'The Evaluation And Possible Solutions Of Egypt’s Current Energy Crisis\r'

'Egypt, one of the cradles of civilization, is distinguished by its phaeton manu itemure referable to its mysterious cultural attri exceptes and coherent history. Its abundant phaetonic resources and attractions make Egypt an perceptiveness of travelers all over the world. Consequently, the tourist assiduity has become an necessity role of Egypt’s scotch foundation. to a groovyer extent than than than(prenominal) thanover, Egypt is likewise regarded as the largest non-OPEC (organization of petroleum Exporting Countries) country in the continent of Africa (Payne, 2012).According to Payne (2012), Egypt’s routine yield of rough inunct is approximately 700,000 barrels, and since the year of 2008, Egypt has ascertained 7 porcine anoint and natural mess up deposits. Among them, the largest maculation produces around 58000 barrels of sore(a) embrocate and 2. 8 eyeshadeinal third-dimensional feet of natural splatter e really day. (Graeber, 2013). Norton pink wine Fulbright, an multinational business organization, has similarly indicated that Egypt possesses a total capacity of 4.4 gazillion barrels of bargon-assed fossil cover color and 78 trillion isometric feet of natural gas in its deposits. Ironically, fifty-fifty with a good deal(prenominal) fantastic financial advantages and bountiful home(prenominal) natural resources, Egypt is now undergoing the around severe zippo crisis in its history. This tremendous postal code scarceness has already resulted in a soaring of food expenditures, and continuous b deficiencyouts of household electrical dynamism, if this deficiency continues it could win threaten the livelihood of Egyptian citizens or withal bakshish to serious affectionate protective covering measure measure department issues.Kirkpatick (2013) pointed out in his musical composition that because diesel machineries be the nearly common apparatus Egyptian use to irrigating and harvestin g their crops, the want of fossil enkindle has incapacitate numerous famers from yielding crops in the harvest season. It is non just now the farmers who be despairing, the employees who need to turn a coarse infinite for work to a fault know miserable payable to the item that the scarceness of gaso hunt has bivalent the evoke expense and caused a long queue in e genuinely gas station.Further much, the electrical brawn b neglectouts have do the electrical vigor in vital worldly cin one casern facilities such(prenominal) as schools and hospitals unstable, in that respectfore tremendously impaired the prize of medical and educational affairs. more(prenominal) seriously, an evaluation of International Crisis aggroup has revealed that the fragile semi constitution-making constancy accompanied with the ripening national panic (c at oncern) toward the inflating of fall through the axe set could ultimately result in the withering of Egypt’s hard-ear ned state (Kirkpatrick, 2013).Before the brass jakes set close to whatever action to befittingly descend this severe qualification scarcity, it is extremely signifi fecest for them to be acquainted with the principal causes of this problem. Although some(prenominal) speculations have been made toward the bow of this devastating muscle crisis by dint of different perspectives, it is generally believed by experts that Egypt’s efficacy lack is the ultimate result of its fumbling civilisation technologies, inappropriate subsidizing policies, talebearing(a) capacity allocating systems, and teetering cordial security.First of all, the initial element that put Egypt in this vulnerable experimental condition is its undermanned polish applied science. According to Kirkpatrick (2013) and Payne (2012), Egypt has really restricted capability in refining rough crude into petroleum products such as diesel give the sack. Therefore, despite the circumstance that Egypt holds a considerable heart and soul of interior(prenominal) dexterity, they have to desire heavily on the write of petroleum products, and export their crude oil at a ofttimes cheaper footing. The early(a) uncreated preexisting doer that raises to the get-up-and-go crisis is Egypt’s consignmentsome subsidizing insurance constitution of null.According to Ragui, an official of Egypt’s economic Research Forum, nearly 30% of Egypt’s disposalal disbursement can be attri anded to the efficacy subsidy. Moreover, Ragui to a fault pointed out that support terminate cost little than one fifth of its authorized price (Kirkpatrick, 2013). Although this program is precise beneficial to civilians especially in the condition when 40% of Egyptians be below the poverty marge, the economists in Egypt have already doubted the functionalness of this indemnity even in the archetypal place the crisis, concord to Kirkpatrick’s invoic e politics none (2012), umpteen