Energy

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Questions and Answers

Which fossil fuel had the highest contribution to the total primary energy supply in 2019?

Oil (correct)

Biofuels

Natural gas

Coal

What was the approximate percentage of renewable energy sources in the world’s energy supply in 2019?

14% (correct)

20%

25%

10%

How has the share of renewable energy in electricity production changed by 2019?

It has risen (correct)

It has remained constant

It has decreased significantly

It is negligible

Compared to 1970, how has the energy supply share of OECD countries changed by 2019?

It has reduced (C) Signup and view all the answers

What is a significant characteristic of total final consumption compared to total energy supply?

It is always lower than total energy supply (B) Signup and view all the answers

Why has natural gas production increased more than oil production?

Gas is considered a cleaner fossil fuel than oil. (C) Signup and view all the answers

What major event caused a temporary downturn in natural gas production?

The financial crisis of 2008 and COVID-19 pandemic in 2020. (B) Signup and view all the answers

Which country has produced the most energy, primarily through coal?

China (C) Signup and view all the answers

What has contributed to the increase in coal production since 2000?

China's massive investment in coal production for rapid development. (B) Signup and view all the answers

How does electricity generation primarily occur according to recent trends?

Mostly produced and increased by fossil fuels. (A) Signup and view all the answers

Which country is planning to phase out nuclear power but is currently hesitating?

Belgium (B) Signup and view all the answers

What significant energy-related incident occurred in Japan in 2011?

Fukushima tsunami disaster (B) Signup and view all the answers

Which country relies heavily on coal for energy, covering about two-thirds of its energy supply?

China (B) Signup and view all the answers

What is the primary focus of Germany's 'Energiewende' policy?

Transitioning to renewable energy (B) Signup and view all the answers

What strategy is China employing to address its energy supply challenges?

Investments in oil-producing nations (B) Signup and view all the answers

In 2019, what was the significant change in access to electricity?

About half of the population in Sub-Saharan Africa lacked access to electricity. (C) Signup and view all the answers

What does the Stated Policies Scenario (STEPS) envision for future energy policies?

Maintenance of current policy settings with no major changes. (D) Signup and view all the answers

What is predicted regarding fossil fuel use according to the content?

Fossil fuel use will hit a peak before rapidly declining. (D) Signup and view all the answers

What economic response is caused by high prices in gas and oil markets?

Greater exploration of alternative energy sources. (A) Signup and view all the answers

What is a likely scenario regarding the use of coal in the coming years?

Negative growth rates will occur primarily in coal use. (C) Signup and view all the answers

Which scenario assumes that all government pledges are achieved?

Announced Pledges Scenario (APS) (D) Signup and view all the answers

What trend is observed in investments compared to fossil fuels?

Investments in clean energy are significantly outpacing those in fossil fuels. (B) Signup and view all the answers

What is one of the projected outcomes of reaching peaks in fossil fuel usage?

An increase in investments in electric vehicles. (C) Signup and view all the answers

Which event is associated with the oil price quadrupling during the 1970s?

Arab-Israeli War (B) Signup and view all the answers

What primary energy source do high-income economies predominantly rely on?

Fossil fuels (A) Signup and view all the answers

What is the main mission of OPEC?

To coordinate petroleum policies and stabilize oil markets (A) Signup and view all the answers

Which of the following crises is associated with a doubling of oil prices?

Iranian Revolution (B) Signup and view all the answers

What impact do energy crises typically have on oil prices?

They lead to high prices that are temporary. (C) Signup and view all the answers

Which factor has pressured the traditional wealth transfer mechanism in the oil market?

Competition from shale oil and new oil-exporting countries (A) Signup and view all the answers

How does OPEC maintain higher oil prices when there are signs of a price drop?

By lowering their production levels (C) Signup and view all the answers

What proportion of the world's oil supply does OPEC control?

One third (A) Signup and view all the answers

What is the primary strategy of OPEC+ in managing oil prices?

