Energy Case Studies

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Note by , created almost 6 years ago

Energy Note on Energy Case Studies, created by emmajackson95 on 05/01/2013.

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Page 1

India- Fast becoming one of the world's largest energy consumers.- Very few people with access to clean and efficient energy systems.- 70% of the population living in rural areas.- Animal dung and wood is burned for indoor cooking.- Many woman experience health problems from this.

UK- 5 million rural households disconnected from the mains gas network.- Liquefied Petroleum Gas (LPG) is used as a fuel source but recently there have been price spikes.- The winter heating allowance paid to pensioners has been a good indicator of energy poverty in the UK.

Cost?The pipeline is thought to cost 7.9 billion euros however many top-down projects exceed their budgets. New estimates predict 14 billion euros.

Where?Gas pipeline from Asia to Europe, connecting the rich Middle Eastern resources and the Caspian area to the Western market. Pipeline is 1,300km running from the Turkish-Bulgarian border to Baumgarten in Austria.

When?The pipeline is due to begin construction in June 2013 and be complete by 2017, however this may change depending on competition from other pipelines.

Why?Central and Western Europe is likely to face energy shortages in the next 20 years, combined with price spikes due to the finite nature of fossil fuels.

Problems?- The pipeline runs the risk of overlapping the South Stream pipeline, which is backed by Gazprom.- Sources of gas for the pipeline have not been confimed yet although Azerbaijan is being targeted. Gazprom has already began negotiations here.- Turkey is a transit nation for the Caspian gas to get to Europe, so is demand a discount price of 15%.- There are many geopolitical concerns over the stability of Eastern European nations.

Relations?Japans $7 billion investment into the pipeline has allowed it to strengthen its relations with Russia. China will have a pipe stemming from the ESPO and as a 'sweetener,' Russia has increased oil exports to China by rail to 300,000 barrels a day. Russia is wary of China, as it is viewed as a potential threat.

What?A pipeline connecting Japan and China to Russia's gas and oil fields in Eastern Siberia.

Human problems:- Oil leaks into Lake Baikal, Russia can cause health problems from water pollution.- Increasing risk of energy insecurity from geopolitical tensions. E.g. 2006 and 2008 Russia-Ukraine disputes led to a shortage of gas supplies to Western Europe, as the Ukraine is the transit state.- NIBMY attitude from route taken.- Increasing initial costs.- Rise in the price of steel.

Physical problems:- Route has to be adapted due to the pipeline going through an area on the Chinese border where the last remaining Amur leopards live.- The route has also been altered to avoid the tip of Lake Baikal, a UNESCO protected site.- The pipeline could be built on permafrost, which is difficult to drill in to.

Gazprom- Supplies 92% of Russia's gas- Controls around 1/3 of the world's gas reserves- Sole supplier of 8 nations- The Russian Federation owns 50% of Gazprom's shares- Gazprom provides 25% of the EU's natural gas.

Organisation of the petroleum exporting countriesA group of nations where for the majority, oil is their main or only export and is crucial for their economic development and growth. Money is made from 'petrodollars.'

IranUEASaudi ArabiaNigeriaKuwaitQatarIraqIran AlgeriaLibyaVenezuela

Aim: To ensure fair and stable prices for produces and an efficient, economic and regular supply for consumers.

Role:Oil production quotas are set for members in response to economic growth rates and demand-and-supply conditions. E.g. If demand increases, oil production increases.

Decreases in production has a massive impact for consumers - In 2008, there was a huge price spike for oil, particularly in the USA where the dollar had also decreased. Nigeria's oil production declined by 25% due to local militancy and Israel threatened to attack Iran.

What?8 nations form part of the Arctic region and are keen to exploit the oil and gas reserves that can be found there. However, it is unclear who owns these resources and the UN panel hope to reach a decision by 2020.

Why?The US Geological Survey estimates that 25% of the world's unexploited oil and gas reserves can be found in the Arctic. Around 160 billion barrels are thought to be available, and with increasing demand particularly from the BRICs, this is needed to decrease oil prices.

Players and actions:- Greenpeace: dispatched a ship to highlight concerns of exploiting the Arctic region.- Alaskan National Wildlife Refuge: campaigning against the drilling for fossil fuels since the 1970s, in order to conserve their ecosystems.- Greenland: wants to move away from fishing, tourism and hand-outs from Denmark by exploring reserve potential.- Russia: attempted to claim sovereignty by placing a titanium flag on the seabed in 2007. Russia believes the underwater mountain range beneath the North Pole is an extension of Russia's land mass.- Canada: in 2007, it announced plans to build a fleet of patrol boats in the Northwest passage, opened due to ice melt. Canada has also tried to find evidence to argue against Russia's claims.- USA: energy security could increase if Canada gets a share of the Arctic's reserves.

Environmental impacts of exploitation:- Extreme weather conditions could add to the risk of drilling- Widespread melting of the ice sheet could mean icebergs become a threat to exploration rigs- The focus is taken away from carbon neutral renewable energy resources- The discovery of more oil supplies increases future carbon emissions

Energy Poverty: India Vs UK

Nabucco Pipeline

Eastern Siberian Pacific Ocean Pipeline (Gazprom)

OPEC

Race for the Arctic