Energy and Human Development Essay Example

significantly from 20? per gallon to $2 per gallon, which starkly contrasts with the 10? per gallon tax on petroleum-extracted illuminants.[3]

This required the development of an enhanced system that would enable oil companies to increase their oil production and overall activity (Al-Mulali & Che Normee, 2013).

686-698. The tax on alcohol led to a decline in its use as a light source compared to petroleum. Moreover, the decrease in oil prices in 1861 caused many drilling operations to cease, and other factors such as water flooding also forced some out. Consequently, there was a decrease in oil production starting from 1862, despite an increase in demand.

During the U.S. Civil War, there was a rise in oil prices similar to what was seen in the 1970s. This increase was due to a decrease in supply and an increase in demand. As a result of this surge in energy and oil demand after the war, there was a significant improvement in the human development index. In GCC countries, there has been a noticeable growth in the middle and lower class populations, which has had an impact on the price of oil and energy. Additionally, rapid population growth in modern society has led to scarcity and higher prices for energy resources. Grant (2012) also observed similar cycles of boom and bust during the following decade when stable low prices became common as large fields were developed across Pennsylvania.

Oil production and management in New York and Pennsylvania had increased by five times compared to 1870 by 1890. In addition, other states also saw growth in oil production, contributing to 38% of the total in GCC. Russia emerged as a major

oil producer with production levels comparable to other states in GCC. The recession of 1890-91 and various factors resulted in a decrease in the price of oil to 56? per barrel by 1892[5].

4: Grant R (2012) Contemporary Strategy Analysis: Concepts, techniques, applications, 8th Ed, Blackwell
5: Al-Mulali, U.

Normee (2013) discusses the interplay between energy consumption, pollution, and economic development in 16 emerging countries. This is explored in a study published in the Journal of Economic Studies.

The article "Strategic management of oil: Growing demand and stagnant supply" emphasizes the importance of Gulf Cooperation Council (GCC) nations in shaping the global energy market and the Middle East region. These countries heavily depend on oil production and marketing as a means to enhance their economic standing.

The GCC countries, including Saudi Arabia, Kuwait, UAE, Qatar, Bahrain, and Oman, primarily export their products to the US and Europe. However, they face competition from OPEC in accessing the global market in the United States. The Global Cooperation Council was established in 1981 with a specific emphasis on the energy and oil economy of the Gulf of Asia. It generates significant wealth from the global energy sector. These member countries are globally recognized as leading oil producers (Ramady, 2012).

The Global Cooperation Council has significantly impacted the Energy and petroleum trade in the Gulf of Asia. It successfully manages the energy economy in the region, leading to high levels of oil production and consumption both locally and internationally. The Gulf country, with its abundant energy reserves, gains global recognition for its economic success. Consequently, it forms alliances and partnerships with external trade communities like the EU. According to IMF estimates, there is impressive growth

in the global economy in 2004 and 2005, experiencing an average annual increase of 4.7% in actual gross world product.

According to Johnson, Whittington, and Scholes (2013), the world oil consumption increased by 5mb/d during this period, which is approximately a 3% annual rise. This increase in demand can be directly attributed to the continuous increase in oil prices. Unlike previous historical oil shocks that were often tied to major geopolitical events, there was no sustained production growth after 2005. However, as mentioned by Lynch (2012), the ongoing instabilities in regions like Nigeria and Iraq did influence these dynamics. It is important to note that the impact of this surge in human development index varied among different countries within the energy sector.

The distribution of energy resources in Africa is difficult due to a large population and rising poverty. Arab nations also experience disparities in energy consumption among their local populations, unlike Russia or China. On the other hand, the United States, Europe, and Japan have a greater need for energy resources due to increased social activities and industrialization. The table below displays the rates of energy consumption. Grant (2012) states that the oil surges between 2007-2008 were particularly noteworthy following World War II⁷.

The United States went through a severe recession in December 2007, primarily caused by the financial crisis rather than oil supply disruptions. Geopolitical events have contributed to the disruption of oil supplies due to increased demand and decreased production from mature oilfields (Grant R's book "Contemporary Strategy Analysis: Concepts, techniques, applications, 8th Ed, Blackwell").

Adoption of modern renewable energy

In certain regions such as Africa, new oil reservoirs are being discovered. This has led some countries

to become self-sufficient in oil and energy production and reduce their reliance on imports. Nigeria, for example, previously dependent on GCC and OPEC for oil and energy imports, has found larger reservoirs within its own borders after depleting its resources. These newly discovered reservoirs can meet the country's demand for several years.

Due to Nigeria's disengagement from international trade with the GCC, other countries have also transitioned to utilizing solar energy as their main source. This shift poses a substantial risk to the demand for oil and gas energy because solar power is not only cost-effective but also environmentally friendly.

Global environmental organizations strongly promote the utilization of solar energy and show their support for solar projects. These initiatives are especially common in Africa and Europe, regions that heavily rely on GCC products. The connection between importing oil and energy procedures to terrorism has been established due to the smuggling of dangerous items alongside these goods. Trading nations have identified instances of illicit transportation involving substances such as drugs together with oil, gas, and energy.

These practices endanger the continuation of international trade among the associate countries if not controlled. The illegal items that enter the trading countries pose a threat to both their population and economy. Any country that discovers illegal goods associated with the GCC states entering their territory may terminate their trade association with the GCC union in order to protect their citizens.

Bibliography

• Baumeister, C., ; Peersman, G. (2009) ‘Time-Varying Effects of Oil Supply Shocks on the US Economy working paper, Ghent University.
• Edelstein, P. and Kilian, L. (2009) ‘How Sensitive are Consumer Expenditures to Retail Energy Prices?’ Journal of Monetary Economics, 56: 766-779.
• Grant R (2012) Contemporary

Strategy Analysis: Concepts, techniques, applications, 8th Ed, Blackwell

Energy consumption, pollution, and economic development in 16 emerging countries are studied in the Journal of Economic Studies. The article is published in volume 40, issue 5, and spans pages 686-698.