From the discovery of fire to that of the atom, the development of human societies has largely been based on the conquest of energy. In all countries, energy has gradually become one of the key factors of social and economic development, as well as capital, labor and natural resources, and now no one can do without it. After decades of cheap energy flowing without any problem, over the last forty years crises have become the rule. This disruption of the energy landscape is of particular concern as the impact of energy crises on human societies became considerable. This book seeks to provide a basis for reflection on all global energy problems, offering an analysis of the main aspects to consider: energy supply, resource-dependent industries and technology available, macroeconomic implications of energy demand, geopolitical issues, and specifics of the situation in developing countries. It does not thoroughly address environmental issues, which would require further study beyond the limits we set. This book is the second edition of a book published in 1992, at a time when obtaining energy and economic data was much more difficult than today, when many databases are freely accessible on the Internet. In this new context, we hope it will assist the reader in finding his/her way in the considerable amount of information available. Energy is a vast field that can be approached from multiple angles. The approach proposed here is to start by providing the reader with technical bases on energy, and thus energy supply, before considering the demand, that is to say, the socio- and macro-economic dimensions, then addressing global issues relating to energy, and finally complete the study of the main issues that arise in this area today.
This book summarizes the main issues related to energy and requires no special knowledge beforehand, whether in economics, engineering or international relations. It consists of nine chapters, the first being the introduction. Chapter 2 introduces the main energy sectors (oil, natural gas, coal, synthetic hydrocarbons, nuclear power, renewable energy, thermal or pneumatic storage), i.e. how the main sources of energy can be exploited. Chapter 3 presents the main macroeconomic and energy indicators that are commonly used to assess the energy situation in a country. Concepts that are introduced being then used consistently in other chapters, it is essential to understand well their definitions and limitations. The fourth chapter analyzes the impacts of energy at the macro level, including the links between economic activity and energy consumption. The fifth chapter introduces the main principles generally accepted in the development of energy policy and planning, and then discusses the institutional aspects. The sixth chapter is devoted to geopolitics: current consumption of energy, energy reserves and resources worldwide, international energy trade, and specific problems faced by developing countries. The seventh chapter is devoted to the study of the energy situation in eleven different countries, showing the contrast between them, depending on their level of economic development, demography, natural resource endowments, etc. The list of countries includes high-income developed countries (France, United States, United Kingdom), the emerging group called the BRICS (Brazil, Russia, India, China, South Africa), a North African oil exporting country (Algeria), a west African country (Côte d'Ivoire), and an Asian exporter of coal and natural gas (Indonesia). The eighth chapter discusses emerging issues related to energy, in particular its relationship to the environment and the success of policies aiming at controlling demand. The ninth and final chapter begins with a prospective study of various scenarios for the medium and long term. The analyses presented in the book are then summarized by outlining the main pending issues.
The book includes 22 tables, 150 figures and 3 mind maps, as well as links to databases available online (World Bank, United Nations, BP).
Preface (by Jean-Arnold Vinois, Honorary Director at the European Commission, Former Director of the internal energy market within the Directorate General for Energy)
1 Introduction.
1.1 Overall presentation
1.2 Structure of the book
1.3 Educational use of this book
1.3.1 Recommended pedagogy
1.3.2 Available diapason sessions
1.4 Energy and economic statistics
2 Energy sectors
2.1 Presentation
2.2 Forms of energy
2.3 Conversion of energy
2.4 Main sources of energy
2.4.1 Oil
2.4.2 Natural gas
2.4.3 Coal
2.4.4 Non-conventional fuels
2.4.5 Nuclear energy
2.4.6 Renewable energy
2.5 Electricity production
2.5.1 Thermal power plants
2.5.2 Production management
2.5.3 Transport and distribution
2.5.4 Cost structure
2.5.5 Conclusion
2.6 Thermal or pneumatic energy storage
2.7 Characteristics of energy sectors
2.7.1 Implementation time
2.7.2 Economic comparisons
2.7.3 Diversity and rigidity
2.8 Conclusion
References
Further reading
3 Macroeconomic indicators and accounting of energy
3.1 Presentation
3.2 Evolution of the world population
3.3 Basics
3.3.1 Gross domestic product
3.3.2 Gross national product, gross national income
3.3.3 International comparisons
3.3.4 Economic growth and development
3.3.5 Human development index
