Energy resources in the European Union: Reasons to enhance energy supply security

Transcription

1 AARMS Vol. 7, No. 4 (2008) SECURITY Energy resources in the European Union: Reasons to enhance energy supply security EDINA DOBOS Miklós Zrínyi National Defence University, Budapest, Hungary Energy related questions, such as supply security and energy driven external relations have become hot issues both on national and community level in Europe. Main driver is that global energy consumption of all fuels except nuclear one accelerated in the first years of the 21st century compared to the previous years, and world energy consumption is projected to expand by 50% from 2005 to At the same time, resources are limited. Non-renewable fuel reserves amounted to approx. 39,100 EJ at the end of Additionally, resources of non-renewable fuels were estimated to 504,200 EJ. At the same time EU-27 possesses only 3% of the world s energy volume in non-renewable energy reserves. Since 2004 the EU's energy production has been declining. Declining energy production compared to expectedly growing demand indicates that the EU s import dependency will further increase. The aim of this paper is to provide a short global outlook and to introduce the composition of the resources available within the borders of the EU and the EEA by types, that generates common thinking on energy supply security. Introduction Energy related questions, such as supply security and energy driven external relations have become hot issues both on national and community level in Europe current challenges of the gas supply via Ukraine strengthen concerns. Not surprisingly, the European Union as a community and as an institution undertakes deeper and deeper involvement in acting as a think tank and to act as a channel of common interests in order to take energy security related common actions. This approach has its origin in the history of the EU: the European Coal and Steel Community and the European Atomic Energy Community contributed as the historical background of deeper cooperation to a common approach to energy. Energy markets and geopolitical considerations have changed significantly since then. Main driver is that consumption of all fuels except nuclear one accelerated in the first years of the 21st century compared to the previous years, and world energy Received:February 9, 2009 Address for correspondence: EDINA DOBOS dobosedina@hotmail.com

2 consumption is projected to expand by 50% from 2005 to At the same time, resources are limited. Already the Green Paper on the security of energy supply in 2000 declared, that the European Union s external energy dependence is constantly increasing. 2 Even though EU countries try to cut their energy consumption 3 and enhance the use of renewable energy sources, dependence on outside suppliers for fossil fuels is increasing continuously. There are two main reasons of this tendency, namely that the volume of EU s known reserves of oil and gas is decreasing while energy consumption is expected to increase on longer term. Due to these processes the European Union became the world s biggest importer of energy and the second largest consumer. 4 EU documents declare that the EU is becoming increasingly exposed to the effects of price volatility influenced and defined by international energy markets and the consequences of the concentration of hydrocarbons reserves in few hands. 5 It is not a question any more that energy supply security is extremely important both from economic, social and security reasons. Several documents and analyses are published related to this topic, even though most of them focus on the prospective trends of energy use and foreign relations related dimension of the challenge and takes given that resources are limited and volume is decreasing. This is the reason why the present analysis focuses on the roots of the problem, namely the introduction and analysis of the resources available and the tendencies influencing volume output. The aim of the publication is to provide a short global outlook and to introduce the composition of the resources available within the borders of the EU and the EEA by types, the aspects affecting the availability of these resources and the steps that can be taken by the EU. Methodology and terms Geographical dimension of the analysis At the moment the European Union consists of 27 member states, but number of members increased significantly in 2004 (10 new members) and further two candidates joined the EU in Due to this process, statistics on EU data can refer to different number of member states depending on the stage of the enlargement process. The date of the EU statistics therefore can influence the volume of the reserves and resources significantly. However, due to the updated statistics available at the end of 2008, if not referred else, data used in this analysis introduces the common statistics of the 27 member states. 730 AARMS 7(4) (2008)

