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UNIT
1
Introduction to the energy business
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13
Issues
Gas in Crisis?
Which countries does your country import its gas from? Read this newspaper article and discuss
the questions.
The world is changing fast. There is an energy crisis
on the horizon for Europe. If we take natural gas
as an example it would seem at first glance
that countries such as Norway, Britain and the
Netherlands have sufficient gas reserves to supply
Europe for some time to come. However, this is
misleading; most of these reserves will be used up
over the next ten to twenty years. Even if more
deposits are found in the North Sea or the Atlantic
Ocean the problem will still not be solved. The
continent must turn to Russia where there are
huge quantities of gas underground. This country
is in the happy position of being the gas giant of
the world.
Other nations are also approaching Moscow to
cover their energy requirements. The economies of
countries such as China and India are expanding
dramatically and they are going to need massive
amounts of energy, which includes gas. Will there
be enough of this commodity to satisfy the needs
of Asia and Europe? This is by no means certain,
and the consequence could be a shortage of gas
imports, which could lead to power cuts in some
European countries in the future.
There is one other source of gas – LNG,
liquefied natural gas. This is transported by ship
from such places as the Arabian Peninsula.
Nevertheless, it is questionable if these supplies
can ever be a realistic alternative to gas which is
imported by pipeline; the simple fact is that the
volumes shipped would never meet demand.
People are therefore right to be worried.
Political leaders and companies must tackle this
issue; we need a secure and reliable supply of gas
for the long term. This inevitably means that
wholesale prices will soar, but this is still better
than the nightmare scenario of freezing in our
homes or having no power for our industry.
over
to
you
Is there really a gas crisis? What do you think?
What about oil and coal? Do you think there will be enough reserves for the future?
How do you think China will develop its economy and how will it power its industry?
How can your country ensure gas supplies?
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OUTPUT