Energy Security

Energy Security

1. USA

   • Oil, politics and economies
     • The total contributions from the oil and gas industry to federal candidates and political parties for the 2008 US election cycle stood at over $14 miliion
       • 75% of this money went to the Republicians
         • For this funding, the Republicians should allow drilling in national parks in return
     • Oil companies as energy players
       • Republicians rejected a bill that would mean oil comapnies would be taxed over $15 billion, this would have gone on solar and wind power iniutives
         • They are pushing for more drilling to reduce prices of barrels of oil for the voters
   • Energy Security
     • Why do they have an energy crisis
       • Consumption
         • Consumes 23% of the world's oil
         • Consumes 100 times more than the poorest person
       • Reliance on imports
         • 9/11 attacks heightened fears
         • President Bush said that America needs "to end its dependancy on oil. When you're hooked on oil from the Middle East, it means you've got an economic security issue"
         • Relies on 70% of its energy on imports
       • The price of a barrel of oil has risen from below $20 in the '90s to over $150 currently
     • California
       • Energy market is completely privatised they didnn't improve the infrastucture out of fear of not gaining profit
       • Megawatt laudering
         • changing the source of the energy to change the prices
       • Deregulation of the power industry
       • In the future: 20% of its energy should come from renewable sources
         • Low-carbon standard for transportation fuels

2. China's Energy Security

   • New economic giant
     • Its economy has doubled in size in 8 years
     • Accounts for 15% of the world's energy demand
     • Large rural to urban migration - 8 million move annually
   • Energy origins
     • Coal
       • World's biggest producer and consumer of coal
         • They build 3 new coal power stations a week (on average)
         • Coal is cheap but produces high amounts of CO2
           • They are investiting in carbon capture technology
         • Accounts for over 70% of its electrcity generation
     • HEP
       • Accounts for 15% of China's energy production
         • Now that the Three Gorges Dam is complete it provides 25 gigawatts of energy
           • Number of problems
             • Displaced 2 million people
               • drowned 200 towns and villages
             • Siltation
             • Algae blooms
         • Can cause earthquakes
           • 2008 Sichuan Earthquake, for examples
   • Energy Insecurity
     • Oil
       • Largest fields have now peaked and new sources are being looked for offshore
     • Coal
       • Reserves are in the North West but the areas that need it are in the South East
     • Natural gas
       • Movement towards cleaner alternatives

3. Access to Energy and Energy Supply Player

   • Energy poverty
     • 96% of Kenyians don't have access to the grid, HEP schemes instead
     • 2.4 billion rely on traditional biomass for cooking
       • 2.4 million die from this
   • The UK and energy
     • Physical factors
       • Due to location, Britain has great potential for tidal and wave power
       • The shallow reserves of fossl fuels have been exhausted , we've hit the peak and will either have to dig depper or find an alternative
     • We rely on oil and gas from Russia, we want to low this dependancy
   • OPEC and it's role i energy supply
     • Their objective is to maintain prices, protect themselves and keep a regular supply
     • Formed in 1996, in response to US TNC activity in the area
     • Have just under 80% of the world's reserves
       • And produce about 45% of the world's oil

4. Business as usual and the Middle East

   • Predictions for the future
     • Consumption of natural gas will double by 2030
       • OIl production will increase to 1.4 million barrels a day to meet growing demand
         • New sources of less conventional oil will emerge
   • The cost of business as usual
     • Stern Review: Climate change will cost the world 5-12% of its GDP
     • Global economic costs will increase as hydrometerlogical disasters increase
     • OPEC may cause a price crash
       • And political unstability in the area