Global Alliance for Peace and Prosperity Global Energy

Global Home

Home

Global Environment

Global Security

Global Healthcare

Global Economy

Global Education

Contact

About Us

E

nergy is indispensable and fundamental to global economic growth. A functioning global healthcare, global food supply, global transport and global trade depends to a high degree on an adequate energy supply. Energy security is one of the major challenges that the global community has to face and to solve as fast as possible. Besides the threat of a global pandemic and global terrorism, a global energy crisis is the main risk that threatens the future of civilization.

The main energy source of our time is still crude oil. However, the burning of fossil fuels is the main cause of the global climate change with its already obvious catastrophic effects. So we have to heavily tax crude oil to finance research and development of more eco-friendly energy sources.

The global community was caught being unprepared when the price of standard crude oil shot up to over € 60 a barrel on the 2nd of January 2008. The price for a barrel, which equals 159 litres, has recently risen to € 90. About 4 years ago the price was standing at € 16 a barrel. This is due to the fact that the global consumption of petroleum has been increasing at a faster rate than the increase in global production. In

2006 the demand exceeded the world refinery capacity for the first time in history. Fortunately, recent discoveries of huge new offshore oil fields in the Arctic Circle and Brasil may put off some pressure on the price for a barrel of crude oil. Also the global recession will continue to put down the price of crude oil. However, we may still face a global supply crunch around 2012. This is due to the fact that there is an inadequate investment by oil companies in raising output. International oil companies have incentives to return dividends to shareholders rather than invest them into increasing oil production. Resource nationalism is another main cause that limits global development of production capacities. Many oil-

exporting nations exclude international oil companies from helping to increase oil production capacities. As a result we see the price for crude oil going up in the long run. We estimate the price for a barrel of oil will be driven up to about € 160 in the next 3 to 4 years. This will increase efforts to end the current age of fossil fuels and create a new era of environmental-friendly energy sources. We support the introduction of a new global carbon tax to finance research and development of new nonpolluting energy sources.

Looking back fossil fuels did have some major impacts on the economic well-being of society, because they facilitated the Green Revolution that transformed agriculture around the world in the last century. Fossil fuels provided the energy not only for the industry and transportation, but also for agriculture in the form of fertilizers (natural gas), pesticides (oil) and hydrocarbon fueled irrigation. Just the world grain production increased by 250% in the 20th century.

Today the global society has to face the fact that sooner or later fossil fuels will be replaced as the main energy source on our planet. Prices for crude oil will again go up in the future. This is also due to the fact that a heavy tax will be implemented on fossil fuels to pay off some of the damage that is created by climate change. It will become impossible to keep up neither political nor economical fossil fuels as reliable energy source. Any economy that will still rely on fossil fuels in the near future will commit an economic, environmental and social suicide.

The global energy crisis challenges the world of today and affects the stability of the old world order of nations. The prosperity and the peace of global society is at risk without a reliable, eco-friendly and affordable energy supply. A global platform will be established to support scientific development of renewable energy. However, it will take time and lots of money to get innovative energy resources like nuclear fusion, nano and hydrogen energy market-ready. In the meantime solar and wind energy have to play a more important factor in the energy sector. Moreover, energy efficiency has to be improved by technological advances in factories, homes, and transportation, thus reducing the demand of fossil energy and increasing the demand of renewable energy. Atomic energy will also play an important part.

Even when we take all these necessary steps it is still possible that the world is heading towards an unprecedentedly large and potentially devastating global energy crisis. Almost half of the global population live in India and China. Both countries enjoy a fast growing economy and population. People in these countries are just starting to consume and to adopt more energy intensive lifestyles with devastating effects on the global environment.

The world's population continues to grow at a quarter of a million people per day, increasing the consumption of energy and food. There is a chance that the global community not only runs out of available energy but also out of food. At present a small part of the world's population consumes a large part of its resources. Thus, the Western world needs to set an example and to simplify its lifestyle. We all live on this planet and it's the duty of every global citizen to share an equal way of life that satisfies the basic needs and that ensures a healthy environment. A balance between population and resources has to be found to guarantee the survival of mankind on our home planet earth. Only a strong world government has the will, power and strenght to confront these challenges and to offer a solution that will bring peace and prosperity to all of us.

Global Energy

GLOBAL ALLIANCE FOR PEACE AND PROSPERITY

WE NEED TO END OUR DEPENDENCE ON CRUDE OIL TO REBALANCE MOTHER NATURE!