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Energy Cost

Energy costs are dictated by many external factors besides merely the cost of extracting fuel. Fossil fuels almost always have to be refined or changed from their crude form into a usable form. This requires transportation to refineries and then to refueling stations or power plants which adds the most significant cost to the price of energy.

Demand is another huge factor determining energy costs. If demand is high and supply is low, which is what happened during the 1973 oil crisis when OPEC stopped importing oil to western countries that supported Israel during the Yom Kippur War, the price of energy skyrockets with only the highest bidders able to receive energy. A similar event happened in 1979 during the Iranian revolution which ceased oil imports for a period of time.

To overcome high energy costs fuels and methods for extracting energy have to be diversified. It would be very difficult to stop the supply of photons coming from the sun making solar power one of the most reliable forms of energy. There cannot be an embargo or sanctions placed on the wind either making it an excellent choice as well. Another huge advantage these forms of energy have is that they do not need to be transported by trucks and unwieldy supertankers through dangerous war zones and terrain.

 

 

 

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