Energy Sector Risk Assessment Management Strategy

Energy Sector Risk Assessment Management Strategy
Student’s Name
Professor’s Name
Institutional Affiliations
Course Name and Number
Due Date
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 centuries.
By the first half of the 19th century, developments had gained momentum, outliving the dominance of wood and water as the primary energy source. The rise of the steam engine phased out wood and charcoal and introduced coal as a more reliable option due to the speeds it enabled the engines to achieve (Sachs, 2021). The author indicates that these transformations led to rapid urbanization and industrialization as more factories embraced coal power to improve their production rate and transport their products. Data reveals that households in regions such as Pennsylvania were lighting and warming their homes using coal by 1820. Such developments paved the way for the exploration of other energy sources.
Continued advancements throughout the 19th century led to the commodification and the rise of the oil and electricity era. This period was disruptive, changing the approach to work and other aspects because it also introduced diverse power-driven inventions. Diaz (2021) notes that electricity and oils marked a new milestone in the evolution of the energy sector. The technological developments associated with these energy sources emerge in urban areas, and social transformation illustrates the importance of infrastructure. According to the Infrastructure Report Card (2021), diverse aspects, including stagnation in security advancements, have predisposed the areas to different threats throughout the years. Such awareness highlights the importance of conducting a thorough risk assessment to identify these aspects and inform the appropriate security actions.
Many other shifts in the United States energy niche occurred since 2000, when the country recorded an unprecedented increase in renewable energy use, biofuel, and gas and oil. Saundry (2019) indicates that the nation rapidly expanded in the unconventional production of gases and oils, raising it as a leading producer by 2014. During the same timeline, biofuel use, including biodiesel and corn ethanol, increased due to embracement of the renewable fuel standards (RFS) by 2005. Such efforts also prompted the emergence of renewable electricity by installing solar and wind-generating sources. Thus, by 2017, wind power had risen to 6.3% while solar-based ones constituted 1.9%, which marked a major growth to complement other dominant sources (Saundry, 2019). Since then, the energy sector in the nation has continued to record groundbreaking developments, further emphasizing the value of risk analysis for integrating protective measures.
Purpose of the Risk Analysis
The energy sector has become dynamic and complex with the integration of technological advancements to facilitate the production and distribution of diverse sources, including oils, electricity, renewable sources, nuclear, and many others. Diaz (2021) illustrates that managing today’s energy sector requires a thorough understanding of the subtle interactions between the diverse departments to maintain a seamless and uninterrupted consumer energy supply. According to Machado et al. (2023), stakeholders can only maintain an uninterrupted energy flow in the nation by constantly assessing various risks, needs, and opportunities. In this context, the author underlines the value of risk analysis as a technique for achieving this goal. Machado et al. (2023) recognize that persistent evaluation of the existing and emerging components of the energy infrastructure is a progressive and proactive tactic for establishing dependable systems. Thus, they recommend using proven techniques, including the Bayesian Networks (BN), to facilitate the process. Such an approach would keep the security of the infrastructure within the desirable standards.
Although risk analysis meets different goals, the primary purpose is to keep the systems up to date with technological and security needs. Machado et al. (2023) illustrate that advancements in the energy sector are rapid and complex, demanding updating the nation’s infrastructure to keep up with these changes. A failure to pursue this objective may render the systems outdated, as noted by Infrastructure Report Card (2021) regarding the national grid. The author warns that its aging status is a concerning phenomenon that can pose significant infrastructural vulnerability. In this context, a risk analysis assists the experts in determining areas that require upgrading or strengthening to keep up with other global standards. Without such adjustments, a nation remains at increased risk of unprecedented or unavoidable internal or external attacks on its critical infrastructure.
Risk analysis reports often inform decision-making and promote growth. For instance, Machado et al. (2023) indicate that constant monitoring to analyze risks provides a real-time report of the service state. This aspect contributes to eradicating unnecessary maintenance costs, reducing the time spent during such routine activities, and deters accidents. Machado et al. (2023) acknowledge that global risks have prompted an increased desire for watertight security features for critical infrastructure. Since the energy sector is an invaluable aspect of the United States economy, understanding its uncertainties and difficulties has become fundamental. As a result, using tactics such as B.N. is a plus for in-depth awareness of the diverse cause-and-effect relations to remain alert and prepared for any eventualities. Thus, this aspect confirms the risk analysis uncovers the vulnerabilities and strengths of infrastructure to keep the stakeholders informed and ready to apply appropriate protective measures.
Significance of the Energy Sector’s Risk Analysis
Understanding the energy infrastructure’s conditions, risks, vulnerabilities, and growth potential is important for charting the appropriate maintenance and improvement processes. Machado et al. (2023) confirm that such an approach informs the federal government and other institutions to strategize on the best methods for protecting these systems. The authors note that all critical infrastructure remains under constant threat, which requires a thorough risk analysis to guide decision-making processes regarding protective measures. Diaz (2021) also demonstrates the expansiveness of the United State’s energy sector, ranging from crude oil and petroleum to electricity, nuclear power, coal, natural gas, and renewables, underscoring the need for integrating robust security for this critical infrastructure. The government can only achieve this goal through a proper risk analysis to direct security resources appropriately.
Recognizing the numer...