Control of Energy
The control of energy supplies is a sensitive issue and most countries are properly concerned with their energy security. Japan, for example, relies almost completely on imported supplies which makes it extremely vulnerable to supply shocks. The U.S. for its part buys and imports a lot of crude oil and then stockpiles them for its own strategic reserves. The U.S. is actually one of the biggest producers of crude oil in the world but keeps importing for its daily needs while stockpiling its domestic output. In an ideal situation, a country should produce its own energy source or otherwise have an entirely reliable supplier. An energy source should be near its point of consumption to minimize supply disruptions.
Air pollution
An example that illustrates vulnerability is the one that happened during the 1970s where prices of oil increased very suddenly, resulting in long lines at the gas stations. It has happened before and can happen again. Oil and other energy sources have been used in the past as a political weapon by some countries. Some major oil-producing countries have refused to increase production despite higher energy demand. This has resulted in a classic demand-and-supply situation that spiked gas prices recently. Other factors that cause sudden increases in price of oil is excessive speculation by some hedge funds. Even Russia has used its vast natural gas reserves as a political weapon by refusing to supply its neighbor Ukraine until some issues are cleared up. Ukraine is a big country that has a huge energy requirement among the former Soviet socialist republics.
Countries who make serious efforts at weaning themselves from oil will be in great shape in the long run. Oil is a finite and non-renewable resource and the sooner alternative energy sources are developed, the better for everyone concerned. Solar power is the most promising of renewable energy. It is not only clean but also limitless. The only hindrance to fully harnessing solar power is cost of the solar panels and the labor costs of installing them in offices and homes. But incentives are now offered so people will be encouraged to source their electricity needs from solar power. Wind power, wave power and tidal power are still considered in their infancy and need big sums spent in research and development to become viable commercially.
The site above is dedicated to a scientific approach of solving the global warming and climate change problems. It has a lot of photographic perspectives on the effects of global warming and shows a “before and after” comparison of glacial retreat in many places.
Ironically, OPEC no longer controls the pricing of oil in world markets. That role has now gone to speculators and hedge funds in the financial capitals of New York, London and Tokyo. The cartel of OPEC has slid into irrelevance due to its perceived lying, cheating, and manipulation. Even its members do not agree among themselves on how much to produce and quotas are very often not followed. Since its creation in 1960, OPEC was rarely united and its objective of making oil prices high enough to enrich oil barons but cheap enough to make the world addicted to oil is often not achieved. The credibility problem of OPEC is on how much is its actual reserve capacity is rather than its actual production. Because of this, Wall Street speculators are now running the world energy market based on hunch and rumors rather than on actual supply and demand. For the oil cartel, excessively high oil prices is counterproductive and inimical to its own interests since this will push the world towards alternative energy (solar and wind), alternative sources (Canada), conservation measures, and new technologies (methane from coal, hydrogen from water, etc.). A new world order has emerged: OPEC needs the OECD and not the other way around. For a very interesting discussion, please visit the site below:
http://www.macleans.ca/article.jsp?content=20050418_103878_103878