There was an oil crisis at the start of 2020, followed by the COVID-19 epidemic, and now there is yet another global energy catastrophe.
Russia’s invasion of Ukraine in February 2022 led to the worst food and fuel crises since World War II. Since Russia is the world’s top exporter of oil to international markets, the war had a substantial impact on the majority of economic sectors both nationally and internationally. The oil and petrol sector was particularly damaged.
The International Energy Agency (IEA) is concerned that the rapid rise in electricity prices could severely impede the economic recovery.
- Europe And America
- In Our Neighbourhood
- What led to the energy crisis?
- Limited stocks
- An increase in energy consumers
- Aging Infrastructure
- Waste of energy
Europe And America
Natural gas, which has been trading up more than 130 percent in Europe since the start of September and almost eight times higher than the same period last year, is one of the most clear markers of the crisis. In East Asia, the price of this essential good has likewise grown by 85%. Even in the United States, where natural petrol supplies are widely available, the price has risen to a 13-year high.
As its fossil fuel plants are closing faster than green alternatives can replace them, America is currently dealing with its worst energy crisis in nearly five decades.
In Our Neighbourhood
Sri Lanka is currently experiencing its biggest electricity crisis in more than 70 years in our neighbourhood. Similar circumstances are being experienced by Pakistan, which has been forced to cut its formal work week from six to to five days. The state-owned Pakistan State Oil Company is finding it difficult to purchase energy as many financial institutions have stopped funding energy imports, thus these restrictions are being adopted in an effort to limit energy and fuel usage. There are crises in a number of other South Asian nations as well.
What led to the energy crisis?
The 2022 Russian invasion of Ukraine added fuel to the fire of the crisis, which was sparked by a number of economic causes, labour shortages, conflicts, and climate change.
In both developed and developing countries, there have been several reports of energy crises. For example, China is experiencing a coal and electricity crisis, while India is experiencing a coal crisis and
Fuel shortage in the UK .
The experts have cited a variety of causes for this electricity shortage, including pandemics, greenflation, geopolitics, and more.
We may experience a shortfall of fossil fuels in the ensuing decades due to rising global energy use. The availability of reserves is a significant cause of concern as a result.
Every economy will be impacted by the rise in oil prices in many ways, including the state budget, fuel costs, commodity prices, and inflation. Some of these consequences are immediate, while others might happen soon.
The majority of the energy used in our current consumption model comes from non-renewable sources, including uranium, coal, gas, and oil. The first fossil fuel to run out at the current rate of use will be oil. The proven reserves of conventional oil would last between 40 and 60 years, according to forecasts. Another 70 years could be spent using natural gas. There would be enough supplies for coal to last for about two millennia.
An increase in energy consumers
These figures should be viewed in context because they are based on current usage, even if it is obvious that this will rise significantly. The world’s population is expected to reach around 10 billion people in 2050, and the economic development of developing nations will increase energy demands.
In the absence of public initiatives in this area, the International Energy Agency (IEA) estimates that by 2030, the world’s energy demand might rise by more than 50%.
The outdated infrastructure of power generating apparatus is another factor contributing to energy scarcity and shortage. The majority of energy-producing enterprises continue to use out-of-date machinery that reduces energy output. It is crucial to modernise the infrastructure and set a high bar for performance.
Waste Of Energy
Energy waste refers to the wasting of energy sources, particularly fuels and electricity, and is primarily caused by the unnecessary use of energy resources. Because of this, reducing waste is a huge source of energy savings and calls for both individual as well as collective efforts.
Similar to how the oil shocks of the 1970s led to significant advancements in energy efficiency, nuclear, solar, and wind power, the current crisis may hasten the deployment of cleaner, sustainable renewable energy sources like wind and solar. The necessity of putting money into reliable petrol and power network infrastructure in order to better connect regional markets has also been highlighted by the crisis. Both the Inflation Reduction Act of the United States, passed in August 2022, and the EU’s RePowerEU, proposed in May 2022, feature significant steps to advance energy efficiency and encourage renewable energies.