**3.2 Energy production and consumption**


Being the predominant source of energy in most of the world, the production and consumption of oil can serve as a valuable indicator of energy security.

#### **Table 4.**

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

The production and consumption of oil for various regions from 1980 to 2017 is shown in **Table 4** and depicted in **Figures 1**–**8**. At the global scale, both the production and consumption of oil have been growing over time with the oil production consistently matching the oil consumption. This implies that the world has the potential to be energy secure if robust mechanisms are implemented to facilitate the flow of oil from regions with oil surpluses to those with oil deficits. For North America, Europe and Asia Pacific, the oil consumption has consistently exceeded the oil production while for Africa, the Middle East, the CIS, and Central and South America, the oil production has over time been greater than the oil consumption. The United States has for several decades been the largest consumer of oil in the world and has relied considerably on oil imports to bridge the gap between its production and consumption of oil. This has been a major policy concern in the US

**Figure 3.**

**Figure 4.**

**Figure 5.**

**21**

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

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

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

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

**Figure 1.**

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

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

#### **Figure 3.**

The production and consumption of oil for various regions from 1980 to 2017 is shown in **Table 4** and depicted in **Figures 1**–**8**. At the global scale, both the production and consumption of oil have been growing over time with the oil production consistently matching the oil consumption. This implies that the world has the potential to be energy secure if robust mechanisms are implemented to facilitate the flow of oil from regions with oil surpluses to those with oil deficits. For North America, Europe and Asia Pacific, the oil consumption has consistently exceeded the oil production while for Africa, the Middle East, the CIS, and Central and South America, the oil production has over time been greater than the oil consumption. The United States has for several decades been the largest consumer of oil in the world and has relied considerably on oil imports to bridge the gap between its production and consumption of oil. This has been a major policy concern in the US

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

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

**Figure 1.**

*Energy Policy*

**Figure 2.**

**20**

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

**Figure 4.**

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

**Figure 5.** *Oil production and consumption for CIS in millions of tonnes from 1980 to 2017 [30].*

to provide outdoor lighting, as a fuel in combined heat and power systems, as a fuel to operate compressors that move natural gas through pipelines, to generate electricity, and as a vehicle fuel in the form of compressed natural gas and liquified natural gas. Natural gas is also used as a raw material to produce chemicals, fertil-

**Table 5** presents data on the production and consumption of natural gas in various world regions from 1970 to 2017. **Figure 9** depicts the global production and consumption of natural gas over the same period. Overall, both the production and

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

North America Production 636.5 621.4 613.2 728.3 775.9 951.5

South & Central America Production 18.7 35.3 60.3 103.1 163.8 179.0

Europe Production 104.5 229.5 215.5 293.5 289.5 241.9

CIS Production 187.5 412.2 764.1 661.6 755.9 815.5

Middle East Production 10.5 34.4 101.8 206.5 481.6 659.9

Africa Production 3.0 24.8 72.2 135.1 206.1 225.0

Asia Pacific Production 15.1 71.9 149.3 277.4 496.5 607.5

**World Production 975.8 1429.6 1976.3 2405.5 3169.3 3680.4**

*Natural gas production and consumption in billions of cubic metres from 1970 to 2017 [30].*

**1970 1980 1990 2000 2010 2017**

Consumption 619.5 605.8 607.6 753.5 803.0 942.8

Consumption 18.8 36.1 59.6 97.8 150.1 173.4

Consumption 108.5 280.7 360.8 484.0 567.7 531.7

Consumption 189.5 377.1 632.1 527.2 588.7 574.6

Consumption 9.4 31.9 96.7 185.6 385.6 536.5

Consumption 1.6 18.7 39.9 55.7 102.5 141.8

Consumption 14.2 73.6 152.0 298.2 578.3 769.6

**Consumption 961.4 1423.8 1948.7 2402.0 3175.9 3670.4**

izers and hydrogen.

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

**Figure 8.**

**Table 5.**

**23**

#### **Figure 7.**

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

and partly explains the country's preoccupation with the goal of energy independence since the oil crises of the 1970s.

