The processes of globalization and the unification of production potentials at the regional and world level from the middle of the 20th to the beginning of the 21st century influenced the intensity and evenness of the development of production and distribution of benefits, as well as related economic phenomena. An obvious consequence of these processes was a series of global supply and demand shocks in various areas of the economy. Thus, structural and systemic changes in world economic relations associated with the production of goods and their transportation could not but cause a fundamental shift in the processes of production, delivery, distribution, and consumption of energy as an essential resource.
Therefore, the underlying cause of the countries of the world facing an energy crisis is the shortcomings of capitalism, which is unable to overcome contradictions in its development. Such a definition, to a certain extent, reflected the objective reality at the concrete historical level. The energy crisis can be defined as a form of structural economic crisis. The main reason and defining feature of the energy crisis is the disproportion in the structure of the world economy. Some fragmentation in terminology compels an attempt to systematize and combine the existing fragments into a term that most accurately reflects the phenomenon of the energy crisis.
The main reason behind why the United States was unable to implement effective policies to deal with a crisis is the lack of direction. The nation was not able to determine its projected path in regards to energy, where it seeks to shift towards renewables without proper technology to back it up. In addition, the United States strives for global economic domination and growth, which requires a reliable source of energy. The latter cannot be fulfilled by renewable alternatives due to their conditionality. According to the article, the U.S. electric power grid is being stretched to the brink because it is highly vulnerable to potential disruptions (Burnett par. 2). The reason is that the nation closed down the most secure and reliable sources of power, such as coal and nuclear.
Since electricity cannot be reliably and inexpensively stored, it should be generated in accordance with the demand. The energy needs to be stored in its raw forms, such as coal or oil. Alternative energy and natural gas need to be the primary sources of energy during the default state of the country, but it is also important to have backup energy reserves for emergencies or sudden energy demand spikes. The latter can be ensured by the coal industry, which is more reliable than other sources.
The current green energy policies should not completely ban the coal mining sector by shutting down the companies, but rather it needs to be used in places where energy infrastructure is not developed enough. It is not entirely correct to equate the crisis in the energy sector with the general shortage of resources. Some degrees of deficit or excess of volumes in the market for coal, oil, or gas, like any other economic good, appear to be a natural phenomenon inherent in any system. Applying already existing approaches in the study of economic crises, it can be concluded that the cause of an energy crisis can be not only a shortage but also an excess of energy resources. A disproportion, primarily a discrepancy between supply and demand, of course, accompanies any structural crisis.
Work Cited
Burnett, Sterling. “Climate Policies Are Creating an Energy Crisis.” Climate Change Weekly, 2018, Web.