ENERGY SECURITY
May 20, 2015
ENERGY SECURITY
ENERGY SUPPLY, DEMAND AND SECURITY
ENERGY SOURCES Renewable energy source:
Energy source capable of natural regeneration on a human time scale
E.g. solar power, wind power Non-renewable energy source
Energy source that is finite on a human time scale Once exhausted, it can only be replaced over considerable periods
of geological time E.g. coal, natural gas
Recyclable energy source Reprocessed energy E.g. uranium in nuclear fission can be used repeatedly
Primary energy Energy found in natural resources I.e. original sources of energy – including renewable and non-
renewable Secondary energy
Primary energy that has been converted to a more convenient form E.g. electricity
DISTRIBUTION OF ENERGY RESERVES Russia and Eastern Europe
High reserves of natural gas and coal Amongst top ten countries for oil and uranium Energy surplus
Europe Dependent on energy imports Low energy efficiency – high wastefulness Lack of fossil fuel supply Energy insecurity
Middle East Large oil reserves Unstable regimes affecting fossil fuel supply Energy surplus
DISTRIBUTION OF ENERGY RESERVES CONTD. North America
Large coal resources Opportunity to exploit oil reserves in Arctic, Antarctic
and other sensitive areas Huge energy consumption – outweighs supplies Energy insecurity
Asia (excluding Russia) Large coal and uranium reserves Rapidly increasing demand – outweighs supplies Energy insecurity
Sub-Saharan Africa Dependency on foreign TNCs to exploit supply, e.g. oil
in Nigeria Energy Poverty
PHYSICAL FACTORS AFFECTING ENERGY RESERVES
Climate E.g. the need to keep cool in hot countries, by way
of air conditioning, significantly increases energy consumption in these countries
Availability E.g. geology determines availability of oil and coal
Local variations E.g. cloud cover and wind speed affect availability
of solar and wind energy Solar variations
E.g. stronger sun and longer sunshine hours along equator, therefore more potential for solar energy
HUMAN FACTORS AFFECTING ENERGY RESERVES
Energy infrastructure E.g. in LDCs, the infrastructure often doesn’t
exist to extract energy reserves such as oil Energy affordability
E.g. in some parts of the world where modern forms of energy are available, many people cannot afford to use it
Cultural preferences E.g. tradition keeps people using traditional
forms of energy such as open coal fires for heating
GLOBAL ENERGY SECURITY
Energy Security The extent to which an affordable, reliable and
stable energy supply can be achieved Factors affecting energy security
Natural hazards Political instability Dependency on imports Range of energy sources used Costs of energy
FACTORS AFFECTING UK’S ENERGY SECURITY Gas availability
Diminishing North sea gas, expected to run out within 50 years In 2004, over 90% of the UK’s gas supply was produced in the UK In 2020, the gas supply from the UK is predicted to be less than 10%,
with 20% expected to be imported from Norway, 40% from Europe (excluding Norway) and the rest from other parts of the world
Lead to decreasing political power of UK and increasing political power of gas rich nations, e.g. Russia (supplies 30% of European gas)
Oil availability Volatile oil prices Potential for political instability between UK and oil producing states Reached peak oil production in USA in 1970 Many argue global peak oil was reached in 2006
Global warming and renewable energy concerns Restrictions on over use of coal for energy Limited amount of sun for solar panels Concerns over nuclear safety and waste plus cost of building of
nuclear plants
GLOBAL ENERGY CONSUMPTION
Factors leading to increased energy consumption Population increase Improved standards of living Industrialisation / economic development Rural to urban migration
Future trends Increasing power usage in China and India Western Europe more energy efficient Energy consumption in developing world expected to
double by 2050 Energy consumption in developed world expected to
increase by 1/3 by 2050 Energy consumption of developed and developing world
expected to be equal by 2050
CHINA’S ENERGY SECURITY Energy consumption parallels that of its
economic development – it has more than quadrupled since 1980.
Energy Secure China is the biggest producer of coal in the
world, and relies on coal for 70% of its electricity generation.
The country also has large oil fields and controls 3% of the world’s oil reserves.
Though no longer self sufficient, can afford to import oil, predominantly from the Middle East.
Also relies on renewable energy; HEP (including the Three Gorges Dam) accounts for 16% of its energy production and therefore are plans to build HEP dams on all major rivers in China.
CHINA’S ENERGY SECURITY CONTD. Energy Insecure
Dependency on coal – vulnerable to global warming sanctions. Chinese government being pressure to find alternatives to coal
in order to reduce its level of pollution and contribution to climate change.
China’s largest oil fields have now peaked and some say that oil will run out within two decades.
Oil deposits in the Tarim Basin, in the west of China, are difficult and expensive to exploit, due to its remote location and difficult geology.
China’s deepwater exploration for oil may be threatened by political conflict with Vietnam and the Philippines.
