MarketWorld energy supply and consumption
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World energy supply and consumption

World energy supply and consumption refers to the global supply of energy resources and the consumption of the latter. The system of global energy supply consists of the development, refinement, and trade of energy. Energy supplies may exist in various forms such as raw resources or more processed and refined forms of energy. The raw energy resources include for example coal, unprocessed oil and gas, uranium. In comparison, the refined forms of energy include for example refined oil that can be used as fuel or to generate electricity. Energy resources may be used in various different ways, depending on the specific resource, and intended end use. Energy production and consumption play a significant role in the global economy. It is needed in industry and global transportation. The total energy supply chain, from production to final consumption, involves many activities that cause a loss of useful energy.

Primary energy production
Primary energy refers to the first form of energy encountered, as raw resources collected directly from energy production, before any conversion or transformation of the energy occurs. Energy production is usually classified as: • Fossil, using coal, crude oil, and natural gas; • Nuclear, using uranium; • Renewable, using biomass, geothermal, hydropower, solar, wind, tidal, wave, among others. Primary energy assessment by IEA follows certain rules to ease measurement of different kinds of energy. These rules are controversial. Water and air flow energy that drives hydro and wind turbines, and sunlight that powers solar panels, are not taken as PE, which is set at the electric energy produced. But fossil and nuclear energy are set at the reaction heat, which is about three times the electric energy. This measurement difference can lead to underestimating the economic contribution of renewable energy. Enerdata displays data for "Total energy / production: Coal, Oil, Gas, Biomass, Heat and Electricity" and for "Renewables / % in electricity production: Renewables, non-renewables". The table lists worldwide PE and the countries producing most (76%) of that in 2021, using Enerdata. The amounts are rounded and given in million tonnes of oil equivalent per year (1 Mtoe = 11.63 TWh (41.9 petajoules), where 1 TWh = 109 kWh) and % of Total. Renewable is Biomass plus Heat plus renewable percentage of Electricity production (hydro, wind, solar). Nuclear is nonrenewable percentage of Electricity production. The above-mentioned underestimation of hydro, wind and solar energy, compared to nuclear and fossil energy, applies also to Enerdata. The 2021 world total energy production of 14,800 MToe corresponds to a little over 172 PWh / year, or about 19.6 TW of power generation. == Energy conversion ==
Energy conversion
Energy resources must be processed in order to make them suitable for final consumption. For example, there may be various impurities in raw coal mined or raw natural gas that was produced from an oil well that may make it unsuitable to be burned in a power plant. Primary energy is converted in many ways to energy carriers, also known as secondary energy: • Coal mainly goes to thermal power stations. Coke is derived by destructive distillation of bituminous coal. • Crude oil goes mainly to oil refineries • Natural-gas goes to natural-gas processing plants to remove contaminants such as water, carbon dioxide and hydrogen sulfide, and to adjust the heating value. It is used as fuel gas, also in thermal power stations. • Nuclear reaction heat is used in thermal power stations. • Biomass is used directly or converted to biofuel. Electricity generators are driven by steam or gas turbines in a thermal plant, or water turbines in a hydropower station, or wind turbines, usually in a wind farm. The invention of the solar cell in 1954 started electricity generation by solar panels, connected to a power inverter. Mass production of panels around the year 2000 made this economic. == Energy trade ==
Energy trade
Much primary and converted energy is traded among countries. The table lists countries with large difference of export and import in 2021, expressed in Mtoe. A negative value indicates that much energy import is needed for the economy. as pipelines to Asia plus LNG export capacity is much less than the gas no longer sent to Europe. Transport of energy carriers is done by tanker ship, tank truck, LNG carrier, rail freight transport, pipeline and by electric power transmission. == Total energy supply ==
Total energy supply
Total energy supply (TES) indicates the sum of production and imports subtracting exports and storage changes. For the whole world TES nearly equals primary energy (PE) because imports and exports cancel out, but for countries TES and PE differ in quantity, and also in quality as secondary energy is involved, e.g., import of an oil refinery product. TES is all energy required to supply energy for end users. The tables list TES and PE for some countries where these differ much, both in 2021 and TES history. Most growth of TES since 1990 occurred in Asia. The amounts are rounded and given in Mtoe. Enerdata labels TES as Total energy consumption. 