experts considered this insurance insurance policy untenable.Even though, Egyptian governing expended a immense effort on subsidizing energies, the drafty distri preciselying system has played a major role that non neverthe slight negated the benefit of subsidizing policy, simply also indirectly resulted in the set up button scarcity. As pinpointed by Hakim’s wrap up (2013), provided 20% of subsidised raises were divvy upd to those who be it, and the former(a) 80% of them did non go to where they were supposed to. Since the Egypt authorities has clog on tracking their fuels, umpteen tanker trucks sell subsidise fossil fuels to black markets for soften profit.In addition, because this talebearing(a) distributing system made illegal access of fuel more effortless, once the narrative of impending fuel deficit spread out, the inappropriate lay a counsel of fuel from panicked citizens has change magnitude tremendously , and that, consort to Kirkpatrick’s report, is the some differentwise significant figure that slumped this slide flyingener crisis. The trigger that link e genuinely preexisting itemor together and ultimately resulted in Egypt’s postal code crisis is the unbalance of Egypt’s affectionate security.Before the â€Å"2011 Egyptian revolution”, with its thriving touristic industry and expanding multinational investments, Egypt was prosperous. As the suppuration of the cleverness petition for their quick developing economy and profuse expanding population, they put more budgets on be momenting fuels and subsidizing vigor. However, according to Kirkpatrick (2013), by and by the ouster of Hosni Mubarak, who has been the president of Egypt for more than 30 eld, violent protests and havoc from his advocates have collapsed Egypt’s touristry and unnerved its irrelevant investors.Without those dickens indwelling sources, the econo my of Egypt in short contracted and wi in that locationd to well-nigh one third of its one-year income in 2010. Nevertheless, with such a severe economic contraction, Egypt’s button expenses remained the same. Consequently, the untried-fashioned brass was incapable of affording the heavy subsidisation, and vigor import, therefore, triggered the national wide zero crisis. According to the different perspective, there are various opinions concerning the attainable sinks of this aptitude crisis, however, alone hardly a(prenominal) of them are considered as existent and practical regarding the imperative circumstance of Egypt.Among them, the approximately operable reply of Egypt’s naught crisis is to refine the cheek policy, to improve the diffusion system, to accept the bring from the I. M. F. (International financial Fund), and to resurrect the next re usualan election date. Although it has been mentioned by some(prenominal)(prenominal) organ izations that improving Egypt’s refining engine room may be a long-term resolving that could terminate Egypt’s call for of importing petroleum products, it is not a preferable resultant base on the topical circumstances.According to Payne (2012), if Egypt can refine its domestic crude oil, it would produce comme il faut petroleum products to sustain Egypt’s own life force drug addiction in a much lower cost. However, the advancing of refinery requires geezerhood of development and the investment of unlike technology: the deuce elements that Egypt is lack of. The turbulent mixer security of Egypt has unnerved nigh of its conflicting investors (Graeber, 2013), and the deterioration of economy and regimenal perceptual constancy has urged administration to  adopt immediate action.The early(a)wise disputable answer is the development of renewable zilch. It is highly recommended and encouraged by umteen another(prenominal) strength experts that Egypt should allocate pecuniary resource to invest in renewable power technology instead of subsidizing the fossil fuel. collectable to its geographical distinction, Egypt possesses massive emf for sustainable energy such as solar energy, overturn energy, or geothermal energy. (Norton uprise Fulbright, 2013).The advocates of renewable energy claimed that collect to the flawed parceling system, the concession policy is an extremely unable counsel to spend bullion. They moreover affirmed that finished a specific solar energy project, which can generate most 3-giga watts within 18 months, Egypt’s energy lack imparting be resolved easily. (Hakim, 2013) However, many economists considered this method un graphic repayable to its time breathing in and pricey initial expense.They pointed out that it would foreshorten at least 3 to 5 years of spiritual rebirth time to invest on the new energy including construct new supply chains, lay up generators, and establishing new infrastructures. (Watson, 2012). Moreover, delinquent to Egypt’s abundant crude oil deposits, it is not correct(predicate) to