Energy

Fossil fuels (oil, coal, and natural gas) are the primary sources of energy globally, accounting for a large majority of the world's energy supply.

Renewable energy sources, like biofuels, hydropower, and solar, are gaining ground but still constitute a smaller proportion of the world's energy mix.

The total amount of energy produced from all sources is called Total Primary Energy Supply. This includes the energy lost in the process of turning raw energy sources into usable energy.

The amount of energy consumed by businesses and individuals in a region is called Total Final Consumption (TFC). It is always less than TPES due to energy losses during transformation.

With the rise of China and Asia, the share of energy consumed by developed countries (OECD) has decreased while the share consumed by developing countries has significantly increased.

Production of natural gas has significantly outpaced oil production due to its perceived cleaner nature compared to oil. However, production was impacted by the 2008 financial crisis and the COVID-19 pandemic in 2020. Wealthier nations, while previously major producers, have reduced their natural gas production.

Coal production has been rising since the year 2000, primarily driven by China's rapid industrialization and its heavy reliance on coal for energy. This surge in coal production helped China achieve rapid economic development.

The majority of electricity generation is still reliant on fossil fuels, with a gradual increase in the use of renewable energy sources. This suggests a shift towards sustainability, but fossil fuels remain dominant.

China is the world's leading energy producer, primarily relying on coal for more than half of its energy needs. The US, India, Russia, and Japan follow closely behind.

China consumes the most energy globally, predominantly used for industrial purposes. The US follows with transport as its primary energy consumer, followed by India, Russia, and Japan.

A situation where there is a shortage of energy resources, leading to high prices and economic instability.

A group of countries that work together to control the price and supply of oil.

The price of oil is greatly affected by the supply and demand of oil. When there is a high demand for oil, but low supply, the price of oil increases. This is known as the price volatility.

The transfer of wealth from oil-importing countries to oil-exporting countries during an energy crisis. Oil-exporting countries benefit from higher oil prices.

Oil extracted using new technologies like hydraulic fracturing (fracking). This has increased oil production and reduced reliance on traditional sources.

The use of quantity restrictions to control the price of oil. This involves limiting the amount of oil produced and sold on the market.

The ability of OPEC to influence oil prices by restricting production and maximizing profits.

The primary source of energy often used in high-income economies, including oil, natural gas, and coal.

The global energy system is experiencing significant challenges due to factors like the war in Ukraine and the situation in the Middle East, leading to increased prices for oil and gas.

The "Stated Policies Scenario" (STEPS) assumes that current energy policies will remain largely unchanged, leading to limited new initiatives.

The "Announced Pledges Scenario" (APS) assumes that governments will fulfill all their pledges related to energy transition, indicating more ambitious efforts.

The "Net Zero Emissions by 2050 Scenario" (NZE) assumes that all necessary actions will be taken to limit global warming to 1.5°C, requiring significant changes in energy production and consumption.

The global use of fossil fuels is expected to reach a peak in the coming years, with declines in advanced economies and China offset by rising demand elsewhere.

Investments in clean energy sources, like wind and solar, and electric vehicles are increasing, indicating a shift away from fossil fuels.

Coal consumption is expected to decline in the coming years, primarily due to its use in electricity generation and industries like steel and cement.

Investments in clean energy sources are currently exceeding those in fossil fuels, signaling a potential long-term shift towards a cleaner energy system.

Germany's ambitious plan to transition from nuclear power and heavily rely on renewable energy sources.

Japan's heavy reliance on oil and gas imports makes it highly vulnerable to energy price fluctuations.

China's energy strategy involves diversifying its energy sources with investments in oil production, nuclear power, methane gas, and renewable energies.

The Fukushima-tsunami disaster in 2011 highlighted the safety concerns of nuclear power, leading to the decommissioning of many reactors in Japan.

China's coal reliance contributes significantly to its energy supply but also exacerbates air and water pollution.

An organization of oil-producing countries that aims to influence oil prices by adjusting production levels. It seeks to maintain stable and high oil prices for its members.

OPEC is a major player in the global oil market, but its control has diminished due to competition from non-OPEC producers. If OPEC reduces production but non-OPEC countries increase theirs, OPEC's strategy becomes less effective.

A group of oil-producing countries, including OPEC members, that cooperate to influence oil prices. This larger group gives them more power in the oil market.

In October 2022 and April 2023, OPEC+ announced voluntary reductions in crude oil production. The goal is to stabilize oil prices at a higher level.

The US has a strong reliance on oil, but investments in shale oil and gas have significantly increased domestic production.

Private costs of energy (including gasoline taxes) are low, but social costs, such as military expenses, environmental damage, and health impacts, are high.

European countries have implemented energy conservation policies using taxes, regulations, and subsidies, including high gasoline taxes.

European countries diversify their energy sources by importing oil and gas from different regions, including the North Sea, Russia, and countries like Algeria and Qatar.