Europe for example heavily relied on Russian imports of gas as a main source of energy from 1965-2005. This means that Europe is dependant on other countries to have sourced the gas. This shows that if anything was to happen between Russia and Europe, and the supply of gas was to cease, Europe would not be energy secure and therefore cause disruption to the global economy. Moreover the USA is a country that heavily relies on oil as its main source of energy and consumes around 20 million barrels a day, which equates to 25% of the worlds energy. But now the USA have consumed vast amounts of oil from their own oil reservoirs they are becoming more and more reliant on imports from other countries that are within the OPEC cartel from the middle-east.
During the 1990’s a ‘dash for gas’ occurred. Gas was much cheaper and cleaner (helping meet emission targets) than coal and nuclear power. Gas produced less SO2 and NOX and due to the combined cycle gas turbine, using gas was half the price of coal and 30% less than nuclear (capital costs).
In order to tackle the crisis of energy insecurity the USA, UK and many other countries have invested vast amounts of resources into researching new technology that can be used and alternate methods of energy production with the majority being renewable. But there are methods like nuclear power which can provide huge amounts of energy and produce lower emissions than oil production, but have other downsides, for example producing radioactive waste which has to be specially contained and then buried, which can consume other resources and in some cases rely on other countries to do so. This would mean that the countries that use this type of energy production like the USA can invest into bioethanol/ biodiesel which will reduce their dependency on imported oil and therefore better their energy security.
Currently the UK is trying to create a low-carbon economy as the UK’s oil and gas reserves are in decline. Therefore to try and rectify the problem of being energy insecure the UK are encouraging investment in oil and gas production working with key producer countries, furthermore promoting the more reliable supply of energy; deepening bilateral relationships, improving the operation of markets internationally and within the EU, encouraging new routes through new pipelines and grid interconnection. Moreover the UK on an economical level are trying to enhance price stability, this is achieved by increasing transparency, sharing analysis of energy and financial markets and finally working with the G20, IEA, OPEC and the international energy forum. To reinforce this energy plan the UK are reducing demand by promoting low-carbon growth internationally – encouraging energy efficiency policies and the adoption of low-carbon technologies.
The only problem with diversifying energy production is that the viable alternatives can cause other problems that can have an impact socially and environmentally while still improving the economical situation. For example off/on-shore wind farms can potentially provide vast amounts of wind energy, but their construction can cause damage to surrounding ecosystems/habitats, as well as being an ‘eye-saw’.
There is also a lot of pressure to develop ‘domestic’ resources. (ANWR) Artic national wildlife refuge has been an ongoing political controversy in the United States since 1977. ANWR comprises of 77,000km2 of the northern Alaskan coast. It is the largest protected wilderness in the United States and was created by congress under the Alaska national interest of lands conservation act. Section 1002 of the act deferred a decision on the management of oil and gas exploration and development of 1,500,000 acres in the coastal plain. The main debate on whether to drill in the 1002 area of ANWR rests on the amount of economically recoverable oil, as it relates to world oil markets.
