The energy sector constitutes a group of companies significant in the exploitation,
storage, production, transportation, and distribution of energy. Engström, Lindeskog, Olin,
Hassler, and Smith (2017) show that the energy sector has realized tremendous changes over the
years. Notably, scientific\technological progress, social civilization, and ecological factors drive
the changes. Several factors mark such changes. Patterns, trends, and transformations in the
energy sector indicate the perceived changes within the sector (Bauer, Rose, Fujimori, van-
Vuuren, Weyant, Wise, Muratori, 2018).
Firstly, the sector has realized changes ranging from transformations from nonrenewable
sources like wood to, coal then oil and gas to renewable energies like wind and solar. Secondly,
the trend;-ranging from types, production, and utilization methods, is remarkable. Notably,
global development has changed from simple to technological production, high to low carbon
development, and from one-time utilization to multiple ones. Thirdly, patterns of energy
development indicate the changes. According to Engström, Lindeskog, Olin, Hassler, and Smith
(2017), advancements in social civilization and science and technology trigger patterns of
coordinated developments between “conventional” and “nonconventional” energy, “oil” and
“natural” gas besides “fossil” and “non-fossil” energy.
Ideally, human activities involving energy use are the largest source of greenhouse gas
emissions in the world. Moreover, energy and climate changes are the significant global
challenges of the 21st Century. Risks for human health, the ecosystem, and the economy are
challenges of the 21st Century linked to energy and climate changes. In many instances, energy
consumptions involve the combustion of fossil fuels for human activities such as electric power
generation, cooking, and transportation. Through such processes, greenhouse gases are released
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into the atmosphere. Once in the atmosphere, the greenhouse gas would cause climate changes.
Extreme weather conditions, flooding, rising sea levels, drought, and storms are some of the
effects associated with weather changes (Engström, Lindeskog, Olin, Hassler, and Smith, 2017),
One of the challenges of the 21st Century is linked to the issues of energy production and
climate. Yatim, Lin, Lam, and Choy (2017) insinuate that combustion of fossil fuels for energy
production releases pollutants that result in climate change. Moreover, climate change would
result in biophysical and ecological factors harmful to human health. Climate change can affect
human health, either directly or indirectly. For instance, an increase in heatwave resulting in high
frequency and heat intensity is likely to harm human health through deaths and other serious
illnesses. Consequently, vector-borne infectious diseases that affect human beings, such as
malaria, are linked to the presence of climatic conditions that favor the breeding of mosquitoes.
Karim, Karim, Islam, Muhammad-Sukki, Nurul, and Muhtazaruddin (2019) identify food
security as one of the challenges of the current Century. Energy production and use emit
greenhouse gases into the atmosphere. Notably, the emission of uncontrolled greenhouse gases
into the atmosphere results in the growth of their atmospheric concentrations that causes severe
climate changes; one of the issues associated with food insecurity. In the end, the perceived
climate change would affect food security, utilization, and access, resulting in an economic crisis
brought by food insecurity.
Karim, Karim, Islam, Muhammad-Sukki, Nurul, and Muhtazaruddin (2019) support such
views, arguing that greenhouse gases in the air trigger a negative effect on agriculture, one of the
backbones of global economies. A severe climate extreme is likely to derail the food supply.
Consequently, there are high chances that an increase in heat that reduces water availability and
OVERVIEW OF THE GLOBAL ENERGY SECTOR 4
quantity through global warming would interfere with food production, affecting the global
Over the years, the geopolitics of energy has mostly been associated with nonrenewable
energy such as oil and gas. However, the trend has since changed. With the rise in renewable
energy, the chances of geopolitics and global energy would shift to the most dominant power.
Admittedly, renewable energy could shape world politics in numerous ways (Engström,
Lindeskog, Olin, Hassler, and Smith, 2017),
Firstly, the rise in renewable energies would create politics, leading to centralizing the
cartels around materials viewed as critical to renewable energy technologies. For instance, cartels
would try to influence the consumption of rare earth elements commonly used in clean energy
technologies such as wind and solar powers. Secondly, in a world shifting to cleaner energy,
technology, and capital for investment might trigger the politics of cooperation or rivalry. For
instance, the transfer of technology might create tension between developed and developing
nations. Thirdly, access to sustainable energy would result in sustainable developments in
various parts of the world. The geopolitical impacts of such achievements would grant lasting
solutions to conflict and instability that arise from the inequitable distribution of resources.