3 The analysis focuses on the European Union s resources, but due to the extensive economic and social relations between EU and European Economic Area (EEA) countries, the analysis cannot and must not neglect reserves and resources in EEA countries. Non-renewable resources available in any of the EEA countries, will also be included in the paper. Data The analysis uses several sources to be found on the internet, because reliable statistics are available this way, and paper based material is more limited on the topic. These sources are selected, often published by the European Union itself (based on Eurostat data) 6 and provide reliable material to the analysis. Most of the data are given as known in 2007 which helps comparativity. Please note that depending on the origin of the statistics used in the present analysis, units of measurement may differ. Notwithstanding these differences the data introduce and illustrate the most important aspects and tendencies of energy resources in the EU and its members. Among the entities publishing information on energy resources and reserves, the analysis reclines first of all upon BP (British Petroleum p.l.c) statistics 7 and BGR (Federal Institute for Geosciences and Natural Resources, Germany) statistics, 8 but WEC (World Energy Council), OPEC (Organization of Petroleum Exporting Countries), Energy Information Administration (Official Energy Statistics of the U.S. Government) and the Oil and Gas Journal are also relevant sources of data and information. Information sources indicate different data, because the majority of producing countries also tend to use different national classifications. We also have to bear in mind that practically it is unknown, how much minerals lie under the Earth s surface. Therefore all the data used related to any kind of natural reserves are only estimations. Terms The estimations can be also confusing, since institutions and companies publishing statistics, use different statistical and geological methodologies. However, there are some definitions that helps to understand the background of the terms used in the related bibliography. Reserves 9 As a main rule, the term reserves generally refers to quantities indicated by geological and engineering information that can be recovered in the future under existing economic and geological conditions with reasonable certainty. 10 It means practically that the level of reserve figures depends on price as well as on technological progress. AARMS 7(4) (2008) 731

4 Reserve growth can refer to the increase in reserves in an oil or gas field resulting from the use of enhanced production methods and improved knowledge of the deposit. Resources The term resources refers to the demonstrated quantities that cannot be recovered at current prices and/or with current technology but might be recoverable in the future, as well as quantities that are geologically indicated and possible but not demonstrated. 11 Reserves are not included in the resources. Cumulative production Cumulative production is the sum of all single energy resource that has ever been produced until a specific date. Cumulative production can be given for a field, oil basin, country or the world. Estimated ultimate recovery (EUR) EUR comprises the cumulative production, reserves and resources. The term is mainly used for hydrocarbons. Present energy situation a global outlook According to BGR Annual report, non-renewable fuel reserves amounted to approx. 39,100 EJ 12 or 1,330 Gtce 13 at the end of As a comparison, resources of nonrenewable fuels were estimated to 504,200 EJ at the same time. 14 As a common understanding of all of the statistics, coal reserves are the largest, accounting for approx. 53% of the non-renewable fuel reserves and for about 30% of the global primary energy consumption in It is the most widely used fuel in power plants for electricity generation with ca. 37% of the global share. BGR Annual report declares that coal possesses the largest potential of all non-renewable fuels and provides 56% (711 Gtce) of the reserves and 84% (14,212 Gtce) of the resources worldwide. Coal usage was surpassed only by crude oil the reserves of which amount to 25% of the total non-renewable fuel volume. 15 According to BP Statistical Review reserves have grown by billion barrels 16 since 2001 and by billion barrels (14%) over the last decade. It means that volume of proved reserves amounted to billion tons (1,237.9 billion barrels) in However, oil is expected to be the first energy source the world can be short of: it is also indicated by that in several years, 2007 was the first year when there was no increase in reserves compared to the previous year 732 AARMS 7(4) (2008)

