World Energy Oil Coal Gas
What are natural resources? In economics: Natural resources = commercial value = can be used to create wealth = eg. Oil, coal, gas, water, land, timber... = Real property ~ Tragedy of the commons (public natural resources)
In accounting: Natural resources = depletion
Sources: investorglossary.com & investorwords.com
What are natural resources? Natural resources are made by Nature and the energy to make them comes from geochemical, geophysical and solar energy. Humans may only modify natural resources.
Sources: School of Biological Sciences The University of Texas at Austin
What are natural resources? Natural resource takes millions of years to form naturally. They cannot be replaced once it is consumed; it will eventually be used up. The main energy sources used by humans are non-renewable. Renewable resources such as solar, tidal, wind, and geothermal power, have so far been less exploited.
Sources: Helicon Publishing is division of RM. Š RM 2009.
What are natural resources? Nonrenewable natural resources.They are found in the ground. There are fixed amounts of these resources. They are not living things, and they are sometimes hard to find. They don’t regrow and they are not replaced or renewed. They include the fossil fuels we burn for energy (natural gas, coal, and oil). In fact, they can take millions of years to form. renewable resources can regrow or be replaced within a person’s lifespan.
Sources: Helicon Publishing is division of RM. © RM 2009.
Nonrenewable and renewable Nonrenewable natural resources: - found in the ground. - fixed amounts of these resources. - not living things - sometimes hard to find - don’t regrow - not replaced or renewed - take millions of years to form They include the fossil fuels we burn for energy (natural gas, coal, and oil). Renewable resources: ﹣ can regrow ﹣ can be replaced within a person’s lifespan ﹣ never ending They include sources of power like sun and wind energy. Sources: BOOK-Renewable and non-renewable Resources: COLLEGE OF AGRICULTURAL SCIENCES • COOPERATIVE EXTENSION
How fossil fuel form? Coal is a solid fossil fuel formed
Oil is a liquid fossil fuel that is
over millions of years by decay of
formed from the remains of marine
land vegetation. When layers are
microorganisms deposited on the sea
compacted and heated over time,
floor. After millions of years the
deposits are turned into coal. Coal
deposits end up in rock and sedi-
is quite abundant compared to the
ment where oil is trapped in small
other two fossil fuels. Analysts
spaces. It can be extracted by
sometimes predict that worldwide
large drilling platforms. Oil is
coal use will increase as oil
the most widely used fossil fuel.
supplies become scarcer. Current
Crude oil consists of many differ-
coal supplies could last for 200
ent organic compounds which are
years or more. Coal is usually
transformed to products in a refin-
extracted in mines. Since the
ing process. It is applied in cars,
middle of the 20th century, coal
jets, roads and roofs and many
use has doubled. Since 1996 its
other. Oil cannot be found every-
application is declining again.
where on earth and consequentially,
Many developing countries depend on
there have been wars on oil sup-
coal for energy provision because
plies. A well-known example is the
they cannot afford oil or natural
Gulf War of 1991.
gas. China and India are major users of coal for energy provision.
Natural gas is a gaseous fossil fuel that is versatile, abundant and relatively clean compared to coal and oil. Like oil, it is formed from the remains of marine microorganisms. It is a relatively new type of energy source. Until 1999, more coal was used than natural gas. Natural gas has now overtaken coal in developed countries. However, people are afraid that like oil, natural gas supplies will run out. Some scientists have even predicted this might happen by the middle or end of the 21st century. Natural gas mainly consists of methane (CH4). It is highly compressed in small volumes at large depths in the earth. Like oil, it is brought to the surface by drilling. Sources: McKinney, M.L. and Schoch, R.M., Environmental Science, Systems and Solutions. Miller, G.T., Living in the Environment: Principles, connections and solutions.
Most sources in this project are from The World Energy Council (WEC)
BP plc.
is the foremost multi-energy
participate across the hydrocarbon
organisation in the world today.
value chain to:
WEC has Member Committees in
– Explore for, develop and produce
nearly 100 countries, including
more fossil fuel resources that
most of the largest energy-
the world needs.
producing and energy consuming
– Efficiently manufacture, process
countries. Established in 1923;
and deliver better and more
the organisation covers all types
advanced products.
of energy, including coal, oil,
– Be a material contributor to the
natural gas, nuclear, hydro, and
transition to a low-carbon
renewables.
future.
