Showing posts with label global economy. Show all posts
Showing posts with label global economy. Show all posts

Tuesday, July 8, 2014

Energy Security Definition - What does it mean?


I just looked in a book, the Guide to Energy Management and I didn't find anything on Energy Security…  How do you manage Energy Security?  What does it mean?

Before you start scouring the web for various definitions on Energy Security, I will give you mine.  Energy Security means that when I turn on the light switch the light comes on and when I go to the gas station to fill up the car, the gas station has gas.  Also, the gas for the car and the electricity for the light will be available as long as I want.  Energy Security means energy is available and the energy supply is seemingly endless.  

Imagine if the lights went out and you didn’t know when or if they would come back on, so you take the car to the gas station to fill up to leave town but no gas, stuck no lights or gas…  What else isn’t working?  The economy!  Life would suck fast.  So we need to ensure our energy security now and in the future.

I worked on Air Force Space Command’s (AFSPC) Staff as an Energy Program Manager; AFSPC had 7 major installations and 134 locations throughout the world.  The facilities use a lot of energy so we implemented many energy saving programs.  However saving energy is not the same as energy security.  Energy Security is more than conserving energy.

A few years after working for AFSPC,  I was hired to help startup and run the Department of States’ first airbase.  The base was located in Baghdad, Iraq and our operations would start after the US Military withdrew for Iraq at the end of 2011.  We didn’t know what would happen, civil war? Terrorism?  So we had to prepare for the worst.  Our airbase was determined to set its own energy security criteria…  We converted all of our generators to run on Jet Fuel and increased our storage capability.  Our fuel was dual purpose; it could run the base and still have plenty of fuel to fly normal missions.  The dual use of jet fuel allowed us to be prepared for a “fall of Saigon” type of scenario; kind of like Iraq today.  This approach also allowed us to use a local supplier of jet fuel. We had plenty of fuel on hand for any issue and locals had incentive to supply us.  Our planning worked out well and we were tested multiple times in 2012 as many supply convoys were delayed or turned around.

Energy Security is having energy available and the energy supply is seemingly endless.  Leaders, planners and the community should determine how long endless is. 

Next time we will discuss ways to increase energy security in today’s world.  Then we will discuss the cost of energy security, paying more might be worth it. 

Thoughts?  

Endless… the sun gives us heat and it causes weather patterns and winds, all of which we can harness for energy.  I think that is an endless supply of energy since without the sun, it is the end.


Michael James Smyth

Monday, June 9, 2014

Global Risks 2014

Global Risks 2014

The world is big… or is it?  Do global environmental, economic, social, political or technological risks effect you? Where does your company, your government or you expend capital to reduce risks?  

Preparing to teach my Emergency Management class, I read the World Economic Form’s, Global Risks 2014.  The report analyzed the risks facing the world and rank orders the more likely events.  The report is an eye opener!!

The Global Economic Form mapped 31 global risks, they categorized the risks into the following categories:  economic, environmental, geopolitical, societal and technological. The following top 10 Global Risks are from the report:

No.      Global Risk  
1          Fiscal crises in key economies    
2          Structurally high unemployment/underemployment    
3          Water crises
4          Severe income disparity    
5          Failure of climate change mitigation and adaptation   
6          Greater incidence of extreme weather events (e.g. floods, storms, fires)     
7          Global governance failure            
8          Food crises  
9          Failure of a major financial mechanism/institution      
10        Profound political and social instability  

What do you think?  I think the report is spot on.  Why?  Because we have already seen the disruption a fiscal crisis can cause to the world. We have not fully recovered from the 2008 crisis. Europe’s economy is still in trouble, high unemployment, debt and possible deflation. Deflation is bad if you have debt, because now you owe more than you borrowed! 

For example, Hitler capitalized on the weak economy of Germany to take power.  Shortly after world war one, in the early 1920’s the Nazi party and Hitler were on a rise, however after the Nazis had a few setbacks then Germany’s economy improved causing Hitler and the Nazi’s influence to wane. 1929! The Great Depression, kind of like the recession of 2008, money dried up, there was very little lending and some financial institutions failed.  Hitler and the Nazi’s were able to capitalize on this and take power.  Could this happen again?  Look at Al Qaeda, they are capitalizing on structurally high unemployment, income disparity and governance failure (related to fiscal issues).

The Global Risks 2014 Report closes with the following:

Ultimately, leaders in both the public and private sectors need to be able to ask themselves concrete questions. The following checklist may provide guidance:
1.    What are the top five risks facing the organization and what does its risk appetite suggest with respect to managing them?
2.    What are the exposed assets, and how vulnerable are they?
3.    What options can address these risks relative to what is being done currently?
4.    What support is needed, and from whom?
Despite recent progress, many leaders are still unable to answer these questions confidently.

We, the Global inhabitants are at high risk.  Climate change is real, the causes for it you decide.  The sea is rising, droughts are staying around a long time… water issues.  The economies need to become more secure by reducing debt and practicing sound monetary policies… another bubble is out there, governments should not allow a bursting bubble drag them down.

Interdependences, remember a large disaster will cause economic issues, which will in turn lead to unemployment, income disparity and conflict.   A government  or private industry should plan for disaster with economic and security, mitigation procedures and response capability.  In other words, money should be set aside to keep workers paid and security should be flexible enough to move in after a disaster. 

These problems are scalable, they effect the planet to the individual.  So take a look at Global Risks 2014.  See what you can do for your country, state, city, business and home. 

Internet Reading: Global Risks Report 2014

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Michael James Smyth