5 ( billion barrels). The estimated amount of global crude oil reserves is almost equal to the previous year s data. The geographical distribution of oil reserves is uneven: in 2007 the American continent (the largest consumer, accounting altogether for more than 35% of the global consumption) possessed only approx. 14.6% of the proven reserves, Europe and Eurasia had 11.6% (equal to 19.4 billion tons of proved reserves versus 24% of global consumption), Africa had 9.5% of the proved reserves, Asia Pacific had 3.3%, while the remaining 61% was to be found in the Middle East. According to the statistics referred to above, natural gas provides 18% of the nonrenewable fuel reserves. After crude oil and hard coal, natural gas accounts for about 24% of the world s primary energy consumption. Its share has increased in the last several years, and this trend is expected to continue in the future. The globally estimated ultimate recovery (EUR) for conventional natural gas is about 476 trillion m It is equivalent to 432 Gtoe, 18 which is about 10% higher than the EUR for conventional oil. This number is almost 4 trillion m 3 (nearly 1%) higher than the previous year s estimation (BGR 2007). Therefore it is expected that natural gas will be available in sufficient quantities in the foreseeable future and it will cover the expected demand for several decades to come. Nuclear fuels amounts only to 4% of the global reserves. According to BGR Annual review, from a geological point of view, no shortfall in supply is expected for nuclear resources in the next decades. In contrast to fossil fuels, uranium mine production is less than the consumption, because requirements were partly met by uranium from civil and military stockpiles, especially the USA and in Russia. Uranium reserves 19 and the secondary uranium sources (stocks, military inventories) are expected to be sufficient to supply the existing nuclear power plants for several decades. A good indicator of the supply security is that in 2007, 439 nuclear power plants with 372 GW capacities were operated 20 with 64,615 t uranium, of which only about 64% came from mine production. The reserves seem to be also abundant considering the tendencies according to which generally only 3 4 reactors are completed per year. Uranium reserves and resources are concentrated only in a few countries. Five countries possess almost 83% of the reserves: Australia (709,000 t, 40%), Canada (270,100 t, 15%), Kazakhstan (235,500 t, 13%), Brazil (139,600 t, 8%) and South Africa (114,900 t, 6.5%). Uranium production is also concentrated, but for politically stable countries. In 2007, Canada accounted for approx. 23%, Australia, Kazakhstan, and Russia for a further 45% of the global uranium production. In line with this, it is not surprising that market concentration also exists for uranium producing companies. In 2007 approx. 85% of the mined uranium was produced by only seven companies. AARMS 7(4) (2008) 733

6 European resources and trends limits of energy security According to Federal Institute for Geosciences and Natural Resources, EU-27 possesses only 3% 21 of the world s energy volume in non-renewable energy reserves. Since 2004 the EU s energy production has been declining. In 2006, EU production was 880 Mtoe, out of which nuclear energy comprised 30%, followed by solid fuels (22%), gas (20%), oil (14%) and renewables (14%). 22 Declining energy production compared to expectedly growing demand indicates that the EU s import dependency will further increase. Share of the Energy Sources in Total Primer Energy 23 is shortly introduced by the following table: Solid fuels Oil Gas Nuclear Renewables Source: European Energy and Transport trends 24 Solid fuels Compared to the other energy resources, in Europe only proved reserves of coal and lignite may be considered as substantial. 25 About 80% of Europe s fossil fuel reserves are solid fuel, which is a considerable proportion of the whole volume, but at the same time this quantity represents still a limited share of world reserves. According to BP Statistical Review, the EU s proved coal reserves represent 3.5% of world reserves and 50 years of today s production. Coal resources are reported to correspond to 476 billion tons for hard coal and 83 billion tons for brown coal. 26 Due to the amount of the reserves and the decrease in the volume of use compared to the previous decades, the expected European future demand can be met for many decades. Hard coal reserves are mainly concentrated in Poland, but there are significant reserves in the Czech Republic and there are limited reserves in Spain, Hungary, United Kingdom and Germany. For lignite, reserves are present in much more countries including geographical territories from Germany to Greece AARMS 7(4) (2008)

