6.4c energy players have different roles in securing pathways and energy supplies Flashcards
governments
can allow companies to exploit the environment for energy supplies
can incentivise energy conservation -> fuel duties and green taxes –> 2012 July Australia introduced a carbon tax
gain revenues from TNCs that are state-owned e.g. Gazprom in Russia
many governments in Europe have been changing their energy mix towards renewables
- Germany has invested heavily in renewables after a policy change in 1990 which was further enforced by Fukushima in 2011
consumers
create demand
purchasing choices often based on price issues
if they choose to boycott certain fuel companies they can lose profits
British Gas lost more than 800,000 household customers in 2017 as a result of price increases
TNCs e.g. BP, Shell, Gazprom
respond to market conditions
supply energy and want the international trade of energy to keep flowing through established pathways
e.g. Gazprom which controls 1/3 of the world’s gas reserves and provides 25% of Europe’s natural gas
innovate and invest in new technology to sustain increasing energy demands
e. g. Shell produce around 13% of the UK’s oil and gas
e. g. Aramco in Saudi Arabia (state-owned) is the world’s biggest energy company –> produces 12.5 million barrels of oil per day
want to maximise profits
(sometimes tension with environmental groups concerning the slow progress being made by TNCs towards ‘green’ energy)
- lack of regard for risk to natural ecosystems and fragile environments e.g. from oil spills
OPEC
OPEC is a group of 14 Oil and Petroleum Exporting Countries
IGO formed in 1960
the main player in providing energy security
as it controls 81% of proven world oil reserves
produces around 45% of crude oil and 15% of natural gas
its aims are to protect the interests of member countries, stabilise oil prices and to ensure an efficient, economic and regular supply of oil.
BUT accused of holding back on oil and gas production to drive prices up
