3. Energy Shortages
The last few weeks have seen what appears to be a substantial increase in electricity and liquid fuels shortages across many parts of the world. The common theme behind these shortages is higher prices for liquid fuels and hot, dry weather which is reducing hydro generated power and increasing the demand for air conditioning. Brent oil prices that have now been above $100 a barrel for the last six months are placing a strain on many poorer nations that can no longer afford to import enough oil to run power stations. Theft of electrical power is endemic in much of the underdeveloped world leaving many power companies without the revenue to pay for increasingly expensive fuel.

In many countries, a paradox is developing in which widespread, lengthy blackouts are in some cases saving fuel for power stations, but at the same time increasing the demand for diesel fuel to keep essential utilities, factories and computerized offices running.

Last week several new or worsening situations were reported. In Mongolia, which until recently had only a diesel crisis due to the ban on exports by its only neighbors, Russia and China, is now facing a gasoline crisis. Power cuts in Tanzania, where 70 percent of the power comes from hydro, are up to 12 hours a day for an indefinite period. Japan has now issued an official order that large power users in the service areas of the Tokyo and Tohoku power companies must cut their usage by 15 percent. Japanese car manufactures are stopping production on Thursday and Friday. Nissan says it will shift production to the weekend when more power is available.

Jordan’s electric company which was dependent on cheap natural gas from Egypt ran into troubles when the pipeline was blown up for the third time and the company was forced to turn to expensive imported oil. Botswana and Argentina in the southern hemisphere are facing shortages of electricity and natural gas respectively as temperatures fall. Nigeria is dealing with growing kerosene shortages and longer blackouts. In Nigeria the electric company is increasing prices to cope with revenue shortfalls from lower production.

Energy shortages in Pakistan continue without end. There are near-daily protests against the blackouts, and a CNG shortage has cut bus service in many regions. Gasoline is in short supply. Last week, Tehran, in an effort to supplant US influence in Pakistan, offered to sell the country electricity. The offer came at the same time Iran’s electric company reported that it was about to close 15 thermal power plants because of a fuel shortage.

While some of these shortages will be short-lived, others are systemic stemming from the rising energy consumption by a growing world running into the limits to growth.