The energy crisis often has effects on the rest of the economy, with many recessions being caused by an energy crisis in some form. In particular, the production costs of electricity rise, which raises manufacturing costs. For the consumer, the price of gasoline (petrol) and diesel for cars and other vehicles rises, leading to reduced consumer confidence and spending, higher transportation costs and general price rising.
Some experts argue that the world is heading towards a global energy crisis due to a decline in the availability of cheap oil and recommend a decreasing dependency on fossil fuel. This has led to increasing interest in alternate power/fuel research such as fuel cell technology, hydrogen fuel, biomethanol, biodiesel, Karrick process, solar energy, tidal energy and wind energy.
To date, only hydroelectricity and nuclear power have been significant alternatives to fossil fuel, with big ecological problems (residues and water spending). Hydrogen gas is currently produced at a net energy loss from natural gas, which is also experiencing declining production in North America and elsewhere. When not produced from natural gas, hydrogen still needs another source of energy to create it, also at a loss during the process. This has led to hydrogen being regarded as a ‘carrier’ of energy rather than a ‘source’.
There have been alarming predictions by groups such as the Club of Rome that the world would run out of oil in the late 20th century. Although technology has made oil extraction more efficient, the world is struggling to provide oil by using increasingly costly and less productive methods such as deep sea drilling and so on.
SAJID AFRIDI
Karachi
