The Fragile Nature of Energy Security
The past several years have unquestionably been a period of rapid learning.
This is a period of time that has forced both individuals and businesses to quickly adapt to uncertain and changing circumstances. Existing layers of security have been disrupted and have caused the need to be agile and respond to them accordingly.
Perhaps one of the most obvious disruptions that have taken place is in the energy sector. Particularly, the record-high cost of oil and gas.
Energy Security as a Concept
Energy security may come across as a new concept to some, but it’s a pervasive force that has a direct effect on our own daily lives.
As defined by the IEA (International Energy Agency), energy security is defined as the “uninterrupted availability of energy sources at an affordable price.”
In the past several months, we have seen crude oil prices reach an all-time high of over $120 per barrel. This has had an extraordinary downstream effect on the prices of gasoline energy, which, in turn, affects every cost from mining for minerals to transporting produce.
The price of gasoline and oil differs vastly from region to region, with some areas being hit harder than others. But it’s fair to say at this point that our energy security has suffered a serious breach.
Other Factors That Impact Energy Security
The increasing cost of oil and gas showcases our fragile dependence on daily energy usage.
But the rising price of such materials is not the only factor capable of impacting our energy security in both the short and long term.
The aforementioned IEA has proposed legislation that mandates the immediate implementation of green energy practices across the entire globe. With the objective defined as reducing humankind’s global carbon footprint, express measures have been proposed to ensure that oil and gas are phased out — quickly.
While the spirit of this legislation is rooted in an altruistic cause, its rapid implementation (not unlike the rapid increase of oil prices) stands to levy more damage than it intends.
Countless developing countries have a much greater need for inexpensive oil and gas to uplift people from poverty. African countries in particular are seated upon an abundant wellspring of oil and natural gas.
The IEA’s proposed “Net Zero by 2050” plan is an ambitious venture that instantly has unintentionally halted the vast economic energy opportunities in the African continent as well as jeopardized countless existing jobs throughout the industry.
It’s hard to believe that our energy security can be so fragile, but it is an unfortunate reality for many.
While the spirit of this legislation is rooted in an altruistic cause, its rapid implementation (not unlike the rapid increase of oil prices) stands to levy more damage than it intends.
Countless developing countries have a much greater need for inexpensive oil and gas to uplift people from poverty. African countries in particular are seated upon an abundant wellspring of oil and natural gas.
The IEA’s proposed “Net Zero by 2050” plan is an ambitious venture that instantly has unintentionally halted the vast economic energy opportunities in the African continent as well as jeopardized countless existing jobs throughout the industry.
It’s hard to believe that our energy security can be so fragile, but it is an unfortunate reality for many.
What Can Be Done?
I believe that there is a strong case to be made for more thoughtful legislation through collaboration with local countries and economies.
Prosperity in our lifetime is not simply defined by economic wealth; we absolutely need to consider the long-term health of our planet.
However, for countries that (combined) generate less than 3% of the global population’s total carbon emissions, it is difficult for the ends to justify the means.
African countries, in particular, stand to benefit significantly from continued developments in the oil and gas sector, simultaneously uplifting African people from poverty as well as helping the country to take a greater leadership role in more philanthropic endeavors for green energy over time.
In my upcoming book, A Just Transition, I explore this topic in great detail.
I have a great amount of hope and optimism for the future. There is plenty that we can do to ensure a greater sense of energy security at both the individual as well as the global level.