Global Energy Production & Use 101 Jean-Sébastien Rioux The School of Public Policy SPP-HEI Summer School on the Geopolitics of Energy & Natural Resources Calgary, AB May 15-20, 2017
Presentation highlights 1. Global demand for all forms of energy will rise by another 25% between 2017 and 2040, due to population growth and human development 2. All of this growth in demand for energy will come from non-oecd nations, particularly the expanding economies in the Asia-Pacific region: expansion of the middle class, particularly in China and India; greater access to modern energy in homes; rising industrial demand; and significant increases in personal and commercial transportation needs. 3. Hydrocarbon-based energy will still account for over 75% of energy use by 2040 4. Canada can be a part of this future energy mix 5. Co2 emissions expected to peak in 2030, then decrease
What is Energy? Power derived from the utilization of physical or chemical resources, especially to provide light and heat or to work machines, or to transform something into another thing Sources: Hydrocarbons (gas, oil, coal) Renewables (solar, wind, hydro, tidal, biomass) Nuclear Animals labor or dung Wood Chemical reactions Etc.
Energy is the ability to: Create or change motion (push, pull, change direction) Lift anything Change temperature (heat something up, cool it off, keep it at a different temperature than surroundings) Change shape (bend objects, form particular shapes) Make sound, light & electricity
Measures of energy Basic unit is the joule a very small unit of measurement. Burning one wooden match = 1,055 joules = 1 BTU One gigajoule is one billion joules. The amount of energy consumed each year in a typical Canadian home is equivalent to 120 gigajoules 120 billion joules Other representations of the amount of energy represented by one gigajoule: Approximately 30 litres of gasoline 39 litres of propane 278 kilowatt-hours of electricity 45.5 kilograms of coal. Note: 1 calorie from a muffin = 4,187 joules Source: Alberta Energy, http://www.energy.alberta.ca/about_u s/1132.asp
World Energy Demand is Increasing
Energy Use Closely Correlated with Living Standards Africa Asia Pacific Europe & Eurasia 100,000 GDP per Capita 10,000 1,000 100 100 1,000 10,000 Energy Use per Capita Source: World Bank
Energy Use Closely Correlated with Living Standards, II Source: Rob Ryan, http://hamiltonianfunction.blogspot.ca/2009/11/energy-use-and-standard-of-living.html
What does energy use in Canada look like?
Energy use in much of the rest of the world
Demand for all forms of energy will rise by another 25% between 2017 and 2040 Source: ExxonMobil (2017) Energy Outlook 2040
Demand for all forms of energy will rise by another 25% between 2017 and 2040 primarily in non-oecd countries: Source: ExxonMobil (2017) Energy Outlook 2040
OECD = wealthy countries OECD = organization of economic cooperation and development
OECD vs non-oecd Energy Use Billion tonnes oil equivalent 8 7 6 5 4 3 2 1 OECD non-oecd 0 19 1991 19 19 19 1995 19 1997 19 19 20 20 20 20 20 20 20 20 20 20 20 2011 Source: World Bank
OECD vs non-oecd Electricity Use Terawatt hours 12000 10000 8000 6000 OECD 4000 2000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: World Bank
The demand for energy will largely be driven by urbanization and resulting electrification in developing countries Source: ExxonMobil (2017) Energy Outlook 2040
as well as for the growth in demand for hydrocarbon-based transportation fuel to support economic growth, primarily in Asia Source: ExxonMobil (2017) Energy Outlook 2040
Hydrocarbons will still represent over 75% of energy demand in 2040
Supply of energy between 2017 and 2040 will meet the demand ExxonMobil (2017) Outlook for Energy 2040, http://cdn.exxonmobil.com/~/media/global/files/outlook-forenergy/2017/2017-outlook-for-energy.pdf
Quiz! 1. What percent of electricity in Canada is generated by renewable energy (hydro, wind, solar) v. other, non-renewable sources? Source: Natural Resources Canada: http://www.nrcan.gc.ca/publications/statistics-facts/1239
Another quiz! 2. What percentage of ALL energy in Canada is produced by renewable sources (hydro, wind, solar, biomass) v. hydrocarbons (oil, gas, coal)? Renewable Energy sources: 11% Nuclear: 2% Fossil fuels: 87% Source: http://www.nrcan.gc.ca/publications/statistics-facts/1239
Where is Canada on the global energy production stage? Third largest producer of hydro-electricity in the world Fourth largest producer of natural gas in the world Fifth largest producer of crude oil in the world 3 rd largest proven oil reserves on Earth 174+ billion barrels recoverable Fun statistic: if Canada produced 4 million barrels or oil per day, every day, we have sufficient reserves to sustain that for 119 years! About 22% of global petroleum reserves are accessible to global investors; Canada alone represents about 55% of oil reserves accessible to private capital!
*Source: US Energy Information Agency (http://www.eia.gov/countries/index.cfm?view=production)
Energy Use (2015) Billion Tonnes Oil Equivalent 3 2.5 2 1.5 1 0.5 0 Australia Austria Belgium Canada Chile Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea, Rep. Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States China Source: World Bank
Per Capita Energy Use (2015) Million Tonnes Oil Equivalent per Capita 20 18 16 14 12 10 8 6 4 2 0 Australia Austria Belgium Canada Chile Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Ireland Israel Italy Japan Korea, Rep. Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Slovenia Spain Sweden Switzerland Turkey United Kingdom United States China Source: World Bank
Questions?