The data in **Table 4** also shows that the Middle East and the CIS have had the greatest oil surpluses while Europe has had the greatest oil deficit. From this broad picture that is based on aggregated regional data, we can infer that relative to other regions, Europe and Asia Pacific have the greatest oil insecurity, while the Middle East, Africa, and the CIS are the least oil insecure. In the recent past, the oil consumption in the Asia Pacific has grown rapidly due to its high population and economic growth rates.

Natural gas constitutes a significant share of the energy mix of several countries and contributes critically to their energy security. It is used for heating buildings and water, to cook, to operate refrigeration and cooling equipment, to dry clothes,

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

to provide outdoor lighting, as a fuel in combined heat and power systems, as a fuel to operate compressors that move natural gas through pipelines, to generate electricity, and as a vehicle fuel in the form of compressed natural gas and liquified natural gas. Natural gas is also used as a raw material to produce chemicals, fertilizers and hydrogen.

**Table 5** presents data on the production and consumption of natural gas in various world regions from 1970 to 2017. **Figure 9** depicts the global production and consumption of natural gas over the same period. Overall, both the production and

#### **Figure 8.**

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


**Table 5.**

*Natural gas production and consumption in billions of cubic metres from 1970 to 2017 [30].*

and partly explains the country's preoccupation with the goal of energy indepen-

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

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

The data in **Table 4** also shows that the Middle East and the CIS have had the greatest oil surpluses while Europe has had the greatest oil deficit. From this broad picture that is based on aggregated regional data, we can infer that relative to other regions, Europe and Asia Pacific have the greatest oil insecurity, while the Middle East, Africa, and the CIS are the least oil insecure. In the recent past, the oil consumption in the Asia Pacific has grown rapidly due to its high population and

Natural gas constitutes a significant share of the energy mix of several countries and contributes critically to their energy security. It is used for heating buildings and water, to cook, to operate refrigeration and cooling equipment, to dry clothes,

dence since the oil crises of the 1970s.

economic growth rates.

**Figure 6.**

*Energy Policy*

**Figure 7.**

**22**

consumption of natural gas have been increasing over time with the production increasing to match the consumption.

According to the data in **Table 5** and **Figures 10** and **11**, North America, the CIS, the Middle East and Africa produced at least as much natural gas as they consumed in 2017. For the Middle East and the CIS, the natural gas production was significantly higher than the consumption making these regions important global exporters of natural gas. For Europe and Asia Pacific, the production of natural gas has tended to be significantly less than the consumption necessitating the heavy reliance of these regions on large natural gas imports to meet their demands. For the Asia Pacific region, the consumption of natural gas has in recent years been rising rapidly due to robust economic growth and the high population in the region. The

situation in Europe is considerably tighter as evidenced by the fact that in 2017 the production of natural gas was less than half the amount consumed in the region thus implying a high dependence on natural gas imports. In the foreseeable future, natural gas security in Europe and the Asia Pacific region will depend on stable, well-integrated efficient natural gas markets that can ensure adequate, reliable and

The shortage of natural gas in China in the winter of 2017 is a recent example of how the demand and supply of natural gas can impact energy security. The primary cause of the shortage was China's decision to curb reliance on dirty coal so as to reduce urban air pollution and improve the overall quality of the environment. This shift in policy triggered an increase in the demand for natural gas and a rise in its price not only to consumers in China but also for other natural gas importers [31, 32]. The shortage of natural gas in China and the spike in its price occurred despite a glut in global supply and was due to infrastructure and logistical constraints. Achieving natural gas security therefore requires not only initiatives aimed at boosting natural gas production, but also complementary measures such as increased investments in distribution infrastructure and improving LNG shipping

Electricity is critically important to most economies around the world and its

decarbonizing their power sectors. Electricity is also important in efforts to eliminate poverty and transform the world into a safe, equitable and environmentally sustainable place [33]. Today, however, many countries are facing massive challenges in electricity security due to rapidly increasing demand and supply constraints. **Table 6** shows the production and consumption of electricity for various regions from 1990 to 2017. With the exception of the CIS where the electricity production fell by about 7% between 1990 and 2017, in all other regions electricity production increased with the greatest percentage increase being in Asia (400%)

The consumption of electricity has been increasing rapidly in most part of the world with the main drivers being industrial and economic growth, and population

role is expected to increase in the future as countries pursue the goal of

affordable supplies.

