Global Energy Demand and Crisis

Why Energy Strategy is Important

Current global environmental background

The application of fossil fuels as energy sources is coupled with environmental havoc on the authenticity and beauty of the natural environment. The hydrocarbons are the chief sources of greenhouse gases such as carbon 1V oxide, sulphur dioxide and methane, which eventually cause global warming. Combusting coal accounts for 44% of carbon emissions. Oil and gas account for the 41% of carbon emissions into the environment. Besides global warming, burning fossil fuels emits particulates and chemicals which arouse cancer, nerve and brain damage, respiratory disorders and birth defects. These negative impacts of burning fossil fuels on the ecological and human wellbeing components necessitate man to diversify the energy resources; and motivate the utilization of renewable sources (Ikeda, and Ooka, 2016).

Current global energy situation

Energy has been a driving force for unprecedented economic prosperity, and globalisation especially during the 21st century. Throughout this century, various forms of energy such as traditional biomass, oil, coal and natural gas were harnessed. With the advent of a combination of issues revolving on the environment, security of supply and resource constrain; an inspiration to invent alternative energy sources in the recent decades was commissioned (Jenkins et al., 2016). Energy is not only instrumental in running industries but is also a life blood of our daily endeavours. Black coal had been serving the world with energy before oil and gas came to supplement the provision of energy. Man still is dependent on these fossil sources. The continued demand for these fossils energy has significantly increased more than the ability of nature to replenish their sources; which consequently has induced a disproportionate imbalance between demand and supply; and which consequently has bred forth energy crisis.

The crisis is embedded on the rapid increment in global demographic patterns; which increases the demand per head. High levels of affluence, overreliance on non-renewable energy sources and reckless consumption patterns have also contributed into the basketry of energy crisis. The hydrocarbons (coal and gas) comprises 85% of the total energy supply with only 15% supply coming from renewable sources including solar, hydro, geothermal, nuclear, wind, wave and biogas(Emodi, 2016). Besides being ecological friendly; the renewable sources have not been intensely exploited due to technological barriers, political compulsions and high initial costs. The developed nations have been too slow in the pursuit to transfer technologies to emerging economies based on political and financial premises. The world distribution of energy consumption has demonstrated that the consumption patterns of energy in developed nations are higher than developing countries. The discrepancies in energy production and consumption patterns geographically also form the basis of energy crisis. For instance, Middle East and Russia constitute the biggest fossil fuel reserves but are not the biggest consumers. Other factors including political instability in oil producing countries, and inadequate diversity of resources are behind the global energy crisis today (Bilgin, 2015).

Man also needs to grasp fundamental moral essences and uphold sustainable development doctrines and take into consideration the future posterity. By so doing, man is reminded to harness the energy sources with consideration of environmental needs and future generations at heart. Man ought to comprehend that fossil fuel energy is limited and finite; and therefore scramble for the same can incite unprecedented destructions to life on earth; both flora and fauna (Ahluwalia, Gupta, and Stern, 2016).

Where are we now?

Energy strategy context

UK has one of the best wave and wind power in the Entire Europe; with much of her population characterised by offshore engineering skills, long traditions of building, construction and innovation. Renewable energy is a rapidly blossoming global sector, which seeks to offer significant quantities of clean, low carbon energy. Approximately, it is estimated that by 2050 the globe will need to drastically lower overreliance on fossil fuels if indeed the malicious climate change is to be averted (Walker et al., 2014). In UK, renewable energy technologies and new methodologies for converting, disseminating, utilising and saving energy have contributed in the securing an economically credible energy system. The country is fully aware that the intrigues of renewable constitute lifelong solutions for the challenge of climate change. UK’s progress on renewable energy and bio-fuels has been increasing over the years. Despite being delayed transitions seeking to harness power from renewable energy; there has been a positive effort towards the same. Environmental awareness and the initiation of environmental activism have contributed towards making the country opt for greener energy sources (Walker et al., 2014).

UK has currently accommodated not only renewable sources of energy but also an energy saving culture so as to ensure the realisation of sustainable development in the energy sector and the ecological component at large. The crucial aim of the government is to power and heat present homes without necessarily relying on coal, gas and oil. Renewable energy technologies have fitted into the current centralised system in forms of large wind farms, biomass and energy from waste plants. The following diagram shows the utilization of renewable sources of energy in UK by the year 2022.

Amidst the looming shortages and ecological impacts induced by energy sector, the concept of energy strategy ascends. Energy conservation and management is crucial to many organizations which seek to minimize on operation costs and maximize in profits. Contemporary trends have demonstrated that because of improved energy efficiency and availability of affordable thermal resources, oil consumption patterns have significantly reduced. The international organizations dealing with energy have continually advocated for sustainable practices and measures while handling energy sources. The international community is appealed to advise her constituent citizens to equitably use her energy resources sustainably (Mathiesen et al., 2015).

The international organizations have equally advocated for green building which utilizes natural lighting from the sun. Additionally; there is environmental awareness which the Brudtland Commission deemed instrumental in the creation of awareness about environmental challenges facing the world. The awareness is crucial in disseminating information on the available issues, while providing the necessary skills, knowledge and attitudes to tackle them.

Energy strategy of the UK

Improving the energy efficiency is a key strategic objective of the UK government; which is also an avenue for decarbonising the country’ and maintain safe energy supplies while increasing the businesses productivity. In the end of the year 2011, the Carbon Plan enactment as eloquent and clear in cutting short the greenhouse gas emissions by 80% by the year 2050 (Allouhi et al., 2015). The government has significantly moved forth with this mandate through initiatives such as the Green Deal; which outlines the actions for the realization of 2050 vision. The country is characterized by vast opportunities to optimise her energy usage both domestically and in industries, reduce bills and deliver a sustainable society. This can be enacted if individuals can lower their demands by turning off energy-using devices that are not utilized, buying energy-efficient devices, or launching energy efficient practices at home. Business enterprises are also advised to take a similar course; for the long-term realization of the Carbon Plan (Moliner, Lázaro, and Suelves, 2016).

The government is also committed to support the finance market through publishing a framework for financing energy efficiency for the public sector; announcing research projects with ENORKS to comprehend the process, benefits and costs of financed energy efficiency projects and initiating a assessment of compatibility of energy efficiency investment with the public domain budgeting strategy and initiating the REFIT initiatives which intends to wholly facilitate the public utilization of the ESCO market and electricity Demand Reduction Project. The government also maintains that through socially cost-efficient investment in energy efficiency; she can save approximately 196TWh in the year 2020 which is an equivalent of 22power stations. Additionally, the government is dedicated to a sustainable and safe energy system by reducing the energy consumption pattern. The country administration also through legislations has banned trading in products that significantly impact the ecological and human health domains. This is to ensure sound environmental protection against overconsumption patterns and degradation (Wang, and Moriarty, 2017).

PESTLE Analysis for Energy Sector in UK

Energy sector is one of the most lucrative investments which ascertains good income if effective PESTEL analysis is done. Energy resources are crucial for human and industrial consumers and their demand has impacted the home and global market in various ways. The daily demand for the energy resources are daily subscribed in various political, economic, social, technological, environmental and legal activities. UK is committed to ensure that her consumption of renewable sources reaches 15% by the year 2020 as demonstrated below; and this can be achieved while looking at the country’s PESTLE analysis of energy sector

Political factors express the political effect on the realm of energy. In UK, there are plenty government policies governing the sector. Most of the government interventions are geared towards the production of greener energy sources amidst the menace of environmental degradation caused by coal and other non-renewable sources (Uyarra, and Gee, 2013). Economic factors impacts the circulation of oil and gas in the country. The country’s relatively strong currency makes it more expensive to export a lot of energy on global markets. Amidst inflation; demand for high wages for employees results into overshoot of commodity prices. Besides, increased income tends to boost the demands for energy products.

Social factors encompass aspects of demographic patterns, religion, culture, migration, income migration, and ideological perspectives on energy. In UK, there is no mores or culture inhibiting oil and gas products. Each part of the country perceives the oil and gas industry as an avenue for future prosperity and elevated living standards. Technological factors are represented by technologies, unique techniques and methods which affect energy organizations internally. Technologies inspire oil and gas firms to create new products and invent better practices. Based on technology, marketing and advertising costs have greatly reduced (Butler, Parkhill, and Pidgeon, 2013). Environmental and legal factors are built on the constructs of Entrepreneurs seeking to invest in the oil and gas industry without compromising on the quality of the environmental factors which affect every oil production or distribution processes. Geographical location, climate, land form, rock structure and flora and fauna affect oil and gas industry activities. Besides, they need to be aware of the legal constraints represented by norms, laws, regulations and constitution requirements regulations of local and international standards and platform which manages oil and gas industry activities (Butler, Parkhill, and Pidgeon, 2013).

References

Ahluwalia, M.S., Gupta, H. and Stern, N.H., 2016. A more sustainable energy strategy for India (No. 328). Working Paper.

Allouhi, A., El Fouih, Y., Kousksou, T., Jamil, A., Zeraouli, Y. and Mourad, Y., 2015. Energy consumption and efficiency in buildings: current status and future trends. Journal of Cleaner production, 109, pp.118-130.

Bilgin, M., 2015. Turkey’s energy strategy: Synchronizing geopolitics and foreign policy with energy security. Insight Turkey, 17(2), pp.67-81.

Butler, C., Parkhill, K. and Pidgeon, N., 2013. Deliberating Energy System Transistions in the UK. London: UKERC.

Ikeda, S. and Ooka, R., 2016. A new optimization strategy for the operating schedule of energy systems under uncertainty of renewable energy sources and demand changes. Energy and Buildings, 125, pp.75-85.

Jenkins, K., McCauley, D., Heffron, R., Stephan, H. and Rehner, R., 2016. Energy justice: a conceptual review. Energy Research & Social Science, 11, pp.174-182.

Mathiesen, B.V., Lund, H., Connolly, D., Wenzel, H., Østergaard, P.A., Moller, B., Nielsen, S., Ridjan, I., Karnøe, P., Sperling, K. and Hvelplund, F.K., 2015. Smart Energy Systems for coherent 100% renewable energy and transport solutions. Applied Energy, 145, pp.139-154.

Moliner, R., Lázaro, M.J. and Suelves, I., 2016. Analysis of the strategies for bridging the gap towards the Hydrogen Economy. International journal of hydrogen energy, 41(43), pp.19500-19508.

Uyarra, E. and Gee, S., 2013. Transforming urban waste into sustainable material and energy usage: the case of Greater Manchester (UK). Journal of cleaner production, 50, pp.101-110.

Walker, R.V., Beck, M.B., Hall, J.W., Dawson, R.J. and Heidrich, O., 2014. The energy-water-food nexus: Strategic analysis of technologies for transforming the urban metabolism. Journal of environmental management, 141, pp.104-115.

Wang, S.J. and Moriarty, P., 2017. Strategies for household energy conservation. Energy Procedia, 105, pp.2996-3002.

Watson, J., Scrase, I. and Stapleton, L., 2010. Transforming the UK Energy System: Policies for the 2020 Renewables Target and Beyond.