7 Oil Europe itself does not dispose of relevant oil reserves but uses a considerable amount of this energy source. Reserves-to-production (R/P) ratio 28 in the Eurasian region is 22.1 even though the ratio includes relevant reserves of Kazakhstan, Azerbaijan and the Russian Federation. The European Union itself had only 0.5% of the proven oil reserves, with a 7.8 R/P ratio, a statistics that makes European experts concerned. If we also add the resources of the remaining EEA countries including Norway, 29 we will find 2 billion tons (15 billion barrels), 1.2% of proven oil world reserves. The EEA is currently an important oil producer ranking fourth in terms of global production, even though oil production has been declining since 2000 from 6.8 Mbl per day to approximately 5 Mbl per day in However, the oil resources and reserves in the EEA are limited and represent a small proportion of world reserves. 30 European reserves are mainly located in the North Sea area (Norway, United Kingdom and Denmark) and in South-East Europe (Romania). The remaining reserves are concentrated in smaller accumulations and fields. Production in these fields depends on the economic circumstances (mainly on current oil prices) and improvement in oil recovery technologies. Gas The gas reserves and resources in the EU and the EEA region represent a very small proportion of the world reserves, even if the picture looks better for gas than for oil. The proven reserves are estimated at 3,500 Bcm (BGR) for the EU and to 5 6,000 Bcm for the EEA at the end of The proved reserves for the EU correspond to between 1.4% and 2.0% according of the world s proved reserves. EEA gas proved reserves amounted to approximately 2.7% 3.7% of the world s proved reserves at the end of At current production rates, the EU proved reserves secure between years; for the EEA, the proved reserves secure between years of domestic production. 31 According to BGR, resources of natural gas for the EEA could amount to approximately 7,000 Bcm, which more than doubles the current proved reserves. Gas reserves are mainly located in Norway, the Netherlands, the United Kingdom and Romania. The European gas market, however, has access 32 to about 45% of the global EUR of natural gas. This is due to the comparatively easy access to Russian and North African gas fields. AARMS 7(4) (2008) 735

8 Nuclear energy/uranium Currently approx. one third of the electricity and therefore 15% of the energy consumed in the EU is of nuclear origin which is one of the largest sources of carbon dioxide free energy production in Europe. Even though there are severe debates about the question, nuclear power has been one of the ways of limiting CO 2 emissions within the EU. 33 Identified resources of uranium 34 in the EU are very modest, amounting to approx. 105 thousand tons and unevenly distributed representing only approx. 1.9% of world identified resources at the beginning of Within the member states, Denmark possesses the biggest identified resources with about 32 thousand tons, and only France, Spain and Sweden have identified resources above 10 thousand tons of uranium. It has to be kept in mind that EU resources are substantially complemented by reprocessed and re-enriched sources. Only a few countries have reported their estimates on undiscovered resources. On the basis of the available information, undiscovered resources in the EU could represent 1.1% of the world s undiscovered uranium resources. These resources are thought to be present in Denmark and Hungary. 35 One of the further relevant minerals that could be used for nuclear energy production is thorium: reserves of more than 2 Mt Thorium can be considered as a possible basis for future energy supply. At the moment this material is not used for power generation, since there are no operating thorium reactors. In South Africa and India there are extensive scientific experiments. Renewables Even though renewable energy volume makes only a small part of the total energy consumption, it must not be neglected due to environmental and energy supply security considerations and also as a potential for economic development. Energy accounts for 80% of all greenhouse gas (GHG) emission in the EU; it causes the most air pollution. The EU is committed to reduce greenhouse gas emissions both at global and European level to a volume that would limit the global temperature increase to 2 C compared to pre-industrial levels. However, current energy and transport policies indicate that EU CO 2 emissions would increase by around 5% by 2030 and global emissions would rise by 55% if no radical actions are taken. In 1997 the EU decided to double the share of renewable energies in gross domestic energy consumption, from 6% to 12% by In 2001, member states also agreed on 736 AARMS 7(4) (2008)