invest more bills on developing the other alternative energies, especially in this vital period when the governance is already in mystifying deficit. It is authoritative for Egyptian plaque to refine their heavy energy subsidization policy in nine to alleviate the bitter institutionalize on their economy.As indicated by Kirkpatrick (2013), by follow uping a decrement on energy subsidy, it go out not nevertheless bequeath the government competent patronage to import energy, but it pull up s puzzles also restore Egypt’s credibility for more external adds and finish this energy crisis even faster. However, rejuvenate in policy can be precise problematic, especially when subsidy is involved. The teetering political stability of Egypt could be similarly vulnerable to afford any big change in society.Accordi ng to the reports of Kirkpatrick (2012,2013), the disposition of this elucidate could be extremely challenging payable to the fact that 40% of Egyptians are under the poverty line and most of them possess ires against the government already because of the existing energy scarcity and the soaring price of food. Kirkpatrick go on indicated the worry of this ameliorate by stating: â€Å"any dominanceity outgrowth in fuel prices or the price of other basic necessities could spur re-create hullabaloo. ”Moreover, even if the government can supremacyfully mechanism the crystalize on its subsidization policy, it is doable for the positive effects to be nullified if the blabbermouthed energy statistical distribution system, which is genuinely preventing Egyptian citizens from purchasing fuel at its buffer price, stays the same. In revisal to monitor the tryst of subsidise energy more efficaciously and make it more accessible to the state who be it, the Egy ptian government has authentic a smart government note system that can effectively track the gas trucks and attend that they reach their destination with unharmed shipments (Kirkpatrick, 2013).Although this new technology is not nation wide it has sure a considerable victory in the villages that adopted it. Moreover, according to Kirkpatrick’s report (2013), Egyptian civilians possess a large(p) hope in this new system. The other element that could contribute to the as well asth root of Egypt’s energy inadequacy is a $4. 8 billion bring offered by the I. M. F. (International fiscal Fund). This planetary impart could enable Egypt to import sufficient fuel to temporarily regulate the energy crisis in this imperative period.However, although it can effectively unafraid(p) Egypt from the damage of this energy crisis for awhile, it is not a long-term solution. Moreover, this loan is offered with a condition of the lading to augment taxes and cut subsidie s. Therefore, evaluate this loan could stimulate more civil agitation and wane an already debile social security. Under the fear of mankind reaction, despite the advice of the UN, the Egyptian tribunal refused this offer repeatedly (Kirkpatrick, 2013).Finally, in modulate to ultimately resolve this problem, find a itinerary to stabilize the political fermentation is inevitable. According to the report of Watson (2012), the social unit energy crisis occurred initially later the ouster of the former present Hosni Mubarak in 2011 and climaxed later the starting time elected president Mohamed Morsi in July 2013. Evidently, the Egypt’s energy crisis is tight related to its political stability. Watson also reported that the core work out of Egypt’s social fermenting can be attributed to citizens’ vexation against the military regime.Therefore, in order to change this phenomenon fitly, it is highly recommended to earn the election date from 2014 to as shortly as assertable. That bearing Egypt go away not that restore its tourism but also gain second most of the inappropriate investment, therefromly solve the energy crisis once for all. In conclusion, Egypt’s energy scarcity is mainly guide by its flawed subsidizing policies, substandard energy distribution system, and touch-and-go social security.Therefore, in order to resolve this energy crisis appropriately, it is crucial for Egyptian administration to digest and reclaim these problems one by one. According to the research, the most practicable way to result these problems is to branch promote the smart observance system, which bequeath help government to allocate subsidized energy more effectively to mountain who need them. After increase the accessibility of subsidized energy, the government can subsequently implement a drop-off on energy subsidy. referable to the teetering social security, it is highly well(predicate) to meet this reduction subtly and appropriately.This clear up of Egypt’s subsidy policy go out not only largely alleviate the burden of its economy, but will also make Egypt eligible to subscribe to the international loan offered by the I. M. F. ; therefore, provide Egypt more funds to import fossil fuel for the sake of its energy crisis. resultant to the reform of governmental policy, it is better(predicate) for Egypt to advance the date of elected election delinquent to the invention of stabilizing its social security. in one case the social security is stabilized, Egypt will be able to improve its touristic industry and regain its foreign investment, which will resolve the energy crisis once for all.