Energy security
- Created by: ashleighholmes23
- Created on: 04-06-16 12:34
Russia
Russia
- Dependent on gas exports
- Energy rich country = vast surplus over demand
- Economic power due to oil and gas
- Super power & geopolitical influence
- Increasing Russia's power nationally and internationally
- Re-asserted Russia's power & influence over past Soviet States
Gas supply - Russia's weapon?
- 2004 - Ukraine's government changed to pro-western (capitalist).
- 2006 - Ukraine gas cut off by Gazprom
- Russia x4 price & Ukraine government refuced to pay
- Ukraine owed £770 million
- 2008 - Gazprom cut supplies by 50% as Ukraine looked to join NATO & EU.
- Russia lost 1/3 demand from EU market
Europe
Europe's dependency on Russia
- Russia supplies 30% Europe's gas - most piped through Ukraine 15%
- When Gazprom shut down pipeline gas fell by 40% to Europe
- Countries that rely on Russian gas could suffer economically if gas cut
Europe's energy security
- Gazprom relies on income from gas exports to Europe
- Cold War - supply was stable
- Gazprom helping secure Europe's pathways - bypassing Ukraine & Belarus
Nord Stream Pipeline - Baltic Sea no transit countries reducing political interference (2013 gas shipped directly to Germany).
South Stream Pipeline - Black Sea Russia to Bulgaria
EU Nabucco Pipeline - Caspian Sea & Central Asia across Turkey 5% demand (SSP conflict)
OPEC Nations
Organisation of Petroleum Exporting Countries
- Formed 1960
- Control production & distribution of oil in oil-producing countries
- Protect interests of oil producers
- Saudi Arabia & UAE focusing on solar power - lower costs than oil
- Venezuela - HEP 25% exports but drought and famine means no water to power the plants
OPEC's role in energy supply
- 78% world reserves
- 45% world crude oil
- 18% world natural gas
- 2006 - 900,000 million barrels of oil
- Set oil production quotas for member countries in response to economic growth rates & supply/ demand condition
Price of oil
- Price depends on price on free market (supply and demand) & quality of oil produced
- Rise since 2002 due to demand from developing countries, reluctance to increase supply due to risk of price crash, reduced reserves therefore more costly to exploit & increasing demand for oil within OPEC member nations.
- Security Premium = extra cost built into price of oil to allow for any disruption of supply - rises when geopolitical tensions are high & spare production capacity is low.
Advantages & disadvantages of OPEC
OPEC Members:
Advantages
- Collectively control supply therefore influence the price
- Able to maximise profits for producers & if state owned increase GDP
- Political power
Disadvantages
- High oil prices means supply must be kept relatively low therefore income is limited
OPEC consumers
Advantages
- Stable prices increases reliability of supply
Disadvantages
- Commodity traders don't control prices
- OPEC members always looking to sell at highest price
- Conflict impacts supply (mainly cost)
USA's energy insecurity
Energy problems the US faces
- 70% reliance on oil imports
- 46% oil from overseas
- Large demand - average US households uses 11,700kWh per year
- Oil use in every sector of economy - expensive
Why is energy insecurity growing?
- Increasing affluence - western lifestyle
- Terrorism - World Trade Centre national security threatened
- Middle East increase price from $60 per barrel in 2004 to $140 in 2008
- US accepts the price due to high demand and high dependency
- Reserves being depleted oil 40 years left & coal 65 years left
- Global demand will rise by 50% by 2030
Future of US energy security
- Organisation for economic cooperation and development - policies between former communist countries & developed industrial countries.
- Shale gas
Shale gas in the US
- 1.6% GDP in 2011
- Reuction of nuclear pwoer
- Horizontal drilling & hydraulic fracturing
- Employment in Alaska, Louisianna & New Mexico
- Decentralisation of energy production - avoiding geopolitical tensions
- Increased domestic production - reduce dependence on imported energy
- Louisianna oil spill 88,000 gallons of oil - environmental damage
UK's energy security
Coal
- 28% UK electricity production
- EON plans to build 2 new coal-fired power stations to replace one old one
- New ones will be 20% cleaner
- However the world development movement says these 2 power stations will still output more CO2 than Ghana
- Carbon capture & storage - very expensive but able to remove 90% CO2 from power station emissions
Nuclear
- Loss of control over future energy - worries politicians
- All nuclear power stations closed by 2023
- Britain becoming increasingly reliant on imported oil & gas
Friends of the Earth
- UK is able to meet needs through renewables, efficiency & cleaner carbon technologies
- Nuclear is expensive, dangerous & radioactive waste disposal raises environmental concerns
- Investment focused on renewable not recyclable
Physical factors affecting UK's energy security
Location/ Geography
- Between Atlantic & North Sea
- River Severn 2nd highest tidal range in the world - 14 metres
- Barrage across the Severn cost £15 billion - Wales & England 5% demand
Geology
- UK oil, gas & coal reserves have all peaked
- Need to import to meet demand
- Shallower resources of fossil fuels almost exhausted
- Other difficult & expensive to extract
Exploiting the Arctic
Physical factors
- USGS claims Arctic contains 25% world's unexploited oil & gas - match Saudi Arabia
Economic factors
- BRICs demand more oil - price per barrel continues to increase
- $70 per barrel then Arctic will be viably sound to exploit
UN Law of the Sea Convention
- USA (Alaska), Denmark, Norway, Russia & Canada
- Russia keen to exploit 200 mile zone - rejected by UN 2001
- Decide what happens to Arctic by 2020
Lomonosov Ridge
- Greenland & Russia
- Russian submarines placed flag in 2007
- Took geological samples to prove part of Russian continent
Middle East energy security
Security
- All oil=producing countries in Middle East are members of OPEC
- 71% of 1000 billion barrels of oil reserves
- 83% by 2025
- Only remaining major reservoir of oil reserves
- All major economies depednent on Middle East - 76% Japan, 26% Western Europe & 21% USA
Security & political instability
- Abqaiq, Saudi Arabia
- Only oil-producing country with excess capacity
- Terrorist attack Abqaiq oil-processing plant - 6.8 million barrels per day hub of 12,000 miles of oil & gas pipelines.