9 non-binding national targets to expand electricity production originating from renewable sources from 13.9% in 1997 to 22.1% by Individual member states use different levels of renewable energy, and therefore have different national targets to Gross inland renewable consumption in the EU-27 in 2006 (ktoe) Renewables Biomass Hydro Wind Solar Geothermal EU Share 100.0% 68.9% 20.5% 5.5% 0.8% 4.3% Source: EU Energy and Transport in Figures EU companies are amongst the world leaders in developing new renewable energy technologies. The European Union is already the global leader in renewable technologies, 38 and it has further potential to grow. The growth potential is relevant, e.g., only wind energy capacity is predicted to grow from 12 GW in 2000 to 60 GW by 2010 in the EU. Investment enhancement in energy efficiency and renewable energy can create jobs and promote innovation. Nonetheless, renewable energy production and use is widely promoted by different support mechanisms including quota systems, special tariffs, green certificates, non-refundable grants or a combination of them. Future trends and scenarios the way challenges can be met in the EU As introduced in the sections above, EU s own energy resources in geographical terms are limited, therefore the EU meets 50% of its energy needs through imports already today. At the moment energy imports account for 6% of total imports. This import is geographically and geopolitically concentrated: 45% of oil imports come from the Middle East and 40% of natural gas imports come from Russia. This import ratio is expected to increase to 70% by 2020 or 2030 unless the EU takes some special actions which are needed since external dependence involves economic, social, ecological and physical risks. The EU does not yet have all the necessary means to change the international market and energy regulation is not integrated enough to take effective common actions on European level. This weakness is also highlighted by the energy crises between Russia and Ukraine in 2008 and One solution was already recommended by the Green Paper for dealing with this problem is to draw up a strategy for security of energy supply aimed at reducing the AARMS 7(4) (2008) 737

10 risks attributable to external dependence. 39 Second Strategic Energy Review Securing our Energy Future emphasizes the following actions: Promoting infrastructure essential to the EU s energy needs A greater focus on energy in the EU s international relations Improved oil and gas stocks and crisis response mechanisms A new impetus on energy efficiency Making better use of the EU s indigenous energy reserves Nevertheless limitedness of reserves and resources underpin the necessity of common thinking and common action. Bibliography An energy policy for the future, Communication from the Commission of the European Council and the European Parliament, Brussels, (hereinafter: An energy policy for Europe) An external policy to serve Europe s energy interest, Joint paper by the Commission and the Secretary General/High Representative Javier Solana for the European Council (S160/06) age=arch&archdate=2006&archmonth=6 Entry: 7 June 2008 A Secure Europe in a Better World, European Security Strategy Brussels, 12 December Entry: 7 June 2008 BP Statistical Review of World Energy CORDESMAN, ANTHONY H.: Rethinking global energy security: Geostrategic and Economic Risks Center for Strategic and International Studies Entry: 9 June 2008 European Council Action Plan ( ) Energy Policy for Europe Annex I of Presidency Conclusions Brussels, 8/9 March 2007 Nr 7224/1/07 register.consilium.europa.eu/pdf/en/07/st07/st07224-re01.en07.pdf Entry: 30 June 2008 EU energy and transport in figures Statistical pocketbook 2007/2008 Directorate General for Energy and transport European Communities, European Energy and Transport trends to 2030 Update 2007, European Commission Directoriate-General for Energy and Transport, p AARMS 7(4) (2008)

11 European Commission s web page on ENP Entry: 29 June 2008 Europe s current and future energy position (Commission staff working document) /strategic_energy_review_wd_future_position2.pdf European Nuclear Society. (home page) Entry: 6 January 2009 Green Paper Towards a European strategy for the security of energy supply Commission Green Paper of 29 November 2000 Towards a European strategy for the security of energy supply sga_doc?smartapi!celexplus!prod!docnumber&lg=en&type_doc=comfinal&an_doc=2000&nu_doc=769 Entry: 29 June 2008 Green Paper on the security of energy supply Entry: 6 January 2009 Interactive map of the World Energy Council Entry: 7 January 2009 International Energy Outlook 2008 Office of Integrated Analysis and Forecasting, U.S. Department of Energy, Washington DC Entry: 31 December 2008 Key Institutional Decisions in the Field of External Energy Policy European Communities, European Commission, External Relations MEMO/07/533 Developing external energy policy for the EU Brussels, 30 November /533&format=HTML&aged=0&language=EN&guiLanguage=en Entry: 30 June 2008 Renewable Energy Sector in the EU: its Employment and Export Potential, A Final Report to DG Environment, ECOTEC Research and Consulting Limited Reserven, Ressourcen und Verfügbarkeit von Energierohstoffen 2007 Bundesanstalt für Geowissenschaften und Rohstoffe, Hannover, /Energiestudie Kurzf 2007,templateId=raw,property=publicationFile.pdf/Energiestudie_Kurzf_2007.pdf In English: Reserves, Resources, and Availability of Energy Resources 2007 published by Bundesanstalt für Geowissenschaften und Rohstoffe, Hamburg, Uranium Resources and Nuclear Energy, Background Paper of Energy Watch Group, December Entry: 6 January 2009 AARMS 7(4) (2008) 739