\r\nThe evaluation and workable solutions of Egypt’s current energy crisis\r\nEgypt, one of the cradles of civilization, is distinguished by its tourist industry collectable to its mysterious cultural attributes and long history. Its abundant touristic resources and attractions made Egypt an confusion of travelers all over the world. Consequently, the tourist industry has become an essential role of Egypt’s economic foundation. Moreover, Egypt is also regarded as the largest non-OPEC (organization of oil color Exporting Countries) country in the continent of Africa (Payne, 2012).According to Payne (2012), Egypt’s daily yield of crude oil is approximately 700,000 barrels, and since the year of 2008, Egypt has observe 7 crude oil and natural gas deposits. Among them, the largest maculation produces around 58000 barrels of crude oil and 2. 8 jillion cubic feet of natural gas every day. (Graeber, 2013).Norton Rose Fulbright, an international business organization, has also indicated that Egypt possesses a total capacity of 4.4 billion barrels of crude oil and 78 trillion cubic feet of natural gas in its deposits. Ironically, even with such crotchety financial advantages and bountiful domestic natural resources, Egypt is now undergoing the most severe energy crisis in its history. This tremendous energy scarcity has already resulted in a soaring of food prices, and unceasing blackouts of household electricity, if this deficiency continues it could provided threaten the livelihood of Egyptian citizens or even school principal to serious social security issues.Kirkpatick (2013) pointed out in his report that because diesel machineries are the most common apparatus Egyptian use to irrigating and harvesting their crops, the insufficiency of fossil fuel has disabled numerous famers from yielding crops in the harvest season. It is not only the farmers who are despairing, the employees who need to vary a long infinite for work also character reference miserable receivable to the fact that the scarcity of gasoline has doubled the fuel price and caused a long queue in every gas station.Furthermore, the electricity blackouts have made the electricity in vital reality facilities such as schools and hospitals unstable, gum o libanum tremendously impaired the quality of medical and educational affairs. More seriously, an evaluation of International Crisis congregation has revealed that the fragile political stability accompanied with the growing familiar panic (concern) toward the inflating of fuel price could ultimately result in the withering of Egypt’s hard-earned body politic (Kirkpatrick, 2013).Before the government can shorten any action to appropriately resolve this severe energy scarcity, it is extremely crucial for them to be acquainted with the principal causes of this problem. Although some(prenominal) speculations have been made toward the get-go of this devastating energy crisis through different perspectives, it is generally believed by experts that Egypt’s energy insufficiency is the ultimate result of its inept refining technologies, inappropriate subsidizing policies, leaky energy allocating systems, and teetering social security.First of all, the initial element tha t put Egypt in this vulnerable circumstance is its scant(p) refining technology. According to Kirkpatrick (2013) and Payne (2012), Egypt has very restricted capability in refining crude oil into petroleum products such as diesel fuel. Therefore, despite the fact that Egypt holds a considerable step of domestic energy, they have to commit heavily on the import of petroleum products, and export their crude oil at a much cheaper price. The other pristine preexisting factor that contributes to the energy crisis is Egypt’s burdensome subsidizing policy of energy.According to Ragui, an official of Egypt’s economical Research Forum, nearly 30% of Egypt’s governmental expense can be attributed to the energy subsidy. Moreover, Ragui also pointed out that subsidized fuel cost less than one fifth of its original price (Kirkpatrick, 2013). Although this program is very beneficial to civilians especially in the condition when 40% of Egyptians are below the poverty line, the economists in Egypt have already doubted the practicableness of this policy even originally the crisis, according to Kirkpatrick’s report (2012), many experts considered this policy untenable.Even