Energy Crisis Lecture 1 Flashcards
Power Point Slides
A resource is a?
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
Energy is?
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
The concept of sustainable development?
A pattern of economic growth in which resource use aims to meet human needs while preserving the environment
Carrying capacity?
Limits to growth, existing patterns of resource consumption are unsustainable
Interdependence
Exists across time and space: understanding this concept helps us to recognise our responsibilities for the future
What is an energy crisis?
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
What can cause an energy crisis?
- Price fluctuations and manipulations
- industrial actions
- over consumption
- distribution problems
- political events
1970’s energy crisis
World oil production peaks
Stagnant growth And price inflation
Run up in prices resulted from the perception of a crisis
1973 crisis
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
1979 crisis
Workers in Iran strike- production drops significantly
Iranian revolution in 1979 shatters the oil sector, lower prices therefore lower volume
Result of the 1970’s crisis?
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
The Gulf War
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
“Gulf-war 2” is what?
Perception of intervention as about access to oil
Operation Iraqi freedom- disarm Iraq
Plans to exploit oil reserves by UK
Energy Crisis in the 2000’s
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
Global demand and rising powers
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
Crisis and opportunity FAQ
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
Coal FAQ’s
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
China Coal
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
Gas reserves
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
Hydraulic fracturing
Uses fluids pumped at high pressure to pulverise and release the oil and gas trapped deep underground
Solutions to crisis-
Holistic approaches encompassing relations to politics, the economy and environment
