Energy Security: Energy
Supply, Demand and
Security
Sources of Energy
Renewable
Geothermal
Tidal
Ocean
Solar
Wind
Non-Renewable
Coal
Oil
Natural Gas
Recyclable
Biomass
Energy Consumption
Energy availability & affordability, and
cultural differences all contribute to the
move to modern energy sources
Climate can increase consumption -
there is a need for air conditioning
and heating depending on the
climate
Players
Biggest = Middle East
Saudi Arabia alone has
22% of the world's oil
reserves
Uneven distribution
China has huge reserves of coal
Global Demand for Energy
2 billion
people don't
have access to
modern
energy
Area either have
no supply
network or they
can't afford it
One of the UN's
millennium development
goals = alleviate energy
povery
Energy poverty case study:
India is fast becoming one of
the world's largest energy
consumers BUT only a low
percentage have access to clean
and efficient energy systems.
This is especially the case in
rural areas where an estimated
70% of the country's population
live. Here they mostly use
biomass - using hand-gathered
solid fuels (e.g. wood/dung) for
indoor cooking. This is known to
cause serious health problems
Energy poverty looks rather different in
the UK: Energy is used mainly for
heating and lighting in the UK. 5 million
rural houses are not connected to the
mains gas network. They instead rely on
LPG for heating and cooking, however in
recent years this has become
considerably more expensive than
mains gas. An alternative is domestic oil
but this can be expensive and prices
have also risen significantly in recent
years.
The winter heating
allowance that is paid to
pensioners by the
government each year
shows official
recognition that energy
poverty exists in the UK,
if only amongst elderly
people
Demand =
need or desire
for energy
Consumption
= use &
availability
In some places,
demand exceeds
supply
Sources of demand
Transport takes nearly half of the
world's oil production, while homes
and commercial properties use a little
less than one-third of it (mainly for
heating)
Over two-thirds of coal
production is used to
generate electricity in
thermal power stations
Much of the natural gas output is used to generate
electricity, as well as hating of industrial, commercial
and residential properties
Rising Consumption
The greater the demand,
the higher the
consumption
During the 20th
Century, demand
increased tenfold,
but it is expected
to double by 2050
and reach an
annual level of
around 900
exajoules
While much of that energy demand will be met by
non-renewable sources (natural gas, oil & coal) the
forecasts also show an increasingly significant
contribution by renewable energies
The rise could be attributed to
population growth, economic
development (industrialisation) and
rising standards of living
Future Trends
Future increases in demand are unlikely
to be even across the globe
China and India are expected to have
the largest increase, while countries in
western Europe may actually reduce
their demands as a result of improved
efficiency and rising energy costs
Energy consumption in
the developing world is
expected to double by
2020, while it increases by
about one-third in the
developed world. If this
happens, energy
consumption in the two
'worlds' will have become
roughly equal
Energy Security
Security is vital for the functioning of a country,
particularly of its economy and well-being of its people
A country which is self-sufficient in resources will be secure as it has
the energy needed for its development. For less fortunate countries
which rely on imports, energy security depends on whether there is
uninterrupted availability of energy at affordable prices
Risks to energy security
Physical - e.g.
exhaustion of reserves
or disruption of supply
lines by natural hazards
Environmental - e.g.
protests caused by
exploitation of
resources
Economic - e.g. sudden rises in costs or
exhaustion of domestic supplies forcing
increased imports of higher-priced energy
Geopolitical - e.g. political instability in energy-producing regions, disputes or
conflict over sovereignty (ownership) of resources or disputes over energy
transmission by pipelines or cables across countries
Measuring energy
security
Energy security is complex but one
attempt to measure security is the
energy security index (ESI). This
assesses the extent to which a country
may look forward to a reliable and
affordable supply of energy - what is
this risk that such a supply may be
threatened?
The higher the
index, the lower
the risk and
therefore the
greater the energy
security
Calculation based on availability (the amount
and longevity of each country's domestic oil,
gas and electricity), diversity (the range of
energy sources used in meeting each
country's energy demand), and Intensity (the
degree to which the economy of each country
is dependent on oil and gas)
Levels of risk: ESI values range from 0 to 10 ,
between these values four categories or
degrees of risk are recognised: Extreme risk
(<2.5, most in northern Africa & northern South
America & South Korea), high risk (2.5-5.0, such
countries are scattered across the globe,
including a number of developed countries -
notably USA and Japan), medium risk (5.0-7.5,
widespread category in Europe, south and
south-east Asia and Australasia), and low risk
(>7.5, qualifying countries include Canada,
Russia, Norway and the more stable middle
eastern states - all are producers and
exporters of oil and gas)
Characteristics of risk: heavy importers of oil and gas
show high levels of risk; countries with substantial
reserves show low levels of risk, regardless of their own
levels of consumption; medium-sized developed countries
show medium levels of risk, partly because they use a
diversity of energy resources; level of risk in the large
emerging economies (BRI) is similar to that in most
advanced economies; the relatively low level of risk in
many African countries reflects their low consumption or
the existence of untapped resources; the USA has a
higher risk than might be expected because its huge
consumption and imports overshadow its significant oil
and gas resources and the fact that it uses a diverse
range of energy sources
Case Study: UK
1980-90s gas and oil from the North Sea
meant the UK was virtually self-sufficient.
North sea is now declining in production
and the UK became a net importer of gas
in 2004. By 2020, gas importers could
account for 80-90% of total demand
Does this cause an energy security
problem? Not necessarily, e.g. coal
accounts for 15% of the UK's primary
energy supply and most is imported. This
doesn't create security issues because
coal is widely available from reliable
sources at competitive prices. The UK still
has workable coal reserves.
The UK relies not just on coal but
on a mixture of oil, gas and other
forms of power. In general, the UK
needs to minimise risks such as
disrupted supplies and escalating
prices but each major source of
energy has its own risk