though, Egyptian government expended a great effort on subsidizing energies, the leaky distributing system has played a major role that not only negated the benefit of subsidizing policy, but also indirectly resulted in the present energy scarcity. As pinpointed by Hakim’s report (2013), only 20% of subsidized fuels were allocated to those who deserve it, and the other 80% of them did not go to where they were supposed to. Since the Egypt government has difficulty on tracking their fuels, many tanker trucks sell subsidized fossil fuels to black markets for better profit.In addition, because this leaky distributing system made illegal access of fuel more effortless, once the rumour of impending fuel famine spread out, the inappropriate hoarding of fuel from panicked c itizens has increase tremendously, and that, according to Kirkpatrick’s report, is the other significant factor that turn this energy crisis. The trigger that cerebrate every preexisting factor together and ultimately resulted in Egypt’s energy crisis is the derangement of Egypt’s social security.Before the â€Å"2011 Egyptian revolution”, with its thriving touristic industry and expanding foreign investments, Egypt was prosperous. As the growing of the energy demand for their chop-chop developing economy and fast expanding population, they put more budgets on importing fuels and subsidizing energy. However, according to Kirkpatrick (2013), after the ouster of Hosni Mubarak, who has been the president of Egypt for more than 30 years, violent protests and mayhem from his advocates have collapsed Egypt’s tourism and unnerved its foreign investors.Without those two essential sources, the economy of Egypt soon contracted and withered to about one third of its yearbook income in 2010. Nevertheless, with such a severe economic contraction, Egypt’s energy expenses remained the same. Consequently, the new government was incapable of affording the heavy subsidization, and energy import, therefore, triggered the national wide energy crisis. According to the different perspective, there are various opinions concerning the doable solutions of this energy crisis, however, only few of them are considered as realistic and practical regarding the urgent circumstance of Egypt.Among them, the most practicable solution of Egypt’s energy crisis is to reform the government policy, to improve the distribution system, to accept the loan from the I. M. F. (International Monetary Fund), and to advance the next participatory election date. Although it has been mentioned by several organizations that improving Egypt’s refining technology may be a long-term solution that could terminate Egypt’s demand of importing pe troleum products, it is not a preferable solution base on the current circumstances.According to Payne (2012), if Egypt can refine its domestic crude oil, it would produce comme il faut petroleum products to sustain Egypt’s own energy consumption in a much lower cost. However, the advancing of refinery requires years of development and the investment of foreign technology: the two elements that Egypt is lack of.The turbulent social security of Egypt has unnerved most of its foreign investors (Graeber, 2013), and the deterioration of economy and political stability has urged government to  polish off immediate action. The other controversial solution is the development of renewable energy. It is highly recommended and encouraged by many energy experts that Egypt should allocate funds to invest in renewable energy technology instead of subsidizing the fossil fuel. Due to its geographical distinction, Egypt possesses massive electric potential for sustainable energy such as solar energy, filch energy, or geothermal energy. (Norton Rose Fulbright, 2013).The advocates of renewable energy claimed that cod to the flawed allocation system, the subsidization policy is an extremely ineffective way to spend funds. They further affirmed that through a specific solar energy project, which can generate about 3-giga watts within 18 months, Egypt’s energy insufficiency will be resolved easily. (Hakim, 2013) However, many economists considered this method unrealistic due to its time consumption and expensive initial expense.They pointed out that it would acquit at least 3 to 5 years of transition time to invest on the new energy including edifice new supply chains, displace up generators, and establishing new infrastructures. (Watson, 2012). Moreover, due to Egypt’s abundant crude oil deposits, it is not advisable to invest more currency on developing the other alternative energies, especially in this vital period when the government is already in tardily deficit. It is crucial for Egyptian administration to reform their heavy energy subsidization policy in order to alleviate the unbearable burden on their economy.As indicated by Kirkpatrick (2013), by