Cut crude oil production to stabilize prices (D) Signup and view all the answers

Which of the following best describes the relationship between OPEC and non-OPEC oil supplies?

Non-OPEC supplies have increased pressure on OPEC's strategy (A) Signup and view all the answers

What major change in oil production occurred in the U.S. due to investments in shale oil?

Increase in domestic oil production (D) Signup and view all the answers

What external costs are associated with consuming oil from OPEC countries?

Military expenditures to secure oil access (D) Signup and view all the answers

What approach have European countries largely taken in response to energy crises?

Implemented energy conservation policies through taxes and regulations (D) Signup and view all the answers

What was one of the steps taken by the Bush administration to reduce oil dependency?

Enhanced research in renewable energy sources (B) Signup and view all the answers

Which is a significant consequence of the low private cost of energy in the U.S.?

Increased externalities related to oil consumption (B) Signup and view all the answers

Which country is not mentioned as a member of the OPEC+ collaboration?

Canada (A) Signup and view all the answers

Study Notes

Chapter 5: Energy

International Energy Agency (IEA) data provides 2019/2020 energy situation data, and the 2023 outlook.
Fossil fuels (oil, coal, natural gas) dominated the 2019 world energy supply (31%, 27%, and 23%, respectively).
Renewable energy sources (biofuels, hydro, solar) constituted 14% of the 2019 global energy supply.
China and Asia's energy shares have significantly increased.
The share of electricity in final consumption has risen considerably.
Energy supply losses occur throughout transformation to usable energy.
Belgium imports a large amount of energy.
The majority of the world's energy comes from fossil fuels since the 1970s.
The share of OECD countries' energy supply has decreased since the 1970s.
Coal production has increased since 2000, primarily due to China's rapid development.
China is the largest energy producer, primarily using coal.
Other significant energy producers include the US, India, Russia, and Japan.
China's energy consumption is largely in the industrial sector, followed by the US (transportation).
In 2019, 761 million people lacked access to electricity, with increases in sub-Saharan Africa.
The world's energy markets are greatly impacted by the ongoing war in Ukraine and the Middle East issues.
Increasing global energy prices create significant economic incentives to explore renewable alternatives.

Energy Crisis

Multiple energy shocks have occurred since the 1970s, notably the 1973-74 Arab-Israeli war, 1979-80 Iranian Revolution, and 1990-91 Gulf War, along with the 2003 Iraq War, and 2022 Russian invasion of Ukraine.
These crises cause significant price fluctuations and wealth transfers from consuming countries to producing ones.
The Organization of the Petroleum Exporting Countries (OPEC) is a cartel aiming to stabilize oil markets.
OPEC aims for a stable income for producers and fair return for investments.
OPEC and other producers seek profit by influencing oil prices (quantity restrictions that affect ~1/3 of global supplies)
Non-OPEC producers put increasing pressure on OPEC.
Instability in oil-producing nations creates added economic costs for consuming nations.

Government Responses

The US remains highly dependent on oil, but shale oil/gas production has increased domestically.
The private cost of fossil fuels is low, but social costs (environmental damages, health, etc.) are high.
European countries have diversified energy sources and implemented conservation policies.
Germany is transitioning to renewables.
Japan faces high import dependency, but has a conservation tradition.
China is the largest energy user, but heavily reliant on coal.
This reliance leads to severe air and water pollution.

Economics and Energy

Energy use correlates with a country's development level, but the relationship isn't always linear, particularly at higher development levels.
Decoupling energy use from growth is considered vital in reducing energy use and emissions.
Empirical evidence suggests that decoupling is still a distant goal.
The energy crisis poses significant challenges to developing countries (LDCs), impacting initial development stages due to expensive energy imports and debt burdens.

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Description

Explore Chapter 5 on energy dynamics, focusing on the International Energy Agency's insights from 2019/2020 and the 2023 outlook. Delve into the dominance of fossil fuels, the rise of renewables, and the significant shifts in energy production, especially in China and Asia. This chapter provides a comprehensive perspective on global energy supply and consumption trends.