What is energy security

Energy security refers to a country's ability to access reliable and affordable supplies of energy to meet its needs. This concept is crucial because energy powers everyday activities, from heating homes to running industries. A nation achieves high energy security when it can satisfy all its demands using domestic resources, without heavy reliance on imports that could be disrupted.

Why energy security matters

Energy security is not just about having enough resources – it also involves ensuring supplies are consistent and prices remain stable. Countries that import most of their energy face risks from global events, such as conflicts or price fluctuations, which can make energy unaffordable or unavailable. As the world's population grows, demand for energy rises, putting pressure on supplies and highlighting the need for increased production to avoid shortages.

Energy surplus and deficit

• Energy surplus - This occurs when a country produces more energy than its population requires. The excess can be exported, generating income and strengthening economic position.
• Energy deficit - This happens when production falls short of demand, forcing reliance on imports and increasing vulnerability to external factors.

Factors influencing energy security

Several physical and human factors determine a country's level of energy security. These elements interact to shape how easily energy can be accessed, produced, and distributed.

Physical factors

Physical factors relate to the natural environment and geography that affect energy availability.

Key physical factors affecting energy security:

• Availability of domestic supplies - Countries with abundant resources, such as oil or natural gas reserves, require less investment in imports and transport, boosting security.
• Infrastructure and location - Urban areas often have reliable networks for constant supply, while rural or remote regions may face intermittent access due to poor infrastructure.
• Terrain suitability - Certain landscapes favour specific energy types; for example, areas with steep river valleys and high rainfall are ideal for hydroelectric power, which harnesses water flow to generate electricity.
• Geopolitical and natural disruptions - Conflicts can block trade routes, and natural hazards like storms may damage infrastructure, preventing energy from reaching demand areas.

Human factors

Human factors involve economic, social, and political decisions that influence energy access and use.

Key human factors affecting energy security:

• Cost considerations - Extracting non-renewable resources, such as through deep-sea drilling for petroleum, becomes more expensive as easy-to-reach supplies dwindle. High costs for new infrastructure, like nuclear plants or wind farms, can deter investment, leading to import dependence.
• Technological advancements - Generating energy requires advanced tools, which can raise consumer prices. Innovations like carbon capture and storage offer long-term solutions, while investments in renewables prioritise sustainable options.
• Public perceptions - Views on energy sources vary; nuclear power is often seen as risky or polluting, while renewables like wind may be opposed for visual impacts. Individual lifestyles, such as travel choices or home energy use, also shape personal energy demands.
• Economic development - Developing countries may have resources but lack funds for extraction or distribution. In contrast, developed nations with higher disposable incomes consume more through devices, vehicles, and transport systems, increasing overall demand.
• Environmental priorities - Governments focusing on sustainability shift from polluting fossil fuels to greener alternatives. International pacts, such as the Paris Agreement, commit nations to cutting fossil fuel reliance and investing in renewables.

These factors show that energy security is a balance between natural endowments and human choices, with governments often weighing short-term costs against long-term benefits.

The energy mix and its classifications

The energy mix describes the range of sources a country uses to meet its energy needs. Relying on a single source can be risky due to potential disruptions or price spikes, so most nations diversify to enhance security. The mix is typically expressed as percentages of total energy supply.

Why diversify the energy mix

A varied mix reduces vulnerability; for instance, if one source faces supply issues, others can compensate. Globally, fossil fuels still dominate, but renewables are gaining ground for their sustainability.

Classifications of energy sources

Primary and secondary energy:

• Primary energy - Energy in its natural form, directly harnessed from sources like burning coal to produce heat.
• Secondary energy - Energy resulting from converting primary energy, such as using coal's heat in a power station to generate electricity.

Renewable and non-renewable energy:

• Renewable energy - Sources that replenish naturally and won't deplete, like solar (from sunlight), wind (from air movement), or hydroelectric power (from water flow). They produce minimal waste and require less maintenance.
• Non-renewable energy - Finite sources that will eventually be exhausted, including fossil fuels like coal, oil, and natural gas.

Domestic and foreign energy:

• Domestic energy - Produced and consumed within the same country, reducing import risks.
• Foreign energy - Sourced from abroad and imported, which can expose a nation to global market fluctuations.

Example of an energy mix

The UK's energy mix in 2020 illustrates diversification:

This mix shows a shift towards renewables while still relying on fossil fuels.

Global variations in energy consumption

Energy consumption – the amount used by individuals, industries, and societies – varies worldwide and is closely tied to economic development. It powers essentials like transport, lighting, and machinery, with patterns reflecting wealth and lifestyle.

Measuring energy consumption

• Per capita consumption - Usage per person, often standardised as tonnes of oil equivalent per year (toe/yr), gigajoules per year (GJ/yr), or megawatt hours per year (MWh/yr).
• Energy intensity - Energy used per unit of gross domestic product (GDP). Low intensity indicates efficient use.
• GDP spending on energy - The portion of national income allocated to energy supply.

Higher GDP typically means greater per capita consumption due to affordability

• High-consumption countries - Wealthy nations like Sweden and the USA use more energy for electricity, heating, and devices.
• Low-consumption countries - Poorer nations like Ghana and Mongolia have lower rates due to limited access and less energy-dependent lifestyles.

Global maps from 2014 show North America and parts of Europe with high consumption (over 6.0 toe/yr), while much of Africa and Southeast Asia fall below 1.5 toe/yr.

Levels of energy security in different countries

Countries exhibit varying energy security based on their mixes, consumption, and import reliance.

Comparing energy security: USA and France

The USA's diverse mix and exporter status suggest strong security, though fossil fuel dependence poses future risks. France's nuclear focus provides price stability, but import reliance, including from Russia, creates vulnerabilities.

Key players in energy security

Various groups and organisations shape energy security through production, pricing, and policy. Their actions influence global supplies and access.

Transnational corporations (TNCs)

TNCs are companies operating in multiple countries, often handling all stages of energy from exploration to sales. They set prices, potentially sparking price wars, and some are state-owned, like Russia's Gazprom (over 50% government-controlled), which uses energy for political alliances or market control.

Organisation of the Petroleum Exporting Countries (OPEC)

OPEC is a group of 13 oil-producing nations, including Saudi Arabia and Iran, controlling about 80% of global proven oil reserves and producing 32 million barrels daily in 2021. They stabilise markets by adjusting supply to maintain high prices, but face competition from US fracking (extracting oil from shale rock using high-pressure fluids).

Consumers

Consumers drive demand through lifestyle choices, such as energy use in homes or transport. They may select renewable suppliers or form protest groups against controversial projects like fracking sites, influencing development.

Governments

Governments secure supplies via trade deals, infrastructure investments (e.g., power stations), and alliances with groups like OPEC. They promote efficiency campaigns, regulate prices, and commit to agreements like the Paris Agreement to shift towards renewables and cut emissions.