Case Study on California Energy Crisis

California Energy Crisis Case Study:

California energy crisis is the serious electricity crisis which occurred in 2000 in California, the USA under the effect of numerous factors. The case is also known as the Western U.S. Energy Crisis, because many regions of the country faced the problem of shortage of electricity and enormous prices on it.

It does not worth mentioning that the crisis was a surprise for the government, because California was one of the leaders in energy sector and the production of its energy was more than twice higher than it actually required. The year of 1996 is known to be the starting point of the growth of energy productive rates but very soon the situation changed. Because of the increase of population up to 13% the demand on electricity increased but the amount of the produced energy remained on its place. The culmination of the crisis was in 2000, when California suffered from severe drought which caused negative effect on energy sector.A serious amount of electricity is produced by hydropower plants, but the drought prevented the state from receiving energy in this way.

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In addition, the crisis became even more serious because of the market manipulations of Enron, the company which was known after its operations in the sphere energy production and supply. Because of the manipulations of the company, prices on electricity increased in 800%. Enron created the artificial shortage of energy practising rolling blackouts, which affected numerous energy companies negatively (they required constant reliable energy supply). As a result these companies bankrupted because of the client flow.

Clients denied cooperation with the unreliable energy companies which could not provide constant electricity supply. The regulation of the problem cost more than 40 billion dollars and the result of the crisis was also the bankrupting of Enron.California energy crisis is supposed to be one of the most famous artificially caused crises in the human history and the student is able to pay attention to the problem in order to observe it from all sides. The young person is required to analyze the issue in the profound way focusing on the cause of the crisis and its effect on the energy supply, the financial background of consumers. The student can share his point of view about the solution of the problem in order to demonstrate his ability to analyze serious matters critically.

The student can prepare a well-formatted and logical assignment dwelling on the instructions provided by the free example case study on California energy crisis written online. The young person is able to succeed in writing completing a high-quality text reading a free sample case study on California energy crisis found in the Internet.