ENERGY

RETREAT LABORATORY CGSS

Cinta Sayang Resort & The Carnival

Sungai Petani

21-24 August 2014

W e l e a d

Overview of Energy

• What is energy?

Derives from Ancient Greek “energeia”

Defined as the ability or capacity of a system to do action or energy is the ability to do work

Measured in terms of how much ‘work’ it can deliver; be it moving, cooling or lighting something

This definition allows the quantification of energy; understand how it is used, how it changes form, how to increase energy efficiency (EE) and how to make inform comparison between various energy resources

W e l e a d

Overview of Energy

• Brief historical development of demand

World energy time travel and change in the energy mix

Age of wood Age of coal Age of oil

W e l e a d

Overview of Energy

World energy per capita consumption of various fuels

Exponential growth in energy usage; primary energy such as combustion of fossil fuels or secondary energy in the form of electricity

W e l e a d

Overview of Energy

• Seven different energy forms

Kinetic energy – due to motion

Potential energy – stored due to position

Chemical energy – stored in bonds of atoms and molecules

Thermal energy – random motion and vibration of atoms and molecules

Electrical energy – flow of electric charge

Radiant energy – propagated by electromagnetic waves

Nuclear energy – holds nucleus together in an atom

W e l e a d

Malaysia’s Energy Policies

• Petroleum Development Act (PDA), 1974 – led to the establishment of PETRONAS

• National Petroleum Policy (NPP), 1975 – to further regulate the oil and gas industry for their efficient utilization

• National Energy Policy (NEP), 1979 – to set the framework and direction for energy production and utilization, including minimizing negative environmental impacts

W e l e a d

Malaysia’s Energy Policies

• National Depletion Policy (NDP), 1980 – to ensure preservation of national oil and gas reserves

• The Four Fuel Diversification Policy, 1981 – to secure a better way of maintaining energy reliability through diversification of energy supply, a balance energy supply mix of oil, gas, coal and hydropower

• Renewable Energy (RE) as the Fifth Fuel, 2001 – RE as fifth fuel to supplement conventional energy resources

W e l e a d

Malaysia’s Energy Policies

• National Green Technology Policy, 2009 – Green Technology (GT) shall be a driver to accelerate the national economy and promote sustainable development

• National Renewable Energy Policy, 2010 – enhancing utilization of indigenous RE resources for national electricity supply security and sustainable socioeconomic development

• New Energy Policy & 10th Malaysia Plan, 2010 – role of energy to lift the economy towards a higher growth

W e l e a d

Non-Renewable Energy

• Three major forms of fossil fuels; coal, oil and natural gas

• Found within the rocks of the Earth’s surface

• Formed many hundreds of millions of years ago by geological processes acting on plants and dead animals, respectively

• Once used up they cannot be replaced, i.e. finite resources of energy

W e l e a d

Non-Renewable Energy

• Coal

A combustible, sedimentary, organic rock, composed mainly of carbon, hydrogen and oxygen

• Oil and natural gas

Chemicals made from molecules containing just carbon and hydrogen, in the form of chemical compounds known as hydrocarbons

Crude oil is a sticky, gooey black stuff, with many different molecules, but all are made of carbon and hydrogen atoms

A simple molecule called methane (CH4), is the main component of natural gas

W e l e a d

Coal – Global Production Values

• 2011 estimation of proven coal reserves worldwide – 948 billion tonnes

• Enough coal for the next 190 years

• Biggest reserves are in USA, Russia, China, Australia and India

United States, 260,551, 28%

Russia, 173,074, 18%

China, 126,215, 13%

Australia, 84,217, 9%

India, 66,800, 7%

Germany, 44,863, 5%

Rest of World, 192,281, 20%

Coal Reserves, 2011 (billion tonnes)

W e l e a d

Coal – Global Production Values

• Over 4000 million tonnes produced in 2012, a 38% increase over the past 20 years

• Production has grown fastest in Asia, with a decline in Europe

• Global production expected to reach 7 billion tonnes in 2030, with China contributing around half the increase

W e l e a d

Coal – Global Production Values

• Coal is mined commercially in over 50 countries and used in over 70 countries

• World trading map to America, Asia, and Europe in year 2010 in millions of tonnes

W e l e a d

Coal – National Production Values

• Malaysia’s coal reserves amount to around 1.9 billion tonnes

• All of the coal produced is for internal consumption

National Coal Production

Sarawak 69%

Sabah 29%

Peninsular 2%

W e l e a d

Coal – Global Consumption Values

• Global consumption was over 5000 million tonnes in 2011

• Biggest market for coal is Asia, which accounts for 54% of coal consumption

W e l e a d

Coal – Global Consumption Values

• Steam coal (thermal coal) is used in power stations to generate electricity

• Coking coal is used in iron and steel production

• Coal provides 27.7% of global primary energy needs and generates 66.6% of the world’s electricity

