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Access to cheap energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries and the critical need for energy has led to significant vulnerabilities. Threats to global energy security include the political instability of several energy producing countries, the manipulation of energy supplies, the competition over energy sources, attacks on supply infrastructure, as well as accidents and natural disasters.

It is also the limited supplies of the most common forms of primary energy, i.e. Oil and Gas that changes perceptions on this topic. Although plenty of coal, up to 155 years worth, is readily available, coal is not the fossil fuel of choice for many more advanced countries because of its highly polluting nature. The potential need to change our primary energy sources in the foreseeable future is the crux of the energy security question, leading to higher prices, more limited access to sources of energy, competitions and political troubles, which in turn make the threat even larger.

One of the leading threats to energy security is the significant increase in energy prices, either on the world markets – as has occurred in a number of energy crises over the years – or by the imposition of price increases by an oligopoly or monopoly supplier, cartel or country.

In recent developments on the energy front of the US Government, Federal Energy and Resources Minister Martin Ferguson announced that energy security is just as important as reducing greenhouse gas emissions.

The electricity industry is concerned some power generators could be forced to close, depending on the carbon price in an emissions trading scheme. The Federal Government released its carbon pollution reduction scheme, but it did not include carbon prices.

According to Ferguson, energy security will be a major consideration when the Government decides on a price for carbon.

“One of the biggest priorities is not only to reduce CO2 emissions, it’s also about guaranteeing energy security. That’s why we have to put in place a process that puts a price on carbon which, for example, is very important in encouraging a growth in the use of gas. We’ve also got to facilitate technological change,” he said.

Long term measures to increase energy security have to center on reducing dependence on any one source of imported energy, increasing the number of suppliers, exploiting native fossil fuel or renewable energy resources, and reducing overall demand through energy conservation measures.

He further announced that a possible way of simultaneously contributing to international energy and climate security is by investing in decentralized energy. By building electricity generating capacity close to the source of demand one can improve combustion efficiency (by capturing waste heat) and reduce imports of natural gas and other fuels. Using on-site renewable powered energy can go even further in reducing and fuel imports and emissions responsible for climate change and air pollution.

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