3.4 Structure of GDP
3.5 Energy accounting, energy chain
3.5.1 Accounting problems
3.5.2 Flow graphs
3.6 Energy intensity
3.6.1 Definition of the energy intensity
3.6.2 World energy intensities
3.6.3 Income elasticity
3.6.4 Relationship between growth rates
3.6.5 GDP and energy in France
3.6.6 Energy intensity changes of OECD countries
3.6.7 Convergence of world energy intensity
3.6.8 Changes in the electricity content of GDP
3.7 Indicators for CO2 emissions
3.8 Energy markets
3.8.1 International trade
3.8.2 Oil market
3.8.3 Natural gas market
3.8.4 Coal market
3.8.5 Conclusion on the energy markets
References
Further reading
4 Impact of energy on the economic development
4.1 Presentation
4.2 Energy consumption and income level
4.2.1 Factors of development
4.2.2 Evolution of energy consumption
4.3 Coal and industrial revolution
4.4 Work / energy substitution
4.5 Reduction of transportation cost
4.6 An anecdotal illustration
4.7 Energy uses
4.8 Mechanisms of formation of energy demand
4.8.1 Decomposition of demand
4.8.2 Determinants of aggregate demand
4.9 Macro-economic impacts of energy
4.9.1 Energy sector
4.9.2 Non-energy productive sector
4.9.3 Impact on investment
4.9.4 Impact on the balance of payments
4.9.5 Impact on consumers
4.9.6 Impact on the state revenue
References
Further reading
5 Energy policy
5.1 Presentation
5.2 Limitations of the energy policy
5.3 Main objectives of the energy policy
5.4 Energy policy
5.4.1 Planning process
5.4.2 Energy models
5.5 Pricing elements
5.5.1 Economist pricing approach
5.5.2 Political approach to pricing
5.5.3 Practical difficulties of pricing
5.6 Institutional aspects
5.6.1 Need for joint action levels on supply and demand
5.6.2 Organization of national energy systems
5.6.3 Relationship between the central administration and operators
5.7 Conclusion
References
Further reading
6 World energy situation
6.1 Presentation
6.2 Consumption and production
6.2.1 Primary energy consumption in the world
6.2.2 Historical trends
6.2.3 Distribution of per capita consumption
6.2.4 Regional distribution
6.2.5 Production and consumption by region
6.2.6 Production and consumption by country groups
6.3 Energy reserves and resources
6.3.1 Definitions
6.3.2 Reserves of oil and natural gas
6.3.3 McKelvey diagram
6.3.4 Proved reserves
6.3.5 Resources
6.4 Energy problems in developing countries
6.4.1 Definition
6.4.2 Dual societies
6.4.3 Oil importers DCs
6.4.4 Energy problems of the poorest
6.4.5 The firewood crisis
6.4.6 Commercial energy needs
6.4.7 Energy characteristics of developing countries
References
Further reading
7 Case studies from different countries
7.1 South Africa
7.2 Algeria
7.3 Brazil
7.4 China
7.5 Côte d'Ivoire
7.6 United States
7.7 france
7.8 India
7.9 Indonesia
7.10 United Kingdom
7.11 Russia
7.12 Conclusion
References
8 Recent developments: new dimensions of the energy problem
8.1 Presentation
8.2 Environmental issues
8.2.1 Impact of energy on the atmosphere
8.2.2 General on the other environmental impacts of energy
8.2.3 Possible solutions
8.3 Changing technology
8.3.1 Introduction
8.3.2 Exploration and production in the oil sector
8.4.3 Improved combustion
8.3.4 Production of electricity from natural gas
8.3.5 Reduction of specific energy consumption
8.3.6 Carbon capture and storage
8.4 A chronically unstable oil market
8.4.1 Consequences on demand to OPEC
8.4.2 The peak oil debate
8.4.3 Interaction between oil demand and price
References
Further reading
9 Outlook
9.1 Presentation
9.2 Energy scenarios
9.2.1 Long-term scenarios (2100)
9.2.2 Medium term scenarios (2030-2050)
9.3 Major trends
9.3.1 A sharp increase in energy consumption
9.3.2 A growing levy on world wealth
9.3.3 Concern on the environmental impact
9.3.4 Adequate resources at the scale of the planet
9.3.5 Reducing the energy content of GDP
9.3.6 A continued leading role for oil
9.3.7 Persistence of geopolitical constraints
9.3.8 Continuation of a sustained technological development effort
References
Further reading
Annex 1: Pedagogical remarks
A1.1 Innovative pedagogy
A1.2 Learning objectives
Annex 2: Energy units and conversion factors
Author BioThe main part of Renaud Gicquel's curriculum has taken place at Ecole des Mines de Paris, at its Centre for Energy and Processes which he headed from September 1987 to December 2002. Named full professor in July 1986, he teaches applied thermodynamics, an introduction to global energy issues and energy system modelling. He was formerly Special Assistant to the Secretary General of the United Nations Conference on New and Renewable Sources of Energy from April 1980 to October 1981 in New York, and Chargé de mission for multilateral issues in the Service des Affaires Internationales of the Ministry for Research and Technology in Paris in 1982. He was co-founder with M. Grenon of the Observatoire Méditerranéen de lEnergie.
After graduating from École Polytechnique in 2007, May Gicquel is Ingénieur des Ponts et Chaussées. She works in the French Treasury Directorate of the Ministry of Economy and Finance in Paris, and is deputy head of the 'MULTIFIN2 unit, in charge of supervising the AFD (French Agency for Development) groups strategy and finances.
Related SubjectsEnergy & FuelsBusiness & PolicyRenewable EnergyName: Introduction to Global Energy Issues
