Energy Crisis Lecture 1

Question 1

A resource is a?

Answer 1

Stock or supply of money, materials and other assets which are needed to function efficiently

A countries collective means of functioning itself

Various across space and time

Use value of resources and control over them= power

Question 2

Energy is?

Answer 2

Critical resource in the process of development

Direct links between energy consumption and economic development

Economies and societies have developed around carbon based fuels for decades

21st century goal of decarbonising development

Question 3

The concept of sustainable development?

Answer 3

A pattern of economic growth in which resource use aims to meet human needs while preserving the environment

Question 4

Carrying capacity?

Answer 4

Limits to growth, existing patterns of resource consumption are unsustainable

Question 5

Interdependence

Answer 5

Exists across time and space: understanding this concept helps us to recognise our responsibilities for the future

Question 6

What is an energy crisis?

Answer 6

Large drop in supply or a large rise in price of energy

Shortage of crude oil and electricity as well as other non-renewable sources

Enormous increase in global demand for energy in recent years due to IR and pop growth

Disconnect between demand and supply

Question 7

What can cause an energy crisis?

Answer 7

• Price fluctuations and manipulations
• industrial actions
• over consumption
• distribution problems
• political events

Question 8

1970’s energy crisis

Answer 8

World oil production peaks

Stagnant growth And price inflation

Run up in prices resulted from the perception of a crisis

Question 9

1973 crisis

Answer 9

Organisation of Arab Petroleum Exporting Countries- declared limit/stop shipments to US & other countries if they supported Israel

Use there leverage over oil price-setting to stabilise incomes by rising prices

Triggered a stick market crash- inflation and unemployment

Question 10

1979 crisis

Answer 10

Workers in Iran strike- production drops significantly

Iranian revolution in 1979 shatters the oil sector, lower prices therefore lower volume

Question 11

Result of the 1970’s crisis?

Answer 11

Many countries created strategic petroleum reserves to produce energy security

1980’s Iraqi invasion of Iran nearly stood all production

Periods of economic recession in 1970’s, inflation and unemployment

Question 12

The Gulf War

Answer 12

1990: oil prices rise following invasion of Kuwait, $15- 30 per barrel

Saddam Hussein- overproducing oil

US led UN coalition to oust Hussein

Iraqis military set fire to 600+ oil wells

Question 13

“Gulf-war 2” is what?

Answer 13

Perception of intervention as about access to oil

Operation Iraqi freedom- disarm Iraq

Plans to exploit oil reserves by UK

Question 14

Energy Crisis in the 2000’s

Answer 14

Oil price per barrel rose $147 by 2008

Caused by: declining petroleum reserves, tension in Middle East, slowdown in oil supply growth

To mitigate rise in price= increasing supply, finding substitutes, decreasing demand

Question 15

Global demand and rising powers

Answer 15

Demand has grown and is highest in emerging economies (China, Brazil, India)

China= oil consumption grow by 8% per year since 2002, become the worlds larger energy producer

Consumption is key to these rising powers

Question 16

Crisis and opportunity FAQ

Answer 16

Demand will be 28% higher in 2040

Pop expected to be 9billion

Global energy mix- only 3% renewable (BP 2017)

Fossil fuels provided 85% of the worlds energy in 2017

Oil reserves will fall about 40-60% by 2030

Peak oil- point in time when the max rate of petroleum extraction is reached, terminal decline

IEA- must find equivalent of 4 Saudi Arabia’s in next 20 years to replace lost oil

Question 17

Coal FAQ’s

Answer 17

Provides 28% of global primary energy and 40% of worlds electricity

2011 coal was the fastest growing form of energy outside renewables

Demand since 2000 has increased 3.8%

7 million jobs worldwide

Key component in producing Steele and concrete

Clean coal tech

Developing countries have energy poverty

Question 18

China Coal

Answer 18

Coal consumption stagnated BUT not in emerging countries

E.g. China responsible for 40% of worlds coal production

Chinese domestic coal market is more than 3x that of entire coal trade

90% China’s reserves are arid

2300 coal fired power stations, 620 are in China

Air pollution= climate change

116 years left of coal

Question 19

Gas reserves

Answer 19

50 years left

Produces around half carbon emissions than that if coal

US biggest consumer

Production grew 50% since 2005-15

Proven gas reserves- 190 trillion metric cubic metres
Recoverable- 400tmc confident to be discovered
Unconventional sources- trapped gas 400tmc

Golden age for gas- Economically worth wild

Environmental concerns contamination of water

Question 20

Hydraulic fracturing

Answer 20

Uses fluids pumped at high pressure to pulverise and release the oil and gas trapped deep underground

Question 21

Solutions to crisis-

Answer 21

Holistic approaches encompassing relations to politics, the economy and environment