Energy Sector Risk Assessment Management Strategy

Energy Sector Risk Assessment Management Strategy
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Energy Sector Risk Assessment Management Strategy
Introduction
The United States has diverse critical infrastructure that requires ongoing protection from diverse risks. The energy sector is one of the most fundamental infrastructures that run the entire nation and whose continued protection and development shape the country’s stability. Infrastructure Report Card (2021) reveals that it plays a central role in generating, transmitting, and distributing electricity and supporting other energy-depended sectors. Saundry (2019) also adds that rapid and dynamic changes have occurred in this niche, leading to vulnerabilities that may threaten the nation’s energy sources. Such consideration requires the federal and state governments to collaborate in instituting appropriate security measures for protecting this infrastructure. Achieving this goal requires a thorough assessment of the risks through a management strategy to understand the state, risks, and opportunities related to this sector. Thus, this report outlines a risk analysis for the United State’s energy sector, including the protection approaches and appropriate courses of action to uphold its security.
United States Energy Sector Historical Perspective
The road to the robust energy sector in the U.S. includes numerous transformations, developments, and improvements. Sachs (2015) indicates that the sector dates back to the 1800s, demonstrating the long historical background that has enabled it to gain the recognition it enjoys at a global scale. The profile has grown consistently, making this nation one of the leading energy producers and consumers, trailing China closely. Projections indicate that since 2000, the country has recorded an increase of up to 42% in energy production (Diaz, 2021). This growth has positioned the country at the top, changing its status as a major energy importer since its oil production skyrocketed by over 106% during this period. However, the United States has not always been a leader in the energy sector. The country has a rich historical record demonstrating how it has gradually exploited diverse energy sources.
Wood and water represent the earliest energy sources used in the United States. Sachs (2015) demonstrates that families relied on hand-held equipment to chop wood, which provided energy through burning. They also used this wood for building water wheels and dams. Events reveal that families used firewood for cooking and heating their homes during the 18th century (Sachs, 2015). Charcoal was particularly a unique fuel for ironmaking. They also used water to drive mills for grinding flour. These gained momentum in the 19th century due to the rise of textile and paper making. For instance, Lowell, Massachusetts, harbored some of the largest textile mills, offering employment to thousands of residents during the 1820s. The power emerging from these energy sources spurred industrial growth, making the New England region the start of a new era. Such accounts of the U.S. energy sector’s background confirm that it has grown organically over c...