12 Annex 1 Energy statistics for EU Mtoe Production Solid fuels Oil Gas Nuclear Renewables Industrial waste Net Imports Solid fuels Oil Gas Electricity Renewables Derived heat Gross Inland Consumption Solid fuels Oil Gas Nuclear Renewables Other (****) Elec. Generation (TWh) Coal (TWh) Oil (TWh) Gas (TWh) Nuclear (TWh) Renewables (TWh) (*) Other (TWh) (***) Final Energy Consumption by fuel/product Solid fuels Oil Gas Electricity Renewables Derived heat & Industrial waste by sector Industry Transport Households Commerce, etc Non-Energy Uses AARMS 7(4) (2008)

13 Energy statistics for EU (cont.) Mtoe CO 2 Emissions (Mt) (**) Energy intensity (toe/m '00) CO 2 intensity (tco 2 /toe) Import dependency, % Energy per capita (kgoe/cap) CO 2 per capita (kg/cap) Mtoe Production Solid fuels Oil Gas Nuclear Renewables Industrial waste Net Imports Solid fuels Oil Gas Electricity Renewables Derived heat Gross Inland Consumption Solid fuels Oil Gas Nuclear Renewables Other (****) Elec. Generation (TWh) Coal (TWh) Oil (TWh) Gas (TWh) Nuclear (TWh) Renewables (TWh) (*) Other (TWh) (***) AARMS 7(4) (2008) 741

14 Energy statistics for EU (cont.) Final Energy Consumption by fuel/product Solid fuels Oil Gas Electricity Renewables Derived heat & Industrial waste by sector Industry Transport Households Commerce, etc Non-Energy Uses CO 2 Emissions (Mt) (**) Energy intensity (toe/m '00) CO 2 intensity (tco 2 /toe) Import dependency, % Energy per capita (kgoe/cap) CO 2 per capita (kg/cap) References 1. International Energy Outlook 2008 Office of Integrated Analysis and Forecasting, U.S. Department of Energy, Washington DC Entry: 31 December Green Paper on the security of energy supply Entry: 6 January 2009 Tendencies in energy production and consumption are drawn in Annex EU energy consumption declined by 2.2% from 2006 to BP Statistical Review of World Energy June 2008 (hereinafter Bp Statistical Review) 4. An external policy to serve Europe s energy interest, Joint paper by the Commission and the Secretary General/High Representative Javier Solana for the European Council (S160/06) age=arch&archdate=2006&archmonth=6 Entry: 7 June AARMS 7(4) (2008)

