Section 2 : The Impacts of energy insecurity

Key ideas

Energy pathways, between producers and consumers, are complex and show increasing levels of risk

What do we mean by an ‘energy pathway’? Look at the information on page 24 of Oxford and 16 on Pearson sheet.

Fossil fuel supply regions are poorly matched with areas of largest demand

This is especially true for oil and gas Energy must flow along international

pathways from producer to consumer These are either pipelines (oil and gas),

bulk carriers (coal, uranium), LNG tankers (gas) or oil tankers. Electricity is also exported / imported.

Routes may be complicated by Natural or environmental issues Human or political issues

BP Statistical Review of World Energy 2013 © BP 2013

Major oil trade movements 2012Trade flows worldwide (million tonnes)

What are the human and physical reasons why pathways may be disrupted? Discuss in pairs...

Risks of disruption

Gas pipeline disruption has already occurred, as disputes between Russia and Ukraine disrupted European gas supplies in 2006 and 2009

Russia holds 25% of world gas reserves, the Middle East 40% (and 56% of oil)

Read p 17-19 Pearson sheet about Russia

(and at home read http://en.wikipedia.org/wiki/Russia%E2%80%93Ukraine_gas_disputes and p 22-27 Oxford and write notes)

Choke pointsDisruption to narrow ocean choke points (see map) could seriously affect the flow of oil

Countries close to some choke points are unstable (Iran, Somalia, Yemen)

Eg Somali pirates (2011 onwards)

http://www.bbc.co.uk/news/world-africa-12412488

Risks of disruption There are real risks if oil and

gas supplies are disrupted. Any potential disruption is

headline news So dependent are we on cheap,

uninterrupted energy supplies that disruption could lead to:

1. Soaring energy costs and rising energy poverty

2. Pressure on politicians to act; possibly rationing energy

3. Civil disruption 4. Rising costs for industry, job

losses and recession5. Unsound decisions

(economically and environmentally) to rapidly develop alternative sources

6. Diplomatic conflict

UK energy disruption

Oct 1973

Oil crisis; petrol rationing

Sept 2000

UK wide fuel protests over price and tax

Aug 2005

Further UK protests; Hurricane Katrina pushes oil prices higher

Aug 2008

Oil at $147 a barrel

Jan 2010

National Grid ‘gas balancing alerts’ are headline news ; gas supply from Norway drops on technical problems