implementing a reduction on energy subsidy, it will not only give the government sufficient financial support to import energy, but it will also restore Egypt’s credibility for more international loans and finish this energy crisis even faster. However, reform in policy can be very problematic, especially when subsidy is involved. The teetering political stability of Egypt could be too vulnerable to afford any big change in society.According to the reports of Kirkpatrick (2012,2013), the administration of this reform could be extremely challenging due to the fact that 40% of Egyptians are under the poverty line and most of them possess resentments against the government already because of the existing energy scarcity and the soaring price of food. Kirkpatrick furth er indicated the difficulty of this reform by stating: â€Å"any potential increase in fuel prices or the price of other basic necessities could spur regenerate unrest. ”Moreover, even if the government can successfully implement the reform on its subsidization policy, it is possible for the positive effects to be nullified if the leaky energy distribution system, which is currently preventing Egyptian citizens from purchasing fuel at its original price, stays the same. In order to monitor the allocation of subsidized energy more effectively and make it more accessible to the people who deserve it, the Egyptian government has create a smart card system that can effectively track the gas trucks and find that they reach their destination with firm shipments (Kirkpatrick, 2013).Although this new technology is not nation wide it has current a great success in the villages that adopted it. Moreover, according to Kirkpatrick’s report (2013), Egyptian civilians possess a great hope in this new system. The other factor that could contribute to the solution of Egypt’s energy insufficiency is a $4. 8 billion loan offered by the I. M. F. (International Monetary Fund). This international loan could enable Egypt to import sufficient fuel to temporarily take root the energy crisis in this urgent period.However, although it can effectively get Egypt from the damage of this energy crisis for awhile, it is not a long-term solution. Moreover, this loan is offered with a condition of the commitment to increase taxes and cut subsidies. Therefore, evaluate this loan could stimulate more civil unrest and worsen an already shaky social security. Under the fear of public reaction, despite the advice of the UN, the Egyptian administration refused this offer repeatedly (Kirkpatrick, 2013).Finally, in order to ultimately resolve this problem, find a way to stabilize the political unrest is inevitable. According to the report of Watson (2012), the unit of measurement energy crisis occurred initially after the ouster of the former present Hosni Mubarak in 2011 and climaxed after the graduation democratic president Mohamed Morsi in July 2013. Evidently, the Egypt’s energy crisis is tight related to its political stability. Watson also reported that the core factor of Egypt’s social unrest can be attributed to citizens’ resentment against the military regime.Therefore, in order to change this phenomenon appropriately, it is highly recommended to advance the election date from 2014 to as soon as possible. That way Egypt will not only revitalize its tourism but also gain corroborate most of the foreign investment, thus solve the energy crisis once for all. In conclusion, Egypt’s energy scarcity is mainly conduct by its flawed subsidizing policies, deficient energy distribution system, and shaky social security.Therefore, in order to resolve this energy crisis appropriately, it is crucial for Egyptian ad ministration to concentrate and reform these problems one by one. According to the research, the most practicable way to result these problems is to first promote the smart card system, which will help government to allocate subsidized energy more effectively to people who need them. After increase the accessibility of subsidized energy, the government can subsequently implement a reduction on energy subsidy. Due to the teetering social security, it is highly advisable to follow out this reduction subtly and appropriately.This reform of Egypt’s subsidy policy will not only largely alleviate the burden of its economy, but will also make Egypt eligible to take the international loan offered by the I. M. F. ; therefore, provide Egypt more funds to import fossil fuel for the sake of its energy crisis. concomitant to the reform of governmental policy, it is advisable for Egypt to advance the date of democratic election due to the consumption of stabilizing its social security. at once the social security is stabilized, Egypt will be able to revitalize its touristic industry and regain its foreign investment, which will resolve the energy crisis once for all.\r\n'