*Regional shares of natural gas consumption in 2017 [30].*

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

**Figure 11.**

capacity.

**25**

and the Middle East (387.7%).

**Figure 9.**

*Global natural gas production and consumption in billions of cubic metres from 1970 to 2017 [30].*

**Figure 10.** *Regional shares of natural gas production in 2017 [30].*

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

consumption of natural gas have been increasing over time with the production

According to the data in **Table 5** and **Figures 10** and **11**, North America, the CIS, the Middle East and Africa produced at least as much natural gas as they consumed in 2017. For the Middle East and the CIS, the natural gas production was significantly higher than the consumption making these regions important global

exporters of natural gas. For Europe and Asia Pacific, the production of natural gas has tended to be significantly less than the consumption necessitating the heavy reliance of these regions on large natural gas imports to meet their demands. For the Asia Pacific region, the consumption of natural gas has in recent years been rising rapidly due to robust economic growth and the high population in the region. The

*Global natural gas production and consumption in billions of cubic metres from 1970 to 2017 [30].*

increasing to match the consumption.

*Energy Policy*

**Figure 9.**

**Figure 10.**

**24**

*Regional shares of natural gas production in 2017 [30].*

**Figure 11.** *Regional shares of natural gas consumption in 2017 [30].*

situation in Europe is considerably tighter as evidenced by the fact that in 2017 the production of natural gas was less than half the amount consumed in the region thus implying a high dependence on natural gas imports. In the foreseeable future, natural gas security in Europe and the Asia Pacific region will depend on stable, well-integrated efficient natural gas markets that can ensure adequate, reliable and affordable supplies.

The shortage of natural gas in China in the winter of 2017 is a recent example of how the demand and supply of natural gas can impact energy security. The primary cause of the shortage was China's decision to curb reliance on dirty coal so as to reduce urban air pollution and improve the overall quality of the environment. This shift in policy triggered an increase in the demand for natural gas and a rise in its price not only to consumers in China but also for other natural gas importers [31, 32]. The shortage of natural gas in China and the spike in its price occurred despite a glut in global supply and was due to infrastructure and logistical constraints. Achieving natural gas security therefore requires not only initiatives aimed at boosting natural gas production, but also complementary measures such as increased investments in distribution infrastructure and improving LNG shipping capacity.

Electricity is critically important to most economies around the world and its role is expected to increase in the future as countries pursue the goal of decarbonizing their power sectors. Electricity is also important in efforts to eliminate poverty and transform the world into a safe, equitable and environmentally sustainable place [33]. Today, however, many countries are facing massive challenges in electricity security due to rapidly increasing demand and supply constraints. **Table 6** shows the production and consumption of electricity for various regions from 1990 to 2017. With the exception of the CIS where the electricity production fell by about 7% between 1990 and 2017, in all other regions electricity production increased with the greatest percentage increase being in Asia (400%) and the Middle East (387.7%).

The consumption of electricity has been increasing rapidly in most part of the world with the main drivers being industrial and economic growth, and population


**Table 6.**

*Electricity production and consumption in terawatt Hours (TWH) from 1970 to 2017 [30].*

increase. **Figure 12** depicts the consumption of electricity for the various regions in 1990 and 2017. It is evident from **Figure 12** that the greatest absolute increase in electricity consumption over this period occurred in Asia where electricity consumption increased by 408.4% from 1923 TWH to 9777 TWH. Most of the growth in electricity consumption in Asia occurred in China, India, and Japan. Over the 1990–2017 period, the electricity consumption in China increased from 534 TWH to 5683 TWH; that in India increased from 215 TWH to 1156 TWH; and, that in Japan increased from 781 TWH to 1019 TWH. These increases in electricity consumption occurred despite strong energy efficiency improvements.

The electricