The Energy Crisis

An energy crisis is when anything that is required by plants that create energy is threatened and more of it is needed but we can't get more. The main energy source that causes an energy crisis to happen is oil. Oil is used in a lot of things that we use today similar to factories, machines, cars, trains, and more. With that being said, the demand people have for oil is extremely high. If the supply and demand ratio of any product gets thrown off too quickly, then a crisis is waiting to happen. The supply and demand ratio that a product has is very rarely thrown off by the consumers. Usually, the government has to do something drastic like implement  tax hikes. stricter regulations, or union strikes in the industry that the product is based out of. The most common thing that a government does to affect the energy industry is to implement a tax hike. A tax hike is devastating to the energy industry because they now have to adjust the price of the product itself, the way that they make the product, and the cost of transportation. Major changes like these don't happen overnight. Until the energy industry changes its prices to accommodate the new tax hike, they are losing money. If a company is losing a lot of money in a small period of time, they will most likely panic and either stop production of their product or raise the price of their product significantly to cover the cost of the lost time adjusting the prices. Oil is widely used throughout the world, which means that the demand for oil is extremely high. If the amount of oil even for an instance drops below the average supply and demand ratio, a crisis will most likely occur. If companies and people have to pay more for oil, then the price for everything that uses oil will rise too. The energy crisis causes a domino effect to occur in the global economy.. It is estimated that 1.2 billion people in the world don't have access to an energy source at all. This can be considered bad for humans but good for the atmosphere because the smaller the amount of people who have access to energy, the smaller the amount of pollution from factories and plants. For people, this figure is bad because energy usage makes life easier and can potentially save the lives of people. Not enough energy is being produced for the growing population. If this continues, two potentially devastating things will most likely occur. The first is if the population of the world gets to a point where people can't produce enough oil to sustain themselves, then supply and demand will go into effect and significantly raise the price of oil so only the rich people can afford to use it. Two, the supply of oil could run out on Earth, which would cause humans to have to find another energy alternative to it. Electricity is cheaper and healthier to use than oil, but most companies and people will probably continue to use oil until it runs out.

Sources:

http://www.conserve-energy-future.com/causes-and-solutions-to-the-global-energy-crisis.php

http://www.global-economic-symposium.org/knowledgebase/the-global-environment/the-energy-crisis-and-climate-change/proposals/the-energy-crisis-and-climate-change

https://www.epa.gov/aboutepa/epas-position-energy-crisis