Please enable JavaScript.
Coggle requires JavaScript to display documents.
The Energy Crisis - Coggle Diagram
The Energy Crisis
The Conflict
The energy crisis is a sharp mismatch between the supply and demand of energy, resulting in prices sky-rocketing while sources of energy are rapidly depleting.
-
This is the first ever truly global energy crisis, because we are more interconnected and interdependent than ever before.
Causes
Energy markets began tightening post-pandemic due to weather conditions, climate change, economic recovery, delayed maintenance work, and a reduction in investments.
-
Russia is the world's largest fuel exporter, and an important supplier to Europe. Russia had been withholding gas supplies from Europe in 2021, months before it invaded Ukraine. Europe tried to replace Russia's supply by diverting LNG supply from Asia for higher prices. This caused an increase in the price of electricity as well. The US, many European countries, and their Asian allies refused to buy Russian oil. International trade routes were reconfigured and oil prices soared as companies struggles meet the surge in demand.
-
There is strain on energy sources such as oil, coal, and gas due to overconsumption and overpopulation.
-
There is a poor distribution system that does not allow energy to be available and accessible to everyone.
-
Effects
-
-
Caused severe social, political, and economic strains
Shift from gas and oil to coal, increasing environmental hazards
-
-
People are holding strikes due to power shortages and under-developed and developing countries are having a hard time coping
-
-
This crisis deals with not only oils, but all forms of fossil fuels.
The Solutions
Use of renewable resources like hydropower, solar power, wind energy, geothermal energy, and biofuels
-
Reduction of energy consumption, responsible use of energy and fuel. Reduce heating and cooling by just 1 degree to save 7% energy. Switch off electric appliances when not in use. Use public transport, carpool, or ride a bike.
-
The International Energy Agency (IEA), established after the oil crisis of 1970, released two stocks of emergency oil and some IEA member countries released additional stocks. The total resulted in over 240 million barrels of extra oil
The IEA has also curated action plans to cut oil use, reduce Europe's reliance on Russia, and reduce daily energy consumption by citizens
The Stakeholders
Europe
In the United Kingdom, 31/70 natural gas domestic suppliers went out of business. Household bills are expected to rise by 80%.
In Greece, electricity prices hit a record high.
In Germany, citizens have resorted to deforestation to obtain firewood.
In France, 32/56 nuclear reactors were shut down and President Emmanuel Macron's approval ratings went down to 36% due to the energy crisis.
Asia
In Bangladesh, the price of petrol has increased nearly 52%, causing street protests.
In China, companies have been told to limit consumption and residents are facing blackouts. Prices for industrial metals have reached record heights as a result of the increasing price of electricity and natural gas. China increased its reliance on Russia, paying up to USD 19 billion for fuel in the first half of 2022.
In India, there have been power outages in Uttar Pradesh, Rajasthan, and multiple other states, resulting in an increase in coal production. It also increased its reliance on Russia, with the price of imports being tripled to almost 5 billion.
Africa
In Ethiopia, diesel prices increased by 38%. There have been reported 8 hour lines for motorists to refuel.
In Kenya, an argument between oil companies and the government has resulted in reduced imports and a fuel crunch. Fuel rationing is reported at many patrol stations.
In Nigeria, costs for importing fuel has gone up over 100%. The lack of jet fuel has resulted in flight cancellations, leaving passengers stranded.
In Sierra Leone, major protests started as a results of increasing prices of fuel. 21 civilians and 6 police officers were reported to be killed.
Americas
In the US, civilians have to pay 54% higher rates for heating.
In Ecuador, rising fuel prices is leading to protests from workers and students, as well as by transportation union.
In Peru, protests resulted in the death of 8 individuals, and dozens injured.