- Abqaiq directly exposed - vulnerable to attack
Oil Companies - TNCs
Exxon Mobil
- One of the world's largest energy companies
- Influence US government to give access to federal land - nature reserves & national forest
- Shale gas - exploring in Gernamny - 90% imported energy
Chevron Texaco
- Influence on all energy issues
- Arctic National Wildlife Refuge Alaska - Republicans (only exploit once demand increases & deemed socially acceptable) & democrats (exploit ANWR before demand increases)
British Petroleum
- Outlook 2016 - 2035
- Gas is the fastest growing fossil fuel via US shale gas
- Oil demand will continue to increase via Asian transport networks
- Oil Deep Water Mexico - cost & tech challenging 2010 oil spill pollutes seabed
Western Europe
- Switzerland & Germany phase out nuclear
- France continues to construct more nuclear power plants - 75%
- Tech fix - carbon capture & storage, catalitic reduction
Closing the energy gap options
- Shale gas - Exxon Mobil in Germany
- Chemical & groundwater pollution
- Bioethanol - increasing food costs - torilla wars
- Solar power - 15% Europe by 2020
Risks to North America's energy security
- Growing dependence on China & India for oil imports - increasing competitive price
- Control emissions making increasing production politically difficult
- Choke points in trade routes & terrorism
- Bioethanol - importing maize & oilseed **** from Mexico - subsidies for biofule production
- Tortilla wars via increase in price
- Unconventional sources - Canadian tar sands - boreal forest destruction - 5 barrles of water for 1 barrel of oil
US Energy future
- Organisation for economic cooperation and development - policies between former communist countries & developed industrial countries.
- Shale gas
China's energy security
China's economics
- 1989 Open Door Policy
- 1990's individuals able to accumulate own wealth by producign goods & services without interference of state government
- Largest companies state-owned - profit - focus spending on education & healthcare
Energy secure
- Biggest producer of coal in the world
- 70% supply from coal (electricity)
- China holds 3% world oil reserves
- Can afford to import oil from Middle East
- HEP 16% supply - 3 Gorges, aim to have dams on all major rivers
Energy insecure
- Coal - 70% supply at the moment therefore very high dependence on most heaviliy polluting fossil fuel
- Oil - China's oil fields have reached their peak, Tarim Basin failed to attract investment due to rural western location
- Oil exploitation in South China Sea - conflict with Vietnam & Philippines
- Natural gas - very expensive & difficult to build pipelines from gas fields in Western China
Africa's energy poverty
Energy poverty = when country has insufficient acces to reliable sources of power
Energy Poverty in Africa
- 1.6 billion people have no access to electricity
- 80% live in rural areas OR urban slum dwellers
- Biomass kills 2/5 million women & children per year
- Lung conditions due to smoke from stoves
- Limits women's engagement with education & employment
Micro-hydro, Kenya
- Mbuiru village
- Tungu-Kabri Micro-Hydro power project (UN Devlopment Programme)
- Small-scale - only benefits 1000 people
- Cheap
- Sustianable
- Light saves time & allows locals to open smal businesses - entreprenuership
Canada's Tar sands
Tar sands = Oil sands, naturally occuring mixtures of water, sand & clay - Very dense viscous form of petroleum (bitumen)
Frontier hydrocarbons = Grades of oil that are inferior to conventional sources - Bitumen VS crude
Canada's oil sands
- 1 million barrels per day in 2003
- 5 million barrels per day in 2030
- Increasing oil prices will attracted TNCs (BP, Shell & Exxon Mobil) to invest in oil sands
Benefits of tar sands
- Alternative source when conventional unavailable for geopolitical or physical reasons
- 16% North America demand for oil by 2030
- Vital to Canada's economy 20% total exports in 2007
Costs of tar sands
- Expensive to extract - $15 bitumen $2 crude
- Energy intensive - 3 barrels crude for 1 tar sands
- Alberta Environment Institute - large source of GHG
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