HEP: natural hazards are a major threat to dams, and after the Sichuan earthquake, plans for extensive construction of dams may be reconsidered
Natural gas: very expensive and difficult to build pipelines from gas fields in Western China while liquefied gas is in short supply
THE IMPACTS OF ENERGY INSECURITY
ENERGY PATHWAYS Energy pathway
The flows of energy from producer to consumer Oil pathways
Middle East exports the most oil – approximately 4000 barrels to Japan, 3000 to Europe and 2000 to North America
Former Soviet Union exports almost 7000 barrels South America exports approximately 2,500 barrels to USA Europe exports just 408 barrels – to North America
Gas pathways Main gas pathway is trans-Siberian pipeline from Russia to
Eastern Europe New gas pipeline planned to transport gas from the Middle
East to Eastern Europe to decrease dependency on Russia
ENERGY PATHWAYS CONTD.
Factors which make energy pathways vulnerable Geopolitical connections between countries
(Ukraine-Russia) War – e.g. Gulf war, Iraq war Strikes by energy workers Damaged infrastructure from natural disasters Disintegration of infrastructure (e.g. pipelines) Terrorism
DISRUPTING ENERGY SUPPLIES:RUSSIA AND EUROPE
Russia and Ukraine Gas Dispute In November / December 2004, Ukraine’s
government changed. This government had pro-Western policies as
opposed to pro-Russian policies. As a result, Russia quadrupled the price of its gas
to Ukraine and the government of Ukraine refused to pay.
Gazprom (51% owned by Russian government) cut of the gas to Ukraine.
DISRUPTING ENERGY SUPPLIES:RUSSIA AND EUROPE CONTD.
Europe’s dependency on Russia Russia supplies a large proportion of Europe’s gas, and
most of this is piped through Ukraine. When Gazprom stopped supplying gas to Ukraine, the
flow of gas to the rest of Europe fell by 40% in some areas
Countries that rely on Russian gas could suffer economically if gas is cut
Europe’s energy security Gazprom relies on income from gas exports to Europe Russian gas was stable even during the Cold war New pipelines planned which bypass Ukraine and Blarus South Caucus pipeline will bring gas from Azerbaijan to
Europe via Turkey Europe looking alternative energy sources
DISRUPTING ENERGY SUPPLIES:RUSSIA AND EUROPE CONTD.
South Stream Pipeline Proposed gas pipeline owned by Gazprom Aims deliver gas from central Asia and Russia to
central Europe and Italy through the Balkans Will rival the proposed Nabucco pipeline, owned
by the EU to deliver gas to Eastern Europe EU believe that Russia aims to use their gas
supplies for political power and to outcompete the Nabucco pipeline
LOOKING FOR MORE ENERGY
Canada’s oil sands Oil sands are thick slurry composed of sand, water and
type of oil called bitumen Largest reserves of oil sands are in Alberta in Canada;
produced a million barrels of oil per day in 2003 and plan to produce 5 million barrels a day by 2030
Costs of exploiting oil sands Expensive to extract oil Very energy intensive and a large source of
greenhouse gas emissions – conventional oil production requires much less energy
Very water intensive – 2 to 5 barrels of water to produce every barrel of oil
Environmental impacts – removal of trees, shrubs and soil
LOOKING FOR MORE ENERGY: CANADA’S OIL SANDS
Benefits Provide an alternative source of oil when other
conventional soruces are unavailable for political or access reasons
Could meet 16% of North America’s demand for oil by 2030
Additional source of oil until more renewable sources are developed / implemented
Benefits Canadian economy – accounted for 20% of total exports in 2007
ENERGY PLAYERS Cartel
An association of producers or suppliers Formed to monopolise the production and distribution of a
product to control prices E.g. Organisation of Petroleum Exporting Countries (OPEC)
Advantages of cartels for producers Able to collectively control supply and therefore global prices Maximises profits of producers – when state owned, also GDP Political power – e.g. Yom Kippur war oil embargo where OPEC
cut off supply to USA so they would stop supporting Israel Disadvantages of cartels for producers
To ensure oil prices remain high, supply must be relatively low, meaning overall income is limited
Advantages of cartels for consumers Aim of cartel is to have stable prices – increases reliability for
consumer Disadvantages of cartels for consumers
Commodity traders cannot control prices Political instability / conflict may affect supply Highest prices
ENERGY SECURITY AND THE FUTURE
GLOBAL ENERGY UNCERTAINTIES
Factors contributing to global energy uncertainties Future performance of global economy Scale of global population growth Impact of rising living standards Size of undiscovered oil and gas reserves Discovery of new energy technologies Scale of possible witch to renewable energies Possible contribution of ‘unconventional’ oil
sources Emergent economies energy demands
RESPONSES TO INCREASING ENERGY DEMANDS
Business as usual Do nothing – fossil fuels will remain the dominant source of
energy worldwide Benefits
No investment needed in renewable energy Costs
55% increase in global energy related C02 emissions by 2030 Emissions from electricity generation will account for 44% of
global emissions by 2030
Multi-energy solution Meeting future energy demands from a mixture of
renewable, recyclable and non-renewable sources Benefits
Reduces CO2 emissions as a result of clean energy production Costs
Expensive to invest in renewable / recyclable energy Nuclear energy controversial – nuclear waste and safety of
plants
RESPONSES TO INCREASING ENERGY DEMANDS CONTD.
