Our civilization has evolved based on an abundant supply of cheap oil
The transportation industry and agricultural fertilizers heavily depend on oil
Oil demand is projected to rise to 121 million barrels per day by 2025 (International EnergyOutlook, EIA, 2004)
The Energy Crisis is often overlooked based on the following misconceptions:
1. “Higher prices will bring in larger investments, which will lead to more production”
2. “Rise in prices will lower consumption”
“Oil shale and tar sands will replace conventional oil”
4. Fudging of reported reserves by oil companies and countries for political/economic reasons
5. “Many previous ‘crisis’ predictions p
this one will too.
The day-to-day market prices of oil reflect many factors like the current stocks, shipments,economic situation, speculative investment, etc. and not so much the size of reserves of oil
We have now reached a stage in the exploitation of the earth where trying harder to produce moreoil can have only limited results
Oil consumption on a short-term basis does not depend on the price of oil, as is the case for othergoods. There is a large time lag before consumers shift to alternatives or reduce demand
In fact, some experts believe that a rise in oil prices
demand on a short term basis. E.g Oiland natural gas demand growth rates in China have been in the range of 7-15% per year since 1999,despite the tripling of oil prices since then.
Energy crisis is generally misconstrude as lack of resources rather it is the disruption in thedistrubution of supply of the resources. energy crisis refers to the blockades and as a consequence multipleraise in the fuel price all over the world in petroleum. the genesis of energy crisis is deeply laid in thehistory of Arab-Israel conflict. OPEC was constituted with a purpose of regularising supply and havinguniform price. In 1973 when 6days war brokeout between Israel and Arab as a retaliatory measure OPECraised the prise from 1.5$/barrel to 7$/barrel which generated shock waves in the economy. for the firsttime it was felt that every country must have the concept of energy security. In 1979 Iranian revolution ledto another severe crisis and there was a 3 fold price hike. In 1980 it settled around 23$/barrel. The third oilcrisis came during Invasion of Iraq over kuwait. The petroleum prises are roaring high 73$/barrel many of the developing countries India, china recieved backlash in the economies. Many of S.E.Asian countries