Long term rising demand
Future Supply
Despite the volatile oil prices of
Data BP monitor indicates that
2008, ranging from just over $144
as well as there being sufficient
per barrel to approximately $34,
proved reserves for around 40
demand for energy is still
years of oil and 60 years of gas
expected to rise significantly in
at today’s consumption rates.
the long term as a result of demographic and economic forces. Drivers for growth are the rapid industrialization of emerging economies and a world population that is expected to grow from approximately 6.7 billion today to approximately nine billion by 2050. The IEA estimates that world energy demand could be 45% higher by 2030, half of it coming from China and India. It estimates that meeting such demand will require around $26 trilliona of investment in supply by energy producers over the next two decades. Sources: Adapted from World Energy Outlook 2008. Š OECD/IEA 2008.
World energy supply 2007 The oil and gas industry represents 59.4% of the world’s traded primary energy supply. Hydro 6.4% Nuclear 5.6%
Oil 35.6% Coal 28.6%
Natural gas 23.8%
Sources: BP Statisical Review of World Energy 2008 * This chart shows commercially traded fuels only. Excluded are fuels such as wood, peat, animal waste, wind, geothermal and solar power generation.
Energy developments World primary energy consumption –
the US fell by 2.8%, the largest
including oil, natural gas, coal,
decline since 1982.
nuclear and hydro power – grew by 1.4% in 2008, the slowest growth since 2001. Non-OECD primary energy consumption exceeded OECD consumption for the first time. The Asia- Pacific region accounted for 87% of the world’s energy consumption growth. For the third consecutive year, coal accounted for the majority of primary energy consumption growth. Chinese consumption growth slowed for the fifth consecutive year, yet China accounted for nearly threequarters of global growth. Energy consumption among exporting regions remained robust, with above-average growth in the Middle East and Africa. Consumption in Sources: BP Statisical Review of World Energy 2008
Oil
Reserves and Resources
Oil provides 35% of global energy
Defining what to Measure:
consumption and more oil is used
There are several different cat-
today than ever before. Demand for
egories of oil, each having dif-
oil will continue to grow, primar-
ferent costs, characteristics and,
ily owing to rapid growth in
above all, depletion profiles.
vehicle ownership in developing
Some are easy, cheap and fast to
nations. Energy security concerns
produce, whereas others are the
in the oil sector are increasing,
precise opposite.
owing to questions of resource availability, supply security,
The terms ‘Conventional’ and ‘Non-
political instability and infra-
Conventional’ (or ‘Unconven-
structure difficulties. Oil prices
tional’) are in wide usage, but
are expected to remain high.
lack a standard definition, adding greatly to the confusion. Here,
Crude oil remains the most impor-
‘Conventional Oil’ will be identi-
tant primary fuel, accounting for
fied and defined to exclude the
36.4% of the world’s primary
following categories: oil from
energy consumption (without bio-
coal, shale, bitumen and Extra-
mass) (BP,2006)
Heavy Oil.
Sources: 2007 Survey of Energy Resources - World Energy Council
The regional distribution of
About 62% of the global reserves
‘estimated ultimate recovery’ of
are located in the Middle East,
conventional crude oil, comprising
about 13% in North and South
cumulative production, reserves
America and about 10% in the CIS
and resources, is very uneven
countries.
(Fig. 2-1). The Middle East has the highest EUR. About 65% of
Cumulative crude oil production
North America’s EUR has been
until the end of 2005 reached 143
recovered so far. In the CIS
billion tonnes - half of it was
countries, this applies to about
produced within the last 23 years.
37 % and in the Middle East to about 24% of the EUR. The OPEC countries have an EUR of about 206 billion tonnes, accounting for more than 50 % of the global EUR, of which only about 28% has been recovered so far. The OECD countries have an EUR of only 74 billion tonnes, of which nearly 62% has already been recovered.
Oil Price The reasons for the currently very high oil price, - increasing worldwide demand for
- lack of additional production
oil, after some years of stagna-
capacity in most of the produc-
tion, caused by prospering
ing countries;
economies and strong demand for oil in the USA, China and India; - supply disruptions caused by
- the weak US Dollar; - speculation in the oil business
strikes in leading supplier
due to low interest rates on the
countries (Venezuela, Nigeria,
capital markets.
Norway) and terrorist attacks in Iraq, as well as natural disas-
It should be noted in addition
ters (e.g. hurricanes in the
that production is not synonymous
Gulf of Mexico);
with supply, namely the amount available for consumption.
