The World Is on the Verge of an Energy Crisis’, Assess This Statement and Its Implications

The world is on the verge of an energy crisis’, Assess this statement and its implications

Imagine this scenario: One morning you wake up too late because your alarm clock didn’t ring. As usually you go to collect your daily newspaper but it’s missing. You are wondering whether the radiator works or not becasue it is freezing. You want to make yourself a cup of coffee but the kettle doesn’t make your watter boil.”That’s funny – the gas stove won’t turn on” you think to yourself. No eggs and bacon that morning. Displeased, you are going to take a shower before leaving for work. You are standing under an algid water stream becoming more and more angry. “That’s going too far” you think and want to make a complaint to your caretaker.You can’t use your phone. Although living on the 23rd floor you have to use the stairs. Finaly you left the building. Everything is going to be all right now, as you are in your reliable car. That’s what YOU think. But your car won’t start today. Nor it will on any other day.

Nowadays it is unimaginable to exist without energy. Nor it is possible to do business without it. Not only huge energy intensive production plants or facilities are dependent on electricity and heating. Energy also is a crucial input for service, technology, and knowledge-based businesses.

As power still is gained from oil primarily (37%), the availability of this resource is essential for the good health of the global markets (Johnson, 2003).

In the latest history there were two periods in which business had to suffer from global energy restrictions.

The first one was in 1973 during the Arab-Israeli War when arabic oil producers declared an embargo against the United States and the Netherlands and decided to reduce oil production. This situation led to an energy crisis, in a dimension never experienced before.

The biggest problems appeared in the United States, Western Europe and Japan, as these regions were reliant on supplies from...