The use of oil in different sectors of the production process has an impact on the lives of different people around the world. This is because of overdependence on the product and the need to ensure that there is a steady supply of the product in the future. The United States of America is one of the largest consumers of crude oil in the world. This is because of the vast industrialization efforts being put in place by the government. The country gets most of its oil from Azerbaijan which is a key state in the Caspian Sea. The fact that there are conflicts in Azerbaijan presents the United States with a serious issue when it comes to the supply of oil. America has to come up with a way of mitigating against a breakdown in supply if the situation in Azerbaijan gets worse than the current state.
The conflicts in Azerbaijan are being caused by tension from neighboring country Armenia who want part of Nargono-Karabakh to be given back to them. The two countries are faced with a dilemma because it is difficult to argue out on who the owner of the piece of land is as it was won after they split from the Soviet Union. The boundary dispute has no effective system that will clearly define the region and bring peace. The conflict between the two has created tension that can hinder the supply of oil out of the country. The fact that Azerbaijan has spent millions of dollars in the last ten years purchasing military equipment shows that the country has no intention of settling the problem diplomatically. This can lead to further catastrophe and harm to the citizens and economy of the country. The border dispute is a major problem because countries are looking to safeguard and grab parcels of land that they believe are rich in oil deposits. This also makes it necessary for a country like Azerbaijan to arm and protect itself from invasion by other states. This has played a significant role in ensuring that countries are unable to resolve the conflict amicably.
Threat to the US
This conflict is a threat to countries like the Unites States of America because they are dependent on the Azerbaijan Oil for their daily activities and economy. Azerbaijan supplies a lot of its crude oil through Turkey and Georgia. This means that if these two regions are not experiencing peace and stability, the pipelines will be in danger of sabotage or damage by other parties. The problems in Turkey are a growing concern for the United States of America as it can be seen in their efforts to diplomatically solve the issue in the region. The US is also playing a significant role in mediating and trying to find a solution to the problem and avoid conflicts between Azerbaijan and Armenia. However, as the situation gets worse, America will have to find a long-term solution to the problem in order to ensure there is consistency in different activities in their home country. This means that people in the transport sector will be able to keep using the means without changes in prices of fuel. The crude oil that is supplied into the country plays a vital role in ensuring that the economy of the country stays productive. This is by fostering industrialization and other factors that have a direct impact to the performance of the economy of the country. It is important that a soultion is identified to the problem in order to ensure that the economy of the country is not affected.
Solution to the Problem
In this situation, the country can choose to find a new supplier of oil, use its oil reserves, or find an alternative source of fuel. The country has a vast storage system that holds oil that can be used by people in the country for a period of time. These reserves are in different parts of the country which makes it easy for the government to put in place strategies that will make it possible to distribute the oil in different states. However, this presents a challenge because the reserves should only be accessed in times of great crisis and a shortage of oil in the market. The reserves should be used to reduce prices in the market, meet shortages in times of need, and prevent a deficit in the market. Accessing these reserves in times of need that will not lead to replenishment is a major problem for the country. In the process of executing this alternative of sourcing oil, there will be a resultant shortage in fuel. This will in turn force the country to find a new method of acquiring oil or any that will be used to replenish the lost resources. The government should therefore, look into an alternative source of oil for the country. This is the best way to deal with the problem as it will leave the reserves untouched, and ensure that supply is not broken hence leading to a steady price. Another option for the government is to identify an alternative source of energy for the country. Alternative sources of energy include wind, geothermal, water turbines and other methods of producing power. Alternative methods are productive because it involves the use of clean energy that will not have negative impact on the environment. However, this process is tasking and expensive because a lot of people and structures have been set up to use in the new systems. The cost of setting up infrastructure will have a negative impact on the economy of the country. This is because funds will be assigned to different parts of the country in the process of setting up infrastructure that will be used to source for the alternative energy. The process will also involve conducting a feasibility study on how reliable the new energy is for people in the country. This process is too costly for a country despite the long term benefits that people can enjoy. The future of the fuel industry lies on identifying cheap and better fuels that can be used by people in the country. These cheap methods will help to ensure that people are exposed to affordable options when it comes to the use of fuel in different activities in the society. It is important that the country finds an alternative importer of crude oil for the people to use. This will help in ensuring that reserves stay intact and only come into use in case of a crisis or countrywide shortage.
The solution to the looming oil crisis in America is finding a new supplier for the oil demand in their country. This will help the country to avoid using the reserves that are meant for a crisis or reducing shortage in the market. This solution will cost less than the option of embracing a new source of energy which will have a very large short-term cost. The reserves in the country should remain untapped in order to avoid an economic crisis in case there are no ready and willing suppliers in the market. A new supplier and other alternative sources of energy are an important part of the solution as it will help to ensure the economy of the country is not affected.