25% of worldwide primary production is used for conversion and transport, and 6% for non-energy products like lubricants, asphalt and petrochemicals. Most of the energy lost by conversion occurs in thermal electricity plants and the energy industry own use. Discussion about energy loss There are different qualities of energy. Heat, especially at a relatively low temperature, is low-quality energy of random motion, whereas electricity is high-quality energy that flows smoothly through wires. It takes around 3 kWh of heat to produce 1 kWh of electricity. But by the same token, a kilowatt-hour of this high-quality electricity can be used to pump several kilowatt-hours of heat into a building using a heat pump. It turns out that the loss of useful energy incurred in thermal electricity plants is very much more than the loss due to, say, resistance in power lines, because of quality differences. Electricity can also be used in many ways in which heat cannot. In fact, the loss in thermal plants is due to poor conversion of chemical energy of fuel to motion by combustion. Otherwise chemical energy of fuel is not inherently low-quality; for example, conversion of chemical energy to electricity in batteries can approach 100%. So energy loss in thermal plants is real loss. One way to account for this difference and to compare them is via the substitution method. High quality energy is measured according to the amount of low-quality energy that would be needed to produce it. == Final consumption ==
Final consumption
Total final consumption (TFC) is the worldwide consumption of energy by end-users (whereas primary energy consumption (Eurostat) or total energy supply (IEA) is total energy demand and thus also includes what the energy sector uses itself and transformation and distribution losses). This energy consists of fuel (78%) and electricity (22%). The tables list amounts, expressed in million tonnes of oil equivalent per year (1 Mtoe = 11.63 TWh) and how much of these is renewable energy. Non-energy products are not considered here. The data are of 2018. The world's renewable share of TFC was 18% in 2018: 7% traditional biomass, 3.6% hydropower and 7.4% other renewables. In the period 2005–2017 worldwide final consumption of coal increased by 23%, of oil and gas increased by 18%, and that of electricity increased by 41%. Canada, Venezuela and Brazil generate most electricity with hydropower. The next table shows countries consuming most (85%) in Europe. Energy for energy Some fuel and electricity is used to construct, maintain and demolish/recycle installations that produce fuel and electricity, such as oil platforms, uranium isotope separators and wind turbines. For these producers to be economical the ratio of energy returned on energy invested (EROEI) or energy return on investment (EROI) should be large enough. If the final energy delivered for consumption is E and the EROI equals R, then the net energy available is E-E/R. The percentage available energy is 100-100/R. For R>10 more than 90% is available but for R=2 only 50% and for R=1 none. This steep decline is known as the net energy cliff. == Availability of data ==
Availability of data
Many countries publish statistics on the energy supply and consumption of either their own country, of other countries of interest, or of all countries combined in one chart. One of the largest organizations in this field, the International Energy Agency (IEA), sells yearly comprehensive energy data which makes this data paywalled and difficult to access for internet users. The organization Enerdata on the other hand publishes a free Yearbook, making the data more accessible. Another trustworthy organization that provides accurate energy data, mainly referring to the USA, is the U.S. Energy Information Administration. == Trends and outlook ==
Trends and outlook
Due to the COVID-19 pandemic, there was a significant decline in energy usage worldwide in 2020, but total energy demand worldwide had recovered by 2021, and has hit a record high in 2022. In 2022, consumers worldwide spent nearly USD 10 trillion on energy, averaging more than USD 1,200 per person. This reflects a 20% increase over the previous five-year average, highlighting the significant economic impact and the increasing financial burden of energy consumption on a global scale. IEA scenarios In World Energy Outlook 2023 the IEA notes that "We are on track to see all fossil fuels peak before 2030". The IEA presents three scenarios: Alternative scenarios The goal set in the Paris Agreement to limit climate change will be difficult to achieve. Various scenarios for achieving the Paris Climate Agreement Goals have been developed, using IEA data but proposing transition to nearly 100% renewables by mid-century, along with steps such as reforestation. Nuclear power and carbon capture are excluded in these scenarios. The researchers say the costs will be far less than the $5 trillion per year governments currently spend subsidizing the fossil fuel industries responsible for climate change. In the +2.0 C (global warming) Scenario total primary energy demand in 2040 can be 450 EJ = 10,755 Mtoe, or 400 EJ = 9560 Mtoe in the +1.5 Scenario, well below the current production. Renewable sources can increase their share to 300 EJ in the +2.0 C Scenario or 330 EJ in the +1.5 Scenario in 2040. In 2050 renewables can cover nearly all energy demand. Non-energy consumption will still include fossil fuels. Global electricity generation from renewable energy sources will reach 88% by 2040 and 100% by 2050 in the alternative scenarios. "New" renewables—mainly wind, solar and geothermal energy—will contribute 83% of the total electricity generated. The average annual investment required between 2015 and 2050, including costs for additional power plants to produce hydrogen and synthetic fuels and for plant replacement, will be around $1.4 trillion. Shifts from domestic aviation to rail and from road to rail are needed. Passenger car use must decrease in the OECD countries (but increase in developing world regions) after 2020. The passenger car use decline will be partly compensated by strong increase in public transport rail and bus systems. CO2 emission can reduce from 32 Gt in 2015 to 7 Gt (+2.0 Scenario) or 2.7 Gt (+1.5 Scenario) in 2040, and to zero in 2050. == See also ==
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