Energy Crisis

Definition

Energy Crisis is any systemic event where the supply of energy resources to an economy is severely restricted in relation to prior levels and/or expectations. The result may include significant reduction of economic activity but may also have broader social and welfare implications.

A crisis may relate to one or more energy sources used at a certain time and place, most typically:

• Electricity via the Grid
• Fossil Fuels

Causes

Energy crises may result from:

• Localized shortage due to Energy System deficiencies or volatile supply versus demand
• Geopolitical Risk (wars, boycots etc.)
• Market Manipulation