Nuclear, 4.10%

Hydro, 6.10%

Gas, 22%

Oil, 30%

Coal, 27%

Biomass, 8.50%

Other, 2.20%

Nuclear

Hydro

Gas

Oil

Coal

Biomass

Other

World primary energy consumption, 2012

W e l e a d

Coal - National Consumption Values

• Coal is still projected to play a very important role in Malaysia’s energy supply, even though accompanied by major challenges like emission of GHGs and air pollutants such as SO2 and CO2

• Technological advances in coal-based power plant have made coal a much cleaner fuel

• 70% of the demand for coal is used for the generation of power

• The remaining supply is consumed by cement, iron and steel sectors

• Total consumption for electricity generation is projected to increase to 36 million tonnes in 2020

W e l e a d

Oil – Global Production Values

• Estimated global oil reserves in 2012 – 115 billion bbl (oil barrel)

W e l e a d

Oil – Global Production Values

• Oil is produced in more than 100 countries

• Top ten oil-producing countries accounted for over 63% of the world’s oil production

W e l e a d

Oil – Global Production Values

• Many factors can affect level of production, such as

War

Civil unrest

Natural disasters

National and international politics

Adherence to quotas

Oil demand

New discoveries

Technology development or application

W e l e a d

Oil – National Production Values

• Malaysia’s proved oil reserves are fifth highest in Asia-Pacific (after China, India, Vietnam and Indonesia), and one of the top 30 highest reserves in the world

W e l e a d

Oil – National Production Values

• Nearly all of Malaysia’s oil comes from offshore fields; the Malay basin offshore peninsular Malaysia, Sarawak and Sabah basins

W e l e a d

Oil – National Production Values

• At 2012 rate of production (643,000 barrels per day (b/d)), the reserves will last an average of 25 years

• New discoveries of oil fields are required to prolong the reserves to spare the use of nation’s oil until 2038

• Heavy reliance on oil to sustain economic growth is causing the government to emphasize fuel diversification by promoting RE to ensure the nation’s energy is secured

W e l e a d

Oil - Global Consumption Values

• Oil gives us mobility, electricity and products such as plastics, clothing and cosmetics

• World’s consumption of oil products reached a record high of 88.9 million b/d in 2012

W e l e a d

Oil - Global Consumption Values

• Declining consumption in North America and Europe was outpaced by growth in Asia and other regions

• Asia’s consumption increased by 4.4 million b/d between 2008 and 2012

• US consumption was reduced in 2011 and 2012 as a result of higher oil prices and increased fuel efficiency of light-duty vehicles

• In spite of this, the US remains by far the largest user of oil, consuming more than China

W e l e a d

Oil – National Consumption Values

• Consumption of oil is mainly in the transportation and industrial sectors

W e l e a d

Oil – National Consumption Values

• In 2010, 664,800 b/d of crude oil were produced, of which 234,000 b/d were exported

• This is about 35% of crude oil production

• 205,000 b/d of lower-cost crude oil were imported for processing at oil refineries for the nation’s consumption

• Total consumption in 2010 is more than 500,000 b/d

• Focus on enhancing output from existing fields and developing new fields in deep water areas

W e l e a d

World Oil Price Scenario

• Price depends on the supply and demand

• Countries dependent on petroleum imports suffer from high energy prices

W e l e a d

Gas - Global Production Values

• World natural gas proved reserves

• Top 3 reserves are in Russia, Iran and Qatar

W e l e a d

Gas - Global Production Values

• World natural gas production for top 10 countries

• Natural gas production for 2011 was estimated to be 118043.5 billion cubic feet of volume

W e l e a d

Gas - National Production Values

• Malaysia’s gas reserves are predominantly located in offshore of Sarawak

W e l e a d

Gas - National Production Values

• Is the fourth largest natural gas reserves holder in the Asia-Pacific region, and top 15 in world ranking

• The natural gas production offshore Sarawak supports liquefied natural gas (LNG) exports from Bintulu

• In 2012, Malaysia was the world’s second largest exporter of LNG after Qatar (10% of total world LNG exports)

• Malaysia’s natural gas production has risen steadily over the past two decades

W e l e a d

Gas - National Production Values

• Based on 2010 natural gas reserves and rate of production, the reserves is expected to last an average of 39 years