15 5. An energy policy for the future, Communication from the Commission of the European Council and the European Parliament, Brussels, (hereinafter: An energy policy for Europe) 6. ec.europa.eu/eurostat 7. BP Statistical Review 8. Reserves, Resources, and Availability of Energy Resources 2007, Bundesanstalt für Geowissenschaften und Rohstoffe, Hamburg, (hereinafter referred to as BGR Annual report) 9. In case of oil, generally the term proved or proven reserves is used. The reserves are also known in the industry as 1P. Some industry specialists refer to this as P90, i.e. ideally having a 90% certainty of being produced. 10. BP Statistical Review 11. In the case of hydrocarbons, only recoverable amounts are considered. For coal this term is used for all resources in-place. BGR Annual report 12. EJ: 1 Exajoule=10^18 J =278*10^9 kwh 13. Gtce: 1 Giga ton coal equivalent = 10^18 ton coal equivalent=29ej Tce is the reference unit for the energetic evaluation of various energy carriers representing energy generated by burning one metric ton (1000 kilograms) of coal. 1 kg coal equivalent corresponds approximately to the calorific value of hard coal and specified as 7,000 kilocalories (approx kwh). For further details please see e.g., the web page of the European Nuclear Society. Entry: 6 January Compared to 2006, an increase of about 48% is calculated. It is the result of higher estimates of hard coal and lignite resources. For detailed information please see Table 1 6 in BGR Annual report In context of oil production, the definition of BP Statistical Review is the following: crude oil, shale oil, oil sands and NGLs (natural gas liquids the liquid content of natural gas where this is recovered separately) barrel stands for approx. 159 litres and tons. 1 billion stands for 10^ trillion m3=10^12 m3 18. The tons oil equivalent (toe) is a conventional standardized unit for measuring energy, defined on the basis of a ton of oil with a net calorific value of kilojoules/kg. EU Energy and Transport in Figures, Statistical pocketbook 2007/2008 (hereinafter EU Statistical pocketbook) Mt (10^17 t) in the cost category US$<40 per kg U The definition of Uranium resources differs from reserve classifications for fossil fuels in various ways. According to Annex 1 of the Background Paper of Energy Watch Group Uranium Resources and Nuclear Energy, known resources are divided into the groups Reasonably Assured Resources (RAR) and Inferred Resources (formerly denominated as Estimated Additional Resources, category 1 ). The categories are internally divided into various cost classes according to suggested extraction costs. The definition of these classes also changed from time to time. The classes below 40 $/kgu, below 80 $/kgu and below 130 $/kg U are the most widely used. Entry: 6 January For further details please see the web page of the European Nuclear Society Entry: 6 January EJ (BGR Annual report) AARMS 7(4) (2008) 743

16 22. Europe s current and future energy position (Commission staff working document accompanying the communication from the Commission to the European Parliament, the Council, the European Economic and Social Council and the Committee of Regions; hereinafter: Commission staff working document) /strategic_energy_review_wd_future_position2.pdf; 23. As a main rule, primary energy is energy that has not been subjected to any conversion or transformation process. Secondary energy is therefore the energy which has been transformed from one form to another. Typical example is electricity which is transformed from coal, oil, natural gas, biomass, etc. 24. European Energy and Transport trends to 2030 Update 2007, European Commission Directoriate- General for Energy and Transport, p According to BGR Annual report coals are divided into lignite and hard coal. This differs from the widely used classification of coal into lignite (soft brown coal), sub-bituminous coal (hard brown coal), bituminous coal (hard coal) and anthracite. Lignite is the lowest-rank coal, while Anthracite, the highest-rank coal. 26. Commission staff working document 27. The interactive map of World Energy Council helps to demonstrate existing reserves on Planet/Energy on the following web page: Entry: 7 January R/P ratio represents the length of time the remaining reserves would last if production were to continue at the previous year s rate. It is calculated by dividing remaining reserves at the end of the year by the production in that year. (BP Statistical Review) 29. Norway s R/P ratio is 8.8 according to BP 30. Commission staff working document 31. Commission staff working document 32. The present study does not deal with the risks attributable to instability and security challenges of transport routes and transit possibilities. 33. An energy policy for Europe 34. With the price below USD 130/kgU 35. Commission staff working document 36. Electricity generation of large hydroplants is not included. 37. For detailed information please see Renewable Energy Sector in the EU: its Employment and Export Potential, A Final Report to DG Environment, ECOTEC Research and Consulting Limited In wind energy, for example, EU companies have 60% of the world market share. 39. Commission Green Paper of 29 November 2000 Towards a European strategy for the security of energy supply [COM(2000) 769 final EU energy and transport in figures Statistical pocketbook 2007/2008, Directorate General for Energy and Transport, European Communities, 2008 (Date of entry: 30 December 2008) 744 AARMS 7(4) (2008)