- political instability in the Middle East and the Yukos affair in Russia, as well as a fear of terrorist attacks; Sources: 2007 Survey of Energy Resources - World Energy Council
Gas Global gas consumption grew by
Driven by annual economic growth
2.5%, below the 10-year average.
estimated to average 3.4% during
Chinese consumption grew by 15.8%,
the period 2004-2030, world energy
and China accounted for the larg-
demand could grow by about 1.6%
est incremental growth in world
p.a. on average by 2030, according
gas consumption.
to the International Energy Agency (WEO 2006). This means that by
Global gas production grew by
then the world will need about
3.8%, above the 10-year average of
half as much more energy than is
3%. Strong growth was driven by
used today. Fossil fuels are
the US.
assumed to remain the dominant sources of primary energy, accounting for close to 83% of the overall increase between 2004 and 2030. It currently accounts for 23.5% of the world energy mix and ranks third, behind oil and coal.
Sources: BP Statistical Review of World Energy 2008
Sources: World Energy Council 2007 Survey of Energy Resources
Exploration successes
Gas reserves are geographically concentrated
Since 1980, proven world natural
While about 73% of gas reserves
gas reserves have grown at an
are concentrated in two areas –
annual average of 3.4% (compared
the Middle East and the CIS - the
with 2.4% for oil).
geopolitical distribution of gas
The fast-growing economies in Asia
reserves is rather similar to that
(including China and India), the
of oil. With nearly 90 tcm, the
Middle East, Africa and even Latin
OPEC countries have about half of
America, promise gas demand growth
total reserves, compared with 75%
rates of 3-4% p.a. by 2020.
for oil.
Sources: World Energy Council 2007 Survey of Energy Resources
Coal Global coal consumption slowed in 2008, rising by a below-average 3.1%, yet coal remained the fastest-growing fuel in the world for a sixth consecutive year. In China (the world’s largest consumer, with a 43% share), consumption grew by 6.8%, below the 10-year average but still sufficient to account for 85% of global growth. In liberalized energy markets, coal prices in 2008 increased more rapidly than other fossil fuels; consumption growth outside China was a weak 0.6%. Growth was below the 10-year average for every region but South and Central America and Africa.
Sources: BP Statistical Review of World Energy 2008
Reserves
Energy demand
Amongst the major energy sources,
Fossil fuels will continue to
coal is once again the most rap-
provide more than 80% of the total
idly growing fuel on a global
energy demand well into the
basis. While questions regarding
future, and – according to the
the size and location of reserves
International Energy Agency – coal
of oil and gas abound, coal
will see the largest demand
remains abundant – and broadly
increase in absolute terms, from
distributed around the world.
some 2 772 mtoe in 2004 to 4 441
Economically recoverable reserves
mtoe in 2030. The greatest
of coal are available in more than
increase in the demand for coal
70 countries worldwide, and in
will be in the developing coun-
each major world region. With
tries, with 86% in developing
authorities reporting some 850
Asia, where reserves are large and
billion tonnes of coal as cur-
low-cost. India’s coal use is
rently recoverable (the geological
expected to grow by some 3.3% per
resource is far larger), it is
annum to 2030, more than doubling
clear that coal will be with us
in absolute terms. OECD coal use
for many decades, if not centu-
is likely to grow modestly.
ries, to come.
Energy Security A further key factor is coal’s relative affordability and lack of price volatility. Coal has consistently outperformed oil and gas on an equivalent-energy basis, and despite a potential cost of carbon, coal is likely to remain the most affordable fuel for power generation in many developing and industrialised countries for several decades. Events in 2006 led to oil prices rising to around US$ 80/bbl and gas prices spiking to new highs, underlining coal’s key role in power generation worldwide.
Sources: World Energy Council 2007 Survey of Energy Resources
Definitions Reserves
Consumption
The volume within the proved
Energy consumed within the coun-
amount in place that can be recov-
try, including imports but exclud-
ered in the future under present
ing amounts re-injected, flared
and expected local economic condi-
and lost in shrinkage.
tions with existing available technology.
Production Where available, gross and net (marketed) volumes are given, together with the quantities re-injected, flared and lost in shrinkage.
Sources: World Energy Council 2007 Survey of Energy Resources
Australia Area Population GDP/capita
7 692 024 km² (5.2%) 20.4 million (0.33%) US $36 226
Australia is endowed with very substantial coal resources, with its proved recoverable reserves ranking 4th in the world.
Total primary energy mix Reserves (Share of the world)
Production (Share of the world)
Consumption (Share of the world)
Oil
Coal
Million barrels
Million tonnes
Natual gas
31%
45%
2 457
76 200
907
(0.3%)
(9.0%)
(1.4%)
Billion cube metres
19%
197.1
218.5
40.0
(0.6%)
(6.9%)
(1.4%)
337.6
55.8
24.9
(1.1%)
(1.7%)
(0.9%)
Brazil Area Population GDP/capita
8 514 877 km² (5.7%) 184.2 million (2.83%) US $8 603
Brazil has considerable reserves of subbituminous coal.
