3. Energy Crisis

Case Study 1: Global Energy Crisis and Geopolitical Tensions

Principles of Energy Crisis:

• Resource Scarcity and Economic Development (Malthus, 1798) – Limited availability of energy resources affects growth.
• Geopolitical Influence on Energy Markets (O'Sullivan, 2013) – Political conflicts shape global energy supply.
• Sustainable Energy Transition (UNEP, 1992–Present) – Strategies for reducing dependence on fossil fuels.

Theorists Behind the Principles:

• Thomas Malthus (1798) – Resource scarcity and population growth.
• Meghan O'Sullivan (2013) – Geopolitical energy security.
• UNEP (1992–Present) – Sustainable energy governance.

Models/Theories/Laws:

• Energy Security Model – Strategies for ensuring stable energy supply.
• Renewable Energy Transition Framework – Shift from fossil fuels to clean energy.
• Systems Analysis Approach – Evaluating energy crisis trends through multiple indicators.

Recent Data:

• Global Energy Demand: Projected to rise by 2.5% in 2024, driven by industrial growth.
• Geopolitical Impact: Russia-Ukraine war and Middle East tensions affecting oil and gas supply.
• Renewable Energy Expansion: Over 560 GW of clean energy capacity added globally in 2023.

Spatial Variation:

• Europe: High energy vulnerability due to reliance on Russian gas.
• Asia: Moderate impact with diversified energy sources.

Temporal Variation:

• Historical Trends: Energy crises observed since 1970s oil shocks.
• Future Projections: Expected acceleration of renewable energy investments.

Source:

• World Energy Outlook 2024

Insight:

Global energy crisis trends validate geopolitical energy security models, emphasizing the need for diversified energy sources.

Case Study 2: Energy Price Volatility and Economic Consequences

Principles of Energy Crisis:

• Resource Scarcity and Economic Development (Malthus, 1798) – Limited availability of energy resources affects growth.
• Geopolitical Influence on Energy Markets (O'Sullivan, 2013) – Political conflicts shape global energy supply.
• Sustainable Energy Transition (UNEP, 1992–Present) – Strategies for reducing dependence on fossil fuels.

Theorists Behind the Principles:

• Thomas Malthus (1798) – Resource scarcity and population growth.
• Meghan O'Sullivan (2013) – Geopolitical energy security.
• UNEP (1992–Present) – Sustainable energy governance.

Models/Theories/Laws:

• Energy Price Volatility Model – Impact of supply disruptions on global markets.
• Economic Growth and Energy Dependency Framework – Relationship between energy costs and GDP.
• Systems Analysis Approach – Evaluating energy crisis trends through multiple indicators.

Recent Data:

• Oil and Gas Prices: Projected surplus in LNG supply leading to price fluctuations.
• Economic Impact: High energy costs contributing to inflation and slowing growth.
• Policy Responses: Governments implementing subsidies and price controls to stabilize markets.

Spatial Variation:

• Developed Nations: Moderate energy price fluctuations due to policy interventions.
• Emerging Markets: High vulnerability to price shocks.

Temporal Variation:

• Historical Trends: Energy price volatility observed since 2008 financial crisis.
• Future Projections: Expected stabilization with increased renewable adoption.

Source:

• Global Energy Crisis – IEA

Insight:

Energy price volatility validates economic dependency models, emphasizing the role of policy interventions in stabilizing markets.