6.5 - Fossil Fuels: Supply & Demand
Formation and types of fossil fuels
Fossil fuels are energy sources that originate from the remains of ancient organisms, transformed over millions of years through geological processes. These fuels release energy when burnt, making them essential for electricity generation and transport. The main types are coal, oil, and natural gas, each forming under specific conditions and used in different ways.
How fossil fuels form
Fossil fuels develop from dead organic matter that gets buried and subjected to heat and pressure over vast timescales. This process traps the energy stored in the original organisms, which can later be released through combustion.
How different fossil fuels are made:
- Coal - Forms primarily from plant remains. As these materials are buried, they undergo heating, turning into coal.
- Oil - Originates from organic material. Burial and heating break down this organic material into oil.
- Natural gas - Requires higher temperatures, typically at greater depths.
Uses of fossil fuels
These resources are commonly burnt in power stations to produce electricity, while oil is refined into products like petrol for vehicles.
Geological factors influencing fossil fuel distribution
The availability of fossil fuels varies greatly across the world due to differences in geological history and rock formations. Supplies are uneven in both quantity and quality, depending on how and where the fuels formed and became trapped underground.
Geology of coal formation
Coal is a sedimentary rock formed when plant material gets buried and geological processes like heating transform it over time.
Coal quality variations:
- Anthracite - The highest-quality coal.
- Lignite - The lowest-quality coal.
Geology of oil and natural gas formation
Oil and natural gas require specific conditions to form and be stored. Organic-rich rocks are heated and compressed, breaking down into oil and gas.
Key processes and structures:
- Burial of organic-rich rocks leads to heating and compression, producing oil at moderate temperatures and gas at higher ones (deeper underground).
- The fuels migrate upwards through pores in permeable rocks, such as sandstone.
- They become trapped when they encounter an impermeable cap rock, like mudstone, preventing further movement.
- In shale formations, which are impermeable, it is difficult to extract oil and gas. Hydraulic fracturing, or fracking, is used to extract the fuel.
Major producing countries and their outputs
Some countries dominate fossil fuel production due to their naturally occurring fossil fuels and the investment capacity to exploit them. Production levels in 2021 highlight global leaders.
Top producers by fuel type
Coal production:
| Country | Coal produced (TWh, approx.) |
|---|---|
| China | 23,500 |
| Indonesia | 4,300 |
| India | 3,900 |
| Australia | 3,600 |
| USA | 3,100 |
Natural gas production:
| Country | Natural gas produced (TWh, approx.) |
|---|---|
| USA | 9,200 |
| Russia | 6,800 |
| Iran | 2,400 |
| China | 2,100 |
| Qatar | 1,600 |
Oil production:
| Country | Oil produced (TWh, approx.) |
|---|---|
| USA | 8,150 |
| Saudi Arabia | 6,100 |
| Russia | 5,900 |
| Canada | 2,950 |
| Iraq | 2,200 |
Patterns of fossil fuel consumption and demand
Demand for fossil fuels is driven by population size, economic development, and energy needs. Consumption patterns often differ from production, leading to international trade. Highly populated or industrialising countries tend to use the most, but trends are shifting towards renewables in developed nations.
Factors influencing demand
- Population impact - Nations with large populations tend to consume vast amounts of fossil fuels.
- Economic development - Rapid industrialisation boosts demand, but developed countries are diversifying into renewables to reduce reliance on fossil fuels.
Demand is highest in countries with large populations and growing economies, as they require energy for industry, transport, and electricity.
Top consumers by fuel type
Consumption data from 2021 reveals key users.
Coal consumption:
| Country | Coal consumed (TWh, approx.) |
|---|---|
| China | 23,800 |
| India | 5,600 |
| USA | 2,600 |
| Japan | 950 |
| South Africa | 880 |
Natural gas consumption:
| Country | Natural gas consumed (TWh, approx.) |
|---|---|
| USA | 8,200 |
| Russia | 4,700 |
| China | 3,900 |
| Iran | 2,450 |
| Canada | 1,750 |
Oil consumption:
| Country | Oil consumed (TWh, approx.) |
|---|---|
| USA | 9,900 |
| China | 8,600 |
| India | 2,400 |
| Russia | 2,100 |
| Japan | 1,700 |
Mismatches between global supply and demand
There is often a disconnect between where fossil fuels are produced and where they are needed most, creating a mismatch between supply and demand across the world.
Causes of supply-demand mismatch
The uneven distribution of fossil fuels stems from geology, while demand is shaped by human factors like population size and level of economic development.
Trends in global consumption
Emerging economies like China and India are now the biggest consumers, driven by rapid development. Developed countries, while still using significant amounts, are shifting towards renewable energy sources to create a more diverse energy mix.