure energy prices remained high enough when supply was good
Therefore the two major power companies in California were forced to shut off electricity supplies
to conserve limited stocks