Lastly, some possibilities reducing gas and demand for oil would create political instabilities,
especially among nations whose revenues are affected by an increase in renewable energies.
The energy demand has experienced an inevitable transition. Notably, changes from
nonrenewable to renewable energies have triggered changes in need of various forms of energy.
For instance, p-primitive societies had a high demand for wood as energy sources (Rehman,
Rauf, Ahmad, Abbas, and Zhang, 2019). However, the discovery of coal and its efficiency
changed the demand for firewood. Moreover, the need for coal would later be replaced with
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discovering fossil fuels that seemed reliable and efficient in many ways. Even though fossil fuels
dominated the world, calling for higher demand, the invention of renewable energies brought
tremendous changes in the energy sector. Since then, the market has shifted to green energy use
due to its reliability and efficiency. Wind and solar panels are an example of a renewable energy
source with high demand than other energy sources.
Whereas no rigorous thinker may wish away the traditional energies such as oil, gas,
carbon, and rock, their fate in the decarbonizing world is indeed uncertain. Arguably, the
adoption of cheap- and clean energy places all fossil fuels in balance. As far as efficiency is
concerned, producers of traditional fuels would have to rethink other new ways of increasing the
demand for their products, making them appealing to the customers. On the other hand, studies
show that renewable energy such as energy from wind, sun, biomass, fusion, and fission stand a
better chance of dominating the energy sector due to their efficiency and reliability. Unlike
traditional energies, renewable energies are believed to be clean and efficient to consumers
(Horváthova and Dobbins, 2019). Even their production processes are complex, availing them to
the consumers at an affordable cost would make them dominate the energy sector.
Taking control of energy use is the best way to conserve energy. In many instances,
changing patterns of energy use would save energy. Retrofitting houses, allowing them to use
passive solar energy for heating, conserves energy. Consequently, developing lighting and
heating household appliances that consume less energy solves the challenges of energy
consumption. Exciting efficiency in the transport industries, especially cars and trucks, ensures
efficiency and conservation of fuels.
In sum, energy has one of the most critical sectors in the world. Notably, energy plays a
critical role in the world economy. The need for efficiency and safety has triggered various
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transitions in the energy sector. As discussed, the sector transformed from primitive methods to
adopting the most efficient and clean energies that suit human demands. Moreover, such changes
are linked to the looming geopolitics triggered by the changes in the question's economic effects.
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Bauer, N., Rose, S. K., Fujimori, S., van Vuuren, D., P., Weyant, J., Wise, M., Muratori, M.
(2018). Global energy sector emission reductions and bioenergy use: Overview of the
bioenergy demand phase of the EMF-33 model comparison. Climatic Change, 1-16.
Engström, K., Lindeskog, M., Olin, S., Hassler, J., & Smith, B. (2017). Impacts of climate
mitigation strategies in the energy sector on global land use and carbon balance. Earth
System Dynamics, 8(3), 773-799.
Horváthová, B., & Dobbins, M. (2019). Organised interests in the energy sector: A comparative
study of the influence of interest groups in czechia and hungary. Politics and
Governance, 7(1), 139-151.
Karim, M. E., Karim, R., Islam, M. T., Muhammad-Sukki, F., Nurul, A. B., & Muhtazaruddin,
M. N. (2019). Renewable energy for sustainable growth and development: An evaluation
of law and policy of Bangladesh. Sustainability, 11(20), 5774.
Rehman, A., Rauf, A., Ahmad, M., Abbas, A. C., & Zhang, D. (2019). The effect of carbon
dioxide emission and the consumption of electrical energy, fossil fuel energy, and
renewable energy, on economic performance: Evidence from Pakistan. Environmental
Science and Pollution Research International, 26(21), 21760-21773.
Yatim, P., Lin, N. S., Lam, H. L., & Choy, E. A. (2017). Overview of the key risks in the
pioneering stage of the malaysian biomass industry. Clean Technologies and
Environmental Policy, 19(7), 1825-1839.