resource security Flashcards
what is a resource
An economic or productive factor required to accomplish an activity, or as means to undertake an enterprise and achieve desired outcome.
Three most basic resources are land, labour, and capital; other resources include energy, entrepreneurship, information, expertise, management, and time.
Resources we will focus on in this unit are
★ MINERAL ORE (COPPER) ★
★ ENERGY ★
★ WATER ★
what is a stock resource
Stock resources are finite and non-renewable - they have taken millions of years to form and cannot be replenished over human timescales. eg. fossil fuels
what is a flow resource
flow resources are those that can be continuously replenished within human timescales, making them renewable resources. eg. water
A subcategory of flow resources are critical flow resources - these are resources that require careful human management to ensure their continued availability. eg, trees
what are resources( classfiying minerals)
all deposits of mineral resources which may be viable to extract in the future, with technological advances or an increase in the demand for the mineral.
what are reserves
Reserves are the deposits of minerals which can be extracted now, due to being economically viable (a high enough demand for companies to make a profit from the mineral) and sufficient available technology and legal entitlement to enable extraction.
what are the factors that determine the availability and classification of resources and reserves
Physical availability: the patterns and quantities of the resources around the world.
Economic viability: whether the price of the resource makes it worthwhile to extract the resource.
Political/legal access: do you have permission to extract the resources from the government? In most countries, it is the government who owns mineral resources (the ‘lower 48’ states of the USA are a notable exception, where the landowner owns the minerals) and grants permission for them to be extracted.
Environmental/sustainability concerns: can the resources be extracted without causing unwanted damage to the environment?
example of the factors affecting availability in the north sea oil industry
In the early days of the industry in the 1960s and 1970s, some of the oil and gas identified under the North Sea was not able to be extracted due to a combination of the technology of the time and the relatively low oil and gas prices. As demand for oil and gas has increased, the price has increased and this has provided an incentive for the industry to develop new technology and to invest in more expensive projects which has allowed them to access more oil and gas, thus those earlier identified resources became reserves.
what is a measured reserve
Well established reserve and measured with confidence.Sufficient tests allow grade consistency to be established. There is a 90% chance or greater that minerals of a high quality can be extracted
what is an indicated reserve
Extensive sampling provides reasonable confidence that the reserve is exploitable. Sufficient testing means the grade quality can be reasonably assumed, and there is a 50% or greater chance of the mineralisation
what is an inferred resource
Estimated based on limited sampling into the geology. Insufficient data to justify expenditure on planning an exploitation sequence. Limited information and sampling. Only a chance of 10% or greater that minerals exist and can be extracted
Possible resources
Indicative in situ information, but without sampling. Insufficient reliable data to justify exploration Unquantified deposit viability information. No sampling confidence
three main factor in determining mineral exploitation
The mineral content of the rocks- rarity of elements
Geological conditions: The presence, quality, and quantity of minerals in a given area.
Accessibility in relation to markets: Market demand, commodity prices, and the cost of extraction and transportation all impact mineral exploitation.
define physical risks
relate to the accessibility of resources available in an area , evaluated against:
the quantity, quality, physical location, accessibility, and the technology available to access the resource
geopolitical risks
conc of production in a relatively small number of countries,confidence a country has in trading with producers, the possibility of war or conflict in producing regions
what is a resource frontier
A resource frontier is an area where resources are brought into production for the first time.
Characteristics of resource frontiers
Peripheral environments
Natural environments with little human development
Extreme environments - technological challenges
May be within international territory
the artic as an example of a resource frontier
global warming has increased accessibility, incetivising investment.
BUT: still difficult to exploit:
1) remoteness as a reason for artic resource frontier
distant from south, lack of infrastructure, transport and accident management are more expensive
weather as a reason for artic resource frontier
accurate forecasts are harder to get as there is a shortage of satellites so storms and extreme cold weather can put the workers at risk
comms as a reason for artic resource frontier
gps and radio comms degrade north of 70 degrees bcos of magnetic and solar phenomena- makes navigation more complicated