Total primary energy mix
Oil
Coal
Million barrels
Million tonnes
43%
7%
Natual gas Billion cube metres
8%
Reserves
12 623
7 059
365
(Share of the world)
(1.0%)
(0.8%)
(0.2%)
Production (Share of the world)
Consumption (Share of the world)
657.0
2.3
11.3
(2.3%)
(0.1%)
(0.4%)
830.0
13.4
22.0
(2.4%)
(0.4%)
(0.8%)
Canada 9 984 670 km² (6.7%) 32.3 million (0.5%) US $338 614
Area Population GDP/capita
Western Canada dominates coal production, accounting for over 95% of the total. About 40% of Canadian coal production, principally metallurgical, is exported. Around 90% of Canadian coal consumption is used for electricity generation, 7% in the steel industry and 3% in other industries.
Total primary energy mix
Oil
Coal
Million barrels
Million tonnes
36%
10%
Natual gas Billion cube metres
29%
Reserves
19 762
6578
1 634
(Share of the world)
(2.2%)
(0.8%)
(0.9%)
Production (Share of the world)
Consumption (Share of the world)
1 195
36.9
174.4
(4.1%)
(1.2%)
(6.2%)
847.9
32.3
96.7
(2.6%)
(1.0%)
(3.2%)
China 9 639 688 km² (6.5%) 1307.6 million (19.67%) US $5 325
Area Population GDP/capita
China is a major force in world coal, standing in the front rank in terms of reserves, production and consumption. China's oil reserves are by far the largest of any country in Asia: oil output is on a commensurate scale, with the 2005 level accounting for about 40% of the regional tonnage. China exported 8.1 million tonnes of its crude oil in 2005.
Total primary energy mix
Oil
Coal
Million barrels
Million tonnes
19%
63%
Natual gas Billion cube metres
2%
Reserves
18 052
7 059
3 000
(Share of the world)
(1.3%)
(0.8%)
(1.1%)
Production
1 366.2
1 282.4
67.9
(Share of the world)
(4.8%)
(41.1%)
(2.4%)
Consumption
2 825.8
1 313.6
69.5
(Share of the world)
(9.3%)
(13.5%)
(2.3%)
Egypt Area Population GDP/capita
997 739 km² (0.66%) 70.7 million (1.14%) US $5 097
Egypt has the sixth largest proved oil reserves in Africa, with over half located in its offshore waters.
Total primary energy mix Reserves (Share of the world)
Production (Share of the world)
Consumption (Share of the world)
Oil
Coal
Million barrels
Million tonnes
50%
1%
Natual gas Billion cube metres
45%
4 200
21
2 152
(0.3%)
--
(1.2%)
259.2
0.1
46.5
(0.9%)
--
(1.6%)
237.3
1.0
38.4
(0.8%)
(<0.05%)
(1.1%)
India Area Population GDP/capita
3 201 446 km² (2.3%) 1 091.8 million (17.63%) US $2 317
Coal is the most abundant fossil fuel resource in India, which is the worldâ&#x20AC;&#x2122;s third largest coal producer.
Total primary energy mix Reserves (Share of the world)
Production (Share of the world)
Consumption (Share of the world)
Oil
Coal
Million barrels
Million tonnes
Natual gas
24%
38%
5 720
58 600
1 055
(0.4%)
(6.7%)
(0.6%)
Billion cube metres
5%
292.4
181.0
31.5
(1.0%)
(5.8%)
(1.0%)
1 003
212.9
40.1
(3.3%)
(6.5%)
(1.4%)
Iran Area Population GDP/capita
1 628 750 km² (1.1%) 68.5 million (1.09%) US $10 570
Iran was a founder member of OPEC in 1960. In 2005, about 60% of Iran's crude oil output of 3.9 million b/d was exported, mostly to Europe and Asia.
Oil
Coal
Million barrels
Million tonnes
48%
1%
Reserves
133 150
1 386
28 080
(Share of the world)
(11.2%)
--
(15.7%)
Production
1 606.4
1.5
111.9
(Share of the world)
(5.4%)
--
(3.8%)
Total primary energy mix
Consumption (Share of the world)
Natual gas Billion cube metres
50%
617.9
1.3
113.0
(1.9%)
(<0.05%)
(3.8%)
Japan Area Population GDP/capita
377 930 km² 127.8 million US $30 315
Oil
Coal
Million barrels
Million tonnes
Total primary energy mix
48%
21%
13%
Reserves
44
355
51
(Share of the world)
--
--
--
Production
6.2
0.8
3.3
(Share of the world)
--
(<0.05%)
--
Consumption (Share of the world)
(0.25%) (1.88%)
Natual gas Billion cube metres
1 839
125.3
90.2
(5.8%)
(3.9%)
(3.1%)
Norway Area Population GDP/capita
323 802 km² (0.22%) 4.6 million (0.071%) US $50 235
North Sea waters has brought the country into No. 1 position in Europe (excluding the Russian Federation), in terms of oil in place, proved reserves and production.
