Energy security Flashcards
Measuring energy security
Energy security index (ESI) - it assesses the extent to which a country may look forward to a reliable and affordable supply.
Risks
Physical - Natural hazards such as earthquakes disrupt supply.
Environmental - For example protests about environmental damage caused by exploitation.
Economic - Eg. Sudden rising costs or forced imports at higher prices.
Geopolitical - Political instability in the producing countries.
Levels of risk - extreme risk
ESI values less than 2.5. Most of these countries are in northern Africa and northern South America, also South Korea.
High Risk
ESI value 2.5-5.0. Countries scattered across the globe, includes Japan and USA.
Medium Risk
ESI value 5.0-7.5. A widespread category in Europe, south and southeast Asia, and Australasia.
Low Risk
ESI greater than 7.5, countries include Canada, Norway, Russia and stable middle eastern states.
Characteristics of risk
heavy importers = high risk.
Substantial reserves = low risk.
Medium sized developed country = medium risk.