**2. Meaning of energy security**

A clear conceptualization of energy security is essential for an efficient and effective pursuit of this policy goal. The literature on energy security is however characterized by widely differing and sometimes inconsistent definitions of the concept. This is partly because various authors on the subject have tended to focus on different sources of risk and conducted studies that differ in the scope of the impacts of the various risks. The International Energy Agency (IEA) that was formed in the 1970s to coordinate a robust response to disruptions to oil supplies defines energy security as the uninterrupted availability of energy sources at an affordable price. Bohi and Toman [8, 9] define energy insecurity as the loss of welfare that may occur as a result of a change in the price or availability of energy. Cherp and Jewell [10] assert that energy security is an instance of security in general and define energy security as "low vulnerability of vital energy systems". Winzer [11] notes that energy security is commonly defined by incorporating the context. Thus, in the United States, the focus of energy security has traditionally been on the reduction of vulnerability to political extortion following the economic hardships experienced in the aftermath of the oil embargo by the Organization of Petroleum Exporting Countries (OPEC) in the 1970s. This is also the reason why policy makers in the United States strongly support the goals of energy independence and raising the shares of renewable energy. Winzer [11] further notes that in several developing countries, the goal of energy security has been to protect the poor against commodity price volatility. He defines energy security as continuity of energy supplies relative to energy demand. According to Andrews [12] and Jun et al. [13], energy security means assuring adequate, reliable supplies of energy at reasonable prices and in ways that do not jeopardize major national values and objectives. Intharak et al. [14] define energy security as the ability of an economy to guarantee the availability of energy supply in a sustainable and timely manner with the energy price being at a level that will not adversely affect economic performance. Their definition thus embodies three fundamental aspects, namely, physical energy security which is the availability and accessibility of energy supply sources; economic energy security which is the affordability of resource acquisition and energy infrastructure development; and, environmental sustainability which entails using energy resources in ways that meet the needs of the present without compromising the ability of future generations to meet their own needs [15]. According to

#### *Towards Energy Security for the Twenty-First Century DOI: http://dx.doi.org/10.5772/intechopen.90872*

from the threats of disruption to energy supplies and the destabilizing effects of such disruptions to their economies and energy markets [5, 6]. Examples of such disruption include the 1973 and 1979 oil crises, the disruption of world oil supplies during the Persian Gulf wars, and the disruption of natural gas supplies to Ukraine in 2014 due to disagreements with Russia [7]. More recently concerns have emerged from energy supply and storage infrastructure due to natural disasters and terrorism. For countries such as the United States, these challenges are intricately linked to their national security. For poor countries, these challenges have undermined their prospects of economic development and constrained their efforts to alleviate poverty and improve the standards of living of their peoples. They have also had an adverse impact on the balance of payments. Addressing these challenges has therefore increasingly become the centrepiece of the energy policies of many countries where the issue is being framed as one of enhancing energy security. This chapter examines energy security with a focus on its nature and meaning, its multiple dimensions, the indicators currently being used to measure energy security, and

some policy measures that can be used to enhance energy security.

A clear conceptualization of energy security is essential for an efficient and effective pursuit of this policy goal. The literature on energy security is however characterized by widely differing and sometimes inconsistent definitions of the concept. This is partly because various authors on the subject have tended to focus on different sources of risk and conducted studies that differ in the scope of the impacts of the various risks. The International Energy Agency (IEA) that was formed in the 1970s to coordinate a robust response to disruptions to oil supplies defines energy security as the uninterrupted availability of energy sources at an affordable price. Bohi and Toman [8, 9] define energy insecurity as the loss of welfare that may occur as a result of a change in the price or availability of energy. Cherp and Jewell [10] assert that energy security is an instance of security in general and define energy security as "low vulnerability of vital energy systems". Winzer [11] notes that energy security is commonly defined by incorporating the context. Thus, in the United States, the focus of energy security has traditionally been on the reduction of vulnerability to political extortion following the economic hardships experienced in the aftermath of the oil embargo by the Organization of Petroleum Exporting Countries (OPEC) in the 1970s. This is also the reason why policy makers in the United States strongly support the goals of energy independence and raising the shares of renewable energy. Winzer [11] further notes that in several developing countries, the goal of energy security has been to protect the poor against commodity price volatility. He defines energy security as continuity of energy supplies relative to energy demand. According to Andrews [12] and Jun et al. [13], energy security means assuring adequate, reliable supplies of energy at reasonable prices and in ways that do not jeopardize major national values and objectives. Intharak et al. [14] define energy security as the ability of an economy to guarantee the availability of energy supply in a sustainable and timely manner with the energy price being at a level that will not adversely affect economic performance. Their definition thus embodies three fundamental aspects, namely, physical energy security which is the availability and accessibility of energy supply sources; economic energy security which is the affordability of resource acquisition and energy infrastructure development; and, environmental sustainability which entails using energy resources in ways that meet the needs of the present without compromising

