An energy crisis is any great bottleneck in the supply of energy resources to an economy. In popular literature though, it often refers to one of the energy sources used at a certain time and place, particularly those that supply national electricity grids or serve as fuel for vehicles. There has been an enormous increase in the global demand for energy in recent years as a result of industrial development and population growth. Since the early 2000s the demand for energy, especially from liquid fuels, and limits on the rate of fuel production has created such a bottleneck leading to the current energy crisis. Causes Market failure is possible when monopoly manipulation of markets occurs. A crisis can develop due to industrial actions like union organized strikes and government embargoes. The cause may be over-consumption, aging infrastructure, choke point disruption or bottlenecks at oil refineries and port facilities that restrict fuel supply. An emergency may emerge during unusually cold winters due to increased consumption of energy. Large fluctuations and manipulations in future derivatives can have a substantial impact on price. Large investment banks control 80% of oil derivatives as of May 2012, compared to 30% only a decade ago. Kuwaiti Oil Minister Hani Hussein stated that "Under the supply and demand theory, oil prices today are not justified," in an interview with Upstream. 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 is due to the excess and useless use of the fuels. Historical crises 1970s energy crisis - caused by the peaking of oil production in major industrial nations (Germany, United States, Canada, etc.) and embargoes from other producers 1973 oil crisis - caused by an OPEC oil export embargo by many of the major Arab oil-producing states, in response to Western support of Israel during the Yom Kippur War 1979 oil crisis - caused by the Iranian Revolution 1973 oil crisis - caused by an OPEC oil export embargo by many of the major 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 The 2000--2001 California electricity crisis - Caused by market manipulation by Enron and failed deregulation; resulted in multiple large-scale power outages 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. North American natural gas crisis 2004 Argentine energy crisis North Korea has had energy shortages for many years. Zimbabwe has experienced a shortage of energy supplies for many years due to financial mismanagement. Political riots occurring during the 2007 Burmese anti-government protests were sparked by rising energy prices. 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 U.S. dollar, and a myriad of other secondary causes. 2008 Central Asia energy crisis, 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."Mbeki in pledge on energy crisis". Financial Times. Retrieved 2008-02-10. In February 2008 the President of Pakistan announced plans to tackle energy shortages that were reaching crisis stage, despite having significant hydrocarbon reserves,. In April 2010, the Pakistani government announced the Pakistan national energy policy, which extended the official weekend and banned neon lights in response to a growing electricity shortage. South African electrical crisis. The South African crisis led to large price rises for platinum in February 2008 and reduced gold production. 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. Supplies of electricity in Guangdong province, the manufacturing hub of China, are predicted to fall short by an estimated 10 GW. In 2011 China was forecast to have a second quarter electrical power deficit of 44.85 - 49.85 GW. Attribution: Article text available under CC-BY-SA Public domain image source in video

• published: 16 Nov 2013
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