May 18, 2011

CHINA - facing its worst energy crisis in history

CHINA, one of the fast rising country in Asia and the manufacturing capital of the world is currently suffering for what may seem the worst energy crunch ever recorded in their history. Fox news reported how the China Daily newspaper summarized China's current situation: “Power shortages that gripped many parts of the country in recent months could herald the worst energy crunch in years amid growing concerns that economic growth may suffer.”  This professed energy crisis is inferred to be because of the siginificant growth in power demand as China's industry has been rapidly growing year after year.

To aid the said demand, China has strategized in setting up additional sources of energy by substantially investing in what has become a disisive Hydroelectric power source due to the infamous "three georges dam".  Apparently, China is in distress from a massive drought so the said source could not go well to solve the crisis and infact made the situation of China worst.  The Hydroelectric source's dependence on water to produce energy has now been an added burden to the country especially in central China.  Reportedly, This situation has brought more or less 400,000 people in Hube alone to experience drinking water shortage and over 870,000 hectares of agricultural crops to suffer.

The official Xinhua news agency reported: “Demand is expected to exceed supply by 40 gigawatts this year if the drought continues, rising to 50 gigawatts in 2012.”

The said shortage in power has already crashed some manufacturing plants forcing to cut off production due to power outages.  In effect, Chinese government deferred all diesel exports and at the same time secure more oil stock from abroad to secure supplies as affected factories has now switched to using diesel powered generator sets. 

With China's current situation, all other countries around the world are likely to be affected too in terms of consumer goods and gas prices roll up.

Read whole story from FOX news


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