Energy supply refers to both renewable and non-renewable resources used to create a chemical or physical reaction. It includes petroleum products, electricity, and untapped resources. Governments enforce guidelines on energy use, including carbon offsetting laws that limit carbon dioxide waste and levy fines on violators.
When the phrase energy supply is used, it refers to a fuel source used to create a chemical or physical reaction. Energy supply is an umbrella term that includes both renewable and non-renewable resources. Closely related terms, such as fuel supply, are sometimes used to describe more specific resources. The availability of fuels and other energy resources from the global and local energy supply can have a large effect on the price of local energy.
In industrial settings, the term energy supply is commonly used to refer to petroleum products, such as gasoline and biodiesel fuel. It can also be used to refer to electricity supplied by coal, wind, solar energy, or nuclear reaction. Since every industry requires some form of energy to run machinery and equipment, production depends on a ready supply of energy. When energy supplies are cut, production lines are also disrupted. In cases where demand increases the local or global energy price, consumers may face higher prices to compensate for the producer’s higher production costs.
In many areas of the world there are still untapped energy resources. Sedimentary oil and gas reserves remain untouched as a secondary energy source to be used when the more abundant and readily available energy supplies are depleted. Despite their value, these resources often remain untouched due to pressure from various political or environmental groups or because they are difficult to harvest. In many cases, the difficulty and expense involved in harvesting these resources would make the price of energy too high while cheaper means are available.
To maintain some degree of control over the price of energy and to prevent serious damage to the environment, many governments have established at least a minimal set of guidelines on energy use. These guidelines are enforced by various regulatory groups delegated with some authority by their local government. These groups often have the authority to punish companies that fail to comply with the rules relating to the conservation of energy supplies. One of the most common examples of this type of energy supply regulation are the carbon offsetting measures adopted in many countries.
Under carbon offset laws, manufacturers and industries can only produce so many tons of carbon dioxide as waste each year. This usage limit includes carbon dioxide produced from electricity or other fuels used for energy supply and emissions from the factory’s own production. These limits are strictly enforced, and energy law enforcement groups can levy hefty fines on companies that violate them.
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