the ability of future generations to meet their own needs [15]. According to

**2. Meaning of energy security**

*Energy Policy*

**16**

Grubb et al. [16] and Kruyt et al. [17], security of supply is a system's ability to provide a flow of energy to meet demand in an economy in a manner and price that does not disrupt the course of the economy. They further point out that non-secure energy systems are characterized by sharp energy price increases, reduction in quality, sudden supply interruptions, and long-term disruptions of supply. Sovacool [18–21], Sovacool and Brown [22], Sovacool and Mukherjee [23], Sovacool et al. [24], Brown and Sovacool [25], and Badea et al. [26] define energy security as equitably providing available, affordable, reliable, efficient, and environmentally benign energy services to end users. Brown et al. [27] opine that energy security has to do with questions of reliable energy supplies, regional concentration of energy resources, and the implications of strategic withholding of energy. They point out specific aspects of energy security such as electricity reliability, natural gas and petroleum security, and the vulnerability of the entire energy supply chain. They also maintain that robust global coordination of responses to energy supply shock is critical to energy security. According to APERC [28], energy security consists of 4A's namely, availability, accessibility, acceptability, and affordability.

Although the definitions of energy security provided above are not exhaustive, they all illustrate the importance of energy security, its multi-dimensional nature, and why many countries regard it as a policy priority. In the short-term, energy security concerns focus on the ability of the energy system to react promptly to sudden changes in the supply–demand balance. In the long-term, energy security concerns have to do with timely investments in energy supply in line with economic developments and environmental needs. At the multilateral and global levels, energy security has continued to receive increasing attention as evidenced by Sustainable Development Goal 7 of the United Nations that requires countries to ensure access to affordable, reliable, sustainable, and modern energy for all.

### **3. Indicators of energy security**

Several indicators have been proposed for assessing the energy security risks that various countries face, how the energy security situations have been changing over time, and how energy security is impacted by the energy policies of these countries. Estimates of these indicators are valuable in developing energy security strategies that take into account countries' energy resource endowments, market conditions, vulnerabilities to energy supply shocks, and technological progress. In what follows I present some energy security indicators, explain their use in assessing energy security, and provide energy security metrics for selected countries.

#### **3.1 Energy reserves**

Energy reserves refer to the estimated quantity of energy sources (e.g. coal, gas, or oil) known to exist with reasonable certainty, and which can be recovered with presently available technology at an economically viable cost. A country's energy resources and the extent to which they are developed is an important determinant of energy security. In general, countries with vast energy resources are more energy secure compared to those with meagre energy resources. Over time, however, changes can occur that alter a country's energy resources and thus improve or worsen its energy security. For example, the discovery of vast oil and gas resources in the North Sea had a significant impact on Norway's economy and energy security and made Norway a rich oil-exporting country [29]. This is also the case with countries which have recently discovered new energy reserves. **Table 1** presents


#### **Table 1.**

*Proved oil reserves in thousand million barrels 1980–2017 [30].*


technologies, or other policies. At the world level, the existing coal reserves can last for about 134 years. The existing coal stocks can last for periods ranging from 53 years for the Middle East and Africa to about 335 years for North America. Based on these results it can be inferred that in the short to medium term, there will be continued energy security with respect to coal availability and utilization. Although concerted efforts are currently being made to reduce the use of coal as part of measures to mitigate climate change, the use of coal will continue to be significant for certain regions of the world. It however implies that coal will play an increasingly smaller role in energy security in the coming years. This could change if significant progress

*Proved coal reserves in millions of tonnes and reserves to production ratio [30].*

*Towards Energy Security for the Twenty-First Century DOI: http://dx.doi.org/10.5772/intechopen.90872*

North America 258,709 335 South & Central America 14,016 141 CIS 223,228 397 Europe 100,405 159 Middle East and Africa 14,420 53 Asia Pacific 424,234 79 **World 1,035,012 134**

**End of 2017 R/P ratio**

**1980 1990 2000 2010 2017**

Consumption 928.4 923.2 1060.6 1040.5 1056.4

Consumption 170.9 176.2 235.1 299.4 317.0

Consumption 779.2 729.4 762.5 734.2 708.3

Consumption 421.5 399.1 169.1 178.6 196.3

Consumption 93.7 166.5 239.0 356.9 404.4

Consumption 69.6 95.6 118.4 164.4 189.3

Consumption 515.4 664.2 998.3 1302.1 1598.0

Consumption **2978.7 3154.1 3583.1 4076.0 4469.7**

in the carbon capture and storage technologies results in greater use of coal.

and consumption of oil can serve as a valuable indicator of energy security.

Being the predominant source of energy in most of the world, the production

North America Production 670.7 654.5 642.5 638.6 916.8

South and Central America Production 194.7 234.0 345.0 378.5 368.3

Europe Production 143.4 217.9 332.5 196.7 162.6

CIS Production 603.2 570.3 396.4 663.1 699.6

Middle East Production 934.0 837.4 1146.9 1220.0 1481.1

Africa Production 300.5 317.0 371.6 481.5 383.3

Asia Pacific Production 244.8 325.9 381.3 403.0 375.5

**World** Production **3091.3 3157.0 3616.2 3981.4 4387.1**

*Oil production and consumption in millions of tonnes from 1980 to 2017 [30].*

**3.2 Energy production and consumption**

**Table 3.**

**Table 4.**

**19**

#### **Table 2.**

*Proved natural gas reserves in trillions of cubic metres [30].*

estimates for the proved oil reserves for various geographic regions for selected years from 1980 to 2017. Estimates for natural gas are presented in **Table 2**.