Total primary energy mix Reserves (Share of the world)
Production (Share of the world)
Consumption (Share of the world)
Oil
Coal
Million barrels
Million tonnes
43%
2%
Natual gas Billion cube metres
16%
8 163
5
2 313
(0.7%)
--
(1.7%)
932.9
3.2
89.7
(3.0%)
--
(3.0%)
81
0.4
4.3
(0.3%)
(<0.05%)
(0.1%)
Russian Federation Area Population GDP/capita
17 098 242 km² (11.5%) 143.5 million (2.09%) US $13 182
The Russian oil industry has been developing for well over a century. Russia exports more than half of its oil production.
Oil
Coal
Million barrels
Million tonnes
21%
16%
Reserves
79 400
157 010
47 814
(Share of the world)
(6.4%)
(18.5%)
(25.2%)
Total primary energy mix
Production (Share of the world)
Consumption (Share of the world)
Natual gas Billion cube metres
54%
3 642
148.2
607.4
(12.6%)
(4.7%)
(20.6%)
987.7
93.5
425.7
(3.2%)
(3.0%)
(15%)
Saudi Arabia Area Population GDP/capita
2 149 690 km² (1.4%) 23.1 million (0.38%) US $22 852
The Kingdom has been a leading oil producer for more than 40 years and currently has by far the world's largest proven reserves of oil: at end2005 these represented about 22% of the global total. It exports about three- quarters of its crude oil output; major destination regions are Asia, North America and Western Europe.
Oil
Coal
Million barrels
Million tonnes
64%
0%
Reserves
264 250
--
7 153
(Share of the world)
(21.3%)
--
(4.0%)
Production
3 800.7
--
74.4
(Share of the world)
(12.6%)
--
(2.6%)
749.7
--
74.4
(2.5%)
--
(2.6%)
Total primary energy mix
Consumption (Share of the world)
Natual gas Billion cube metres
36%
South Africa 1 221 037 km² (0.82%) 46.9 million (0.73%) US $9 767
Area Population GDP/capita
Coal exports are equivalent to about 30% of South African output and are mainly destined for Europe and Asia/Pacific.
Oil
Coal
Million barrels
Million tonnes
Total primary energy mix
12%
72%
3%
Reserves
15
30 408
362
(Share of the world)
--
(5.7%)
--
Production
7.3
139.6
2.9
(Share of the world)
--
(4.8%)
--
200.4
97.7
--
(0.7%)
(3.1%)
--
Consumption (Share of the world)
Natual gas Billion cube metres
United Kingdom Area Population GDP/capita
242 900 km² 60.2 million US $35 634
(0.16%) (0.91%)
The UK exported 64% of its total oil output in 2005; 64% of such exports were consigned to EU countries and 26% to the USA.
Total primary energy mix Reserves (Share of the world)
Production (Share of the world)
Consumption (Share of the world)
Oil
Coal
Million barrels
Million tonnes
Natual gas
37%
16%
3 390
155
343
(0.3%)
--
(1.2%)
Billion cube metres
36%
597.9
10.3
72.1
(2.0%)
(0.3%)
(2.5%)
625.6
38.2
90.9
(2.0%)
(1.2%)
(3.1%)
United States of America Area Population GDP/capita
9 629 091 km² (6.5%) 296.3 million (4.52%) US $45 725
The United States has one of the largest and oldest oil industries in the world. Although its remaining recoverable reserves are dwarfed by some of the Middle East producers, it is the third largest oil producer, after Saudi Arabia and the Russian Federation. The USA exported 41 000 b/d of crude oil in 2005, almost all to Canada.
Oil
Coal
Million barrels
Million tonnes
40%
24%
Reserves
30 460
238 308
6 823
(Share of the world)
(2.4%)
(28.6%)
(3.4%)
Production
2499.2
587.7
545.9
(Share of the world)
(8.0%)
(18.7%)
(18.8%)
Consumption
7 548.2
573.2
652.8
(Share of the world)
(23.9%)
(18.1%)
(22.6%)
Total primary energy mix
Natual gas Billion cube metres
22%
JoJo Wing Yu Ho copyright@2009