Case Study Energy Security Issues California

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  • Case Study: Energy Security Issues: California
    • Why is the USA in energy crisis?
      • Consumption: 2007 USA consumed 23.8% of worlds oil
      • Reliance on Imports: Between 1960-2003 USA's reliance in imported gas and oil increased by 18% to 58%
      • Price: in 2006 price of oil rose from $20 to $60 per barrel. In 2008 price was $140
      • Reserves of fossil fuels are beginning to run out: should last between 45-60 more years
      • Global sources of energy are unevenly distributed: most concentrated in politically unstable parts of the world
      • Demand for energy is increasing: the growth of economies e.g. China and India - means competition for resources
    • Why is California suffering an Energy crisis?
      • The US energy market is privatized so the market is driven by the desire to make most profit
      • Between June 2000-  May 2001 California experienced a series of blackouts die to various factors
        • Weather: 2000 was the 3rd year of drought so less surplus energy due to lack of HEP. Summer was very hot so increased demand for air-cons
        • Insufficient generating capacity: Strong anti-pollution laws in 1970s meant energy companies unwilling to build power stations
        • Limited capacity of power lines to import more electricity
        • Eron: Supply and demand to ensure energy prices remained high enough when supply was good
    • Facts
      • Largest state in USA
      • Lowest per capita energy consumption rate in USA due to mild weather
      • 16% of USA oil reserves, but only 3% gas reserves
      • Produces 5% of USA total electricity
      • More motor vehicles than any other state

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