W e l e a d

Gas - Global Consumption Values

W e l e a d

Gas - Global Consumption Values

• The amount consumed in 2012 by USA was 24,094.8 bcf followed by Russia with 16,417.1 bcf, Iran and China with 5,439.2 and 4630.5 bcf, respectively

• It is the fuel of choice for electric power and industrial sectors, due to its lower carbon intensity compared with coal and oil

• Attractive fuel source in countries implementing policies to reduce GHG emissions

W e l e a d

Gas - National Consumption Values

• The power sector consumes about 74% of natural gas market sales

• Rising domestic demand and LNG export contracts place pressure on gas supply

W e l e a d

Effect of Population

• The UN predicts a global population of 9 billion people in 2050, 2 billion more people than are alive today

• Growing populations consume more energy

• Increase in energy consumption exerts demands on energy resources making them scarcer and harder to extract

• Forests have been depleted, coal mines dug deeper, oil and gas drilled in more complex environment, for sufficient energy supply

W e l e a d

Effect of Population

• Earth could not support the current population without first the commercialization of coal, then of oil and, more recently, gas

• These energy sources are responsible for the unprecedented population growth over the last 300 years, but environmental unfriendly

• Population will no longer grow unless current energy resource production is increased and new resources exploited

• New resources must be GHGs-free alternatives

W e l e a d

Affect to Poverty

• Over 1.6 billion people – almost one third of humanity – have no electricity

• Lack of access to efficient modern energy has significant impact on economic development and small-scale enterprise, educational opportunities, infant mortality and quality of life

• United Nations Development Programme (UNDP) states that “None of the Millennium Development Goals (MDGs) can be met without major improvement in the quality and quantity of energy services in developing countries”

W e l e a d

Affect to Poverty

• Commission for Sustainable Development (CSD) concluded “To implement the goal accepted by the international community to halve the proportion of people living on less than US$1 per day by 2015, access to affordable energy services is a prerequisite”

• The International Energy Agency (IEA) has recommended that the number of people without electricity should be reduced to 1 billion

W e l e a d

Affect to Poverty

• The main issues to be tackled on energy access for the poor are;

Recognizing the right to energy – basis of justice for the poor

Political willingness from governments – their responsibility

The funding gap on energy access for the poor – subsidies, financial incentives, clear policies on tariffs

Clear and specific pro-poor policies and strategies – rapid implementation

W e l e a d

Affect to Poverty

Sustainability of energy access – creation of local capacities, mobilization of local capital, energy literacy

Allowance of greenhouse gas emissions – using all of the energy mix available

Alternative climate change mechanisms – new mechanism to transfer existing carbon market funds towards projects which directly reduce energy poverty

W e l e a d

Affect to Climate Change

• Climate change is one of the greatest environmental threats the world is facing

• Leading to catastrophic events such as storms, droughts, sea level rise and floods

• An energy system based on fossil fuels is mainly responsible for GHGs emissions that lead to global warming and climate change

• RE provides one of the leading solutions to affect the climate change issue, the other one being efficient in the usage of energy

W e l e a d

Affect to Climate Change

• By providing “carbon-neutral” sources of power, heat, cooling and transport fuels, RE options such as wind, solar, biomass, hydro, geothermal, wave and tidal offer a safe transition to a low carbon economy

• Inter-governmental Panel on Climate Change (IPCC) predicts that global average temperatures are likely to rise between 1.4 to 5.8 C over this century, depending on the amount of fossil fuels burnt and the sensitivity of the climate system

W e l e a d

Disaster Risk Management Mitigation

• Web definition

The systematic management of administrative decisions, organization, operational skills and capacities to implement policies, strategies and coping capacities of the society and communities to lessen the impacts of natural hazards and related environmental and technological disasters. This comprises all forms of actions, including structural and non-structural measures to avoid (prevention) or to limit (mitigation and preparedness) adverse effects of hazards

W e l e a d

Climate Change and Disaster Risk Management Mitigation

• If climate change is not contained and the currently rising GHGs emissions are not reduced significantly, the adverse consequences of climate change will undermine development gains, including poverty reduction

• Incorporating both climate change action and disaster risk management mitigation is a prerequisite for achieving sustainable and more resilient development

W e l e a d

Climate Change and Disaster Risk Management Mitigation

• Progress has been achieved at the global level to help guide and drive regional and national processes on climate change and disaster risk management mitigation through Conference of Parties (COP) of the United Nations Framework Convention on Climate Change (UNFCCC)

• At the national and sub-national level, implementation has been channelled through integrated policies and plans, joint working groups and comprehensive activities on the ground

Thank you

Presented by Haslan ABU HASSAN

CETREE&GT USM