6.2- Consequences of the increasing demand for energy Flashcards
What is energy security
the uninterrupted availability of energy sources at an affordable price.
What is long-term energy security
timely investments -> supply in energy sources that match economic developments and environmental needs.
What is short-term energy security
focuses on the ability of the energy system to react promptly
to sudden changed in the balance between energy demand and energy supply.
What are the 4 aspects of energy supply
Availability, Accessibility, Affordability and Reliability
What is energy intensity?
A measure of how efficiently a country is using its energy - calculated as units of energy used per unit of GDP
How is energy consumption expressed?
Per capita in terms of
- kg of oil equivalent per year
- gigajoules per year
- megawatt hours per year
What is energy mix?
The combination of different available energy sources used to meet a country’s total energy demand, and important component of energy security.
What is consumption of energy rising?
Due to development, rising living standards and population growth
Name the 3 energy sources used to generate electricity
-non-renewable fossil/ carbon fuels
-recyclable fuels
-renewable energy
What factors affect access to and consumption of energy resources?
physical availability (domestic vs imports)
cost (physical exploitation, processing, delivery)
technology
public perception (based on level of economic development and standards of living)
climate (colder places need more heating)
environmental priorities
What is an energy pathway?
The route taken by any form of energy from its source to its point of consumption
Where do different players fit on the spectrum of energy supply and demand?
Energy supply - energy companies, governments of energy producing countries (OPEC)
Energy transport - TNCs, shipping companies, pipeline controllers
Energy demand - TNCs, energy companies, governments, consumers
What is energy consumption measured in
- Equivalent kilograms of oil per year (Kgoe/yr)
- Gigajoules per year (GJ/yr) or Exajoules (EJ/yr)
- Megawatt hours per year (Mwh/yr)
What does a high energy intensity
indicates a high price or
cost of converting energy into GDP
Name 6 factors the consumption of energy depends on
-physical avaliability- are energy sources avaliable within country or do they have to be imported - if imported, ^ costs -> decreases energy consumption
-technology- modern tech helps exploitation of energy resources that are hard to access -> ^ energy consumption
-cost - low energy costs ^ energy consumption
-economic development - more developed the country -> less sensitive to energy costs -> ^ energy consumption
-climate - ^ consumption in countries with extremes of heat & cold
-environmental priorities - green energy -> decreased consumption
Who are the 5 major players in the world of energy?
TNCs
OPEC (Organisation of Petroleum exporting Countries)
consumers
governments
energy companies
What is the role of TNCs in the supply and demand of energy?
explore, exploit and distribute energy resources -> consumers
can choose how much to charge for energy -> vary their prices for different consumers
-some are state-owned - these can exert global influence
e.g. - Shell
Name 3 parts of the energy mix
- Non-renewable fossil fuels like oil, gas and coal.
- Recyclable fuels like nuclear energy and general waste.
- Renewable energy like wind, solar and geothermal
What is a primary energy source
it produces energy using a raw material
-e.g, coal, oil, natural gas
What is the role of the OPEC in the supply of energy?
group of 13 countries that work together to influence supply & price of oil
aims to stabilise oil market
in competition with USA
Name 3 reasons why TNC’s are the most prominent energy players
- Some TNCs have more economic value than a small country, enabling the company to take action & invest in large-scale projects that a country may not afford.
- TNCs can bypass political tensions and access sources otherwise restricted to
other countries. In certain parts of the world, an MEDC trying to help to exploit an energy source in an LEDC could be seen as a direct threat to the LEDC. - TNCs may be inclined to invest in local infrastructure, logistics and development of workers’ villages. This benefits all; the TNC benefits from faster transport links and a
happier workforce, whilst the government receives ‘free’ investment.
Explain 4 negatives of TNC’s in terms of there involvement as energy players
- may encourage environmental
degradation
-could exploit workers
-unsustainable transportation (e.g. tankers liable to oil
spills).
What is the role of the OPEC in the supply of energy?
Permanent IGO - 12 member countries who own between them 2/3rds of the world’s oil reserves
- can control amount & prices of gas & oil entering global market
What is the role of governments in the supply and demand of energy?
try to secure energy supplies for their country
influence sourcing of energy for geopolitical reasons
provide legislation on emissions levels
What is the role of consumers in energy demand?
They create demand - purchasing choices often based on price/cost issues
- largely passive players in determining/fixing energy prices
Consumers create demand with purchasing choices usually based on price. As a country
becomes richer and more educated, the population can change their shopping habits to
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reflect their needs: locally sourced, environmental friendly, reliable energy supply during
winter and extreme weather.
For example, lots of energy companies now have tariffs on imported or non-renewable
sources to reduce energy insecurities or carbon-offset their energy. Here, money raised on
non-renewable energy can fund environmental work such as afforestation, research into
carbon capture and storage, etc.. If consumers change their spending habits and only use
these tariffs then companies will be encouraged to move towards more green energy.
Consumers can have an impact on TNCs.
Name 3 reasons why there is a mismatch between the supply and demand for fossil fuels (gas, oil, coal)
-inequality in wealth & development
-natural resource supplies
-industrialisation
How are supply and demand balanced/unbalanced for each of the 3 fossil fuels?
COAL: most of consumers are producers, so not a large mismatch. This reflects the fact that coal is characterised by high transport costs despite low energy density
OIL: main producers OPEC countries, mismatch between production and usage, high demand for it as a transport fuel
GAS: production dominated by USA and Russia, leading producers are often also consumers
Name the 3 problems with achieveing energy security
-fossil fuel supply - mismatch between supply & demand for fossil fuels -> due to ineuqality in wealth, development, resource supplies
-places with no oil require it to be transported -> insecurities, tensions
-energy pathways- ways of transporting energy between countries
->pipelines are efficient but depend on international agreements
->oil tankers - transport oil but choke points can get blocked -> oil prices ^ -> political tensions ^
-e.g. Ukraine = choke point in EU supply of oil -> most pipelines from Russia run through Ukraine -> war -> insecure supply for EU
-political conflicts -> can limit energy security -> military conflict can destroy infrastructure -> restricts flow of energy from source -> use
-disagreements -> limits energy security
-e.g. russia have political sanctions -> has caused shortages for europes electricity supply
How can political conflicts impact achieveing energy security
-political conflicts -> can limit energy security -> military conflict can destroy infrastructure -> restricts flow of energy from source -> use
-disagreements -> limits energy security
-e.g. russia have political sanctions -> has caused shortages for europes electricity supply