**Table 1** shows that the Middle East has the greatest quantity of proven oil reserves followed by North America. Although these two regions account for more than 50% of the world's total proven oil reserves, this fact alone own does not confer on the regions the greatest energy security. Assessing oil security requires a consideration of additional factors such as oil production and consumption and how these are evolving over time. **Table 1** also shows that over time, with the exception of Europe, several regions of the world have reported an increase in their proven oil reserves thus suggesting an improvement in oil security. The case of the United States is particularly significant given that it has in recent years considerably expanded its production and reduced its dependence on oil imports. This has been possible through the shale revolution and also through changes to regulations to permit the drilling and extraction of oil in previously proscribed areas.

**Table 2** shows that the Middle East has the largest proven natural gas reserves followed by the CIS. Like the case of oil, most regions of the world have reported an increase in proven natural gas reserves from 1980 to 2017. The exception is Europe whose proven natural gas reserves have declined. The proven reserves of oil and natural gas are a good indicator of the existence or otherwise of potential that can be developed to improve the energy security.

**Table 3** shows the proven reserves of coal and the reserve-to-production ratios (R/P ratios) for the various regions at the end of 2017. R/P ratios estimate the time period remaining for the different regions to exhaust their known coal stocks given the current rates of extraction, assuming no changes in existing stocks,


#### **Table 3.**

estimates for the proved oil reserves for various geographic regions for selected years from 1980 to 2017. Estimates for natural gas are presented in **Table 2**. **Table 1** shows that the Middle East has the greatest quantity of proven oil reserves followed by North America. Although these two regions account for more than 50% of the world's total proven oil reserves, this fact alone own does not confer on the regions the greatest energy security. Assessing oil security requires a consideration of additional factors such as oil production and consumption and how these are evolving over time. **Table 1** also shows that over time, with the exception of Europe, several regions of the world have reported an increase in their proven oil reserves thus suggesting an improvement in oil security. The case of the United States is particularly significant given that it has in recent years considerably expanded its production and reduced its dependence on oil imports. This has been possible through the shale revolution and also through changes to regulations to

**1980 1990 2000 2010 2017**

**1980 1990 2000 2010 2017**

North America 123.3 125.4 232.1 221.5 226.1 South and Central America 26.9 71.5 97.9 325.2 330.1 CIS 67.0 58.4 120.5 144.5 144.9 Europe 16.6 17.5 20.6 13.4 13.4 Middle East 362.4 659.6 696.7 765.9 807.7 Africa 53.4 58.7 93.0 124.5 126.5 Asia Pacific 33.9 36.3 40.1 48.0 48.0 **World 683.5 1027.5 1300.9 1643.1 1696.6**

North America 9.6 9.2 7.2 10.5 10.8 South and Central America 2.8 5.5 7.3 8.1 8.2 CIS 20.5 34.9 40.3 50.0 59.2 Europe 4.2 5.2 4.7 4.4 3.0 Middle East 24.2 37.2 58.3 78.2 79.1 Africa 5.7 9.0 11.9 14.0 13.8 Asia Pacific 4.5 9.0 11.1 14.9 19.3 **World 71.6 109.3 140.9 180.1 193.5**

permit the drilling and extraction of oil in previously proscribed areas.

the current rates of extraction, assuming no changes in existing stocks,

developed to improve the energy security.

**Table 1.**

*Energy Policy*

**Table 2.**

**18**

*Proved oil reserves in thousand million barrels 1980–2017 [30].*

*Proved natural gas reserves in trillions of cubic metres [30].*

**Table 2** shows that the Middle East has the largest proven natural gas reserves followed by the CIS. Like the case of oil, most regions of the world have reported an increase in proven natural gas reserves from 1980 to 2017. The exception is Europe whose proven natural gas reserves have declined. The proven reserves of oil and natural gas are a good indicator of the existence or otherwise of potential that can be

**Table 3** shows the proven reserves of coal and the reserve-to-production ratios (R/P ratios) for the various regions at the end of 2017. R/P ratios estimate the time period remaining for the different regions to exhaust their known coal stocks given *Proved coal reserves in millions of tonnes and reserves to production ratio [30].*

technologies, or other policies. At the world level, the existing coal reserves can last for about 134 years. The existing coal stocks can last for periods ranging from 53 years for the Middle East and Africa to about 335 years for North America. Based on these results it can be inferred that in the short to medium term, there will be continued energy security with respect to coal availability and utilization. Although concerted efforts are currently being made to reduce the use of coal as part of measures to mitigate climate change, the use of coal will continue to be significant for certain regions of the world. It however implies that coal will play an increasingly smaller role in energy security in the coming years. This could change if significant progress in the carbon capture and storage technologies results in greater use of coal.