Energy conservation Decreasing the amount of energy used Benefits
Decrease global energy related CO2 emissions Extends time that fossil fuels can be used
Costs Likely to inhibit growth of developing countries Requires large investment from governments
globally
NUCLEAR ENERGY IN FRANCE Benefits
75% of electricity generated from nuclear power – helps to meet high energy demand
Largest exporter of electricity from nuclear power – increases GDP
Low levels of CO2 per capita Helps meet targets set by Copenhagen summit Environmentalists view (James Lovelock):
Amount of uranium needed is significantly less than coal and oil (small bottle of uranium = 200 tonnes of oil)
Amount of nuclear waste is minimal unlike 700 tonnes of CO2 produced by fossil fuels
Nuclear far cheaper while oil / coal prices will increase Costs
Nuclear waste sent to Normandy for reprocessing – 97% recycled and 3% stored and disposed
Land needs to cleared to build plants – visual pollution Danger of nuclear disaster (Chernobyl, 1986) Expensive - €15 billion for nuclear waste disposal Fear of terrorists getting hold of nuclear energy
NUCLEAR ENERGY IN CUMBRIA
Benefits Employment – 10,000 employees, 90% from West
Cumbria Attracts investment Increases local income and therefore council spending
Costs Radioactive waste Reliance on one industry – dangerous if it closes Dangerous – 21 serious incidents of accidents between
1950 and 2000 Some waste dumped in Irish sea – Irish government
pressuring Sellafield to close Visual pollution – damages tourist industry
WIND POWER Benefits
Wind is free – low efficiency is unimportant as it doesn’t coast to harness it and it is an infinite resource
Wind turbines save 4 million tonnes of carbon annually Costs
Low efficiency – only 30% of energy harnessed in comparison with 60% for coal powered plants
Unreliable – power generated can double one day to the next – may not always meet demand so need fossil fuels as backup
Long process to build wind farms – must be approved by government, councils, locals etc.
Expensive to build wind turbines – price will increase as less efficient sites will have to be used (efficient sites already used)
Environmentalist’s point of view (James Lovelock again): ‘Far too late’ for renewable energy 1 nuclear station = 3000 wind turbines On-shore wind farms damage farmland that will be needed to grow
food Ruins aesthetic (visual pollution) Inefficient
ENERGY CONFLICTS Terrorist attack on Abqaiq oil processing plant
Al Qaida terrorists tried to take over Abqaiq oil processing plant in Saudi Arabia
Attempted to drive vehicles loaded with explosives into the compound
Two hour gun battle between officials and terrorists Two terrorists and two guards killed but no damage to
plant US invasion of Iraq – possible reasons
Saddam Husain was considered a threat to the security of Western oil supplies in Middle East – by 2003 he was making deals with Russian and Chinese oil companies
Iran as an energy power 3rd largest oil reserves and 2nd largest natural gas
reserves Japan and China both import 13% of their oil from Iran Alliances developing between Moscow, Tehran and
Beijing – energy exports from Russia and Iran in exchange for Chinese goods
RADICAL NEW APPROACHES Kyoto protocol Agreements for MDCs to cut emissions and for NICs to monitor
emissions Benefits
Long term agreement to reduce global CO2 emissions Problems
NICs such as China and India had no obligation beyond monitoring and reporting emissions
USA didn’t sign protocol Cap and trade scheme (2007) Government sets a limit (cap) on carbon emissions – carbon emissions
not used can be sold as credits to companies that produce over the limit
Benefits Limits emissions in the private sector Financial motivation for companies to use less energy credits so they sell
them Costs
Companies can continue releasing high emissions by buying energy credits from lower polluting companies
RADICAL NEW APPROACHES CONTD. Green taxes In the UK, vehicle exercise duties (VED) tax vehicles according
to their level of CO2 emissions Other taxes include fuel tax and aviation tax Benefits
Encourages less polluting vehicles to be used Problems
Those who can afford the VED may use pollution vehicles anyway
Combined heat and power (CHP) Captures and regulates the waste heat produced in electricity
generation Benefits
Cuts emissions Increases efficiency of electricity generation Can use biofuels
Costs Predominantly uses fossil fuels Expensive