Oil Crisis

Heating by oil ?

Human population rise as well as human needs. The one of impact from it, is rising the price of fuel. Why?. The reason is simple. A lot of occupants in this planet prefer to have their own transportation and it goes up the supply of fuel. But the queerer phenomena happened recently. The price of oil has fallen. BBC reported that in 2010- mid 2014, the price of oil was stable on $ 110 per barrel. But in June 2014, the oil price has reached bellow $ 50 per barrel.

Economic theory explain that when the price  (Px) increasing will have consequence to the rising  of supply(Qs) and decreasing of demand(Qd) as the curve below explain:

index.1

Resource: http://www.tushar-mehta.com/excel/charts/supply_and_demand/

But why Russia as the biggest supplier of oil , 70 %  of its income  had shaken Russian Economic?. Russia should be happy. Because decreasing oil which means more demand.  But In the fact,  Russia has lost  $ 2 billion of its revenue The worst is while World Bank warn Russia that it will shirk  their GDP( Global Domestic Brut) 0.7 % in 2015. At the same time, Russia’s Central Bank is fighting to forecast with the crisis. On December 15, the country reached from 10.5 percent to 17 percent . But this rate is even further worst when Russian’ currency rubber fallen down.

Yes, it is so difficult to understand this queer situation. But We should back in 2000 while the oil price were rising as result of global demand especially in China. It reached $ 100 per barrel between 2011-2014.  In other hand, energy companies used this occasion to profit their companies such as example The United Companies had been started using techniques such as franking and horizontal drilling to extract oil from shale formations in North Dakota and Texas. In additional, Alberta’s gooey oil sands were heating by Canadians Companies with steam that extracts usable crude. Consequence is a boom in “tight oil” production.

To summary, I want to emphasize that how the world ties to oil. Big country such as Russia, it even couldn’t go away from the shackle of this problem. Nowadays, what we can do is to find the solution for it. We should use the green fuel or in other hand reduce the consumption of oil fuel by stop using our own transportation. Certainly, it will be difficult but we don’t have chance for future. It is our fault and we should solve it.

Reference:

http://www.bbc.com/news/business-29643612

http://www.vox.com/2014/12/16/7401705/oil-prices-falling

occupant (n)    : inhabitant

queer (adj)       :strange

shake (v)          :jiggle

shirk (v)           : avoid

further  (v)       : more distant in space than something else of the same kind

occasion (n)     :opportunity

fracking(n)       : the process of injecting liquid at high pressure into subterranean rocks, boreholes, etc., so as to force open existing fissures and extract oil or gas

drill (v)             :boring tool

extract (v)        : remove or take out

shale(n)           :flakes

heat (v)            :warm up

steam (n)         :water vapor

crude(n)           : raw

Is Eu really in Crisis ?

I have been living in Slovak Republic since last February when energy was often discussed by my lectures. First time, I never realize it is important issue as it is not my home land interest. We never talk about this at school, even thought there is often blackout in our home especially during weekend but we don’t worry a lot as European in other hand, I think not a lot of young European especially young Slovak who understand this issue.  It is only old people interest. As example, in student dormitory you will find after 8 am or 9 am, electricity still on which already sunrise outside and bright. Sometimes you will find also, student who come to class but they still charge their computer in their room. Let’s have a look electric consumption in the world.

        

energy1energy 2

                  We can see that Canada is in the top of energy consumption, followed by United States. But if we see carefully, We should account France, United Kingdom, Germany, Spain and Italy as one position because of European Union. So, Energy consumption in EU is 9,286 without other EU countries which mean twice Canada.  And we can see that EU is the one of biggest world energy consumption in the world.

               We can see and hear from newspaper or tv hat  the long-term prospect of energy policy in EU is focused in ensuring reliable, inexpensive and environmentally which is great choice in EU for future. Unfortunately, this is long-term prospect works only for some member states which show off and  renewable green energy such as The Netherland, Scandinavian countries, Germany, Italy and Austria. In other hand,  some countries in EU it looks that it is not their interest.  For example, Slovakia which still promote renewable energy in 2011 and Malta just reached 0,86 percent of renewable energy in 2010.

                Conclusion, We should appreciate European Union which has been promoting renewable energy and reduce energy consumption but it is not enough without self-awareness from other member  states. 

Reference:

Weidenfeland, W., Wessel, W. (1997).  Europea from A to Z Guide to European integration, Institute Für Europäische    Politik.

http://shrinkthatfootprint.com/average-household-electricity-consumption

http://www.mepa.org.mt/outlook13-article7

http://www.irena.org/REmaps/countryprofiles/Europe/Slovakia.pdf

 

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