Energy Crisis

ENERGY CRISIS

Nature of the Problem:

The problem with energy hunts mankind like never before. Our dependence on petroleum products can be recounted several decades ago but the realization that the same commodity that was widely used as tool in the mobilization of modern technology will be the same tool that is affecting and hurting our present economy. Prices of all commodities from basic to luxury including services are now being dictated by the prices of petroleum products. It is because almost everything we use in our daily lives is being fueled by oil, and without the energy derived from petroleum products, needless to say that the world’s economy will be paralyzed.

Establish the Existence of the Problem:

Causes of our energy problem can be contributed to the following:

a.) Dependence on petroleum products as source of energy
b.) Main sources on petroleum products are concentrated in the Middle East
c.) Lack of foresight on the future need to develop alternative fuel such as bio fuel & compressed natural gas (CNG).

Explain the Extent of the Problem:

The effects of our energy crisis can be felt from the smallest fragment to the upper strata of our society. From the laborers to their employers, the farmers and their consumers, the ordinary citizens and their political leaders from the poorest to the most developed countries look at the prices of petroleum products as a gauge in determining the uptrend and downtrend of market stocks on every trading floor. The law of supply and demand on petroleum products is vital because the world demands it yet the Arab countries can control it and wealthy countries can hoard it.

Explain its Effects and Why it Needs to be Solved:

Major effects of energy crisis can be credited mainly on the following:

1.) It is being used as a determining factor in prices of all commodities and services. When it rises, everything follows but when it goes down, prices of other goods normally don’t.
2.) It affects the economic status of the working group and the consumers in general.
3.) It sends a negative signal on the investors who are particularly backing not only on the security but on the economic and political stability of the country.

4.) Insufficient supply will slow down production and basic services will suffer.

5.) Lack of energy will paralyze our economy.


Reasons Why it Needs To Be Solved

1.) Like any other problem, energy crisis is one major problem that must be resolved because of its global effect.
2.) It must be resolved, because most of the conveniences of our daily living depends on it.
3.) It must be resolved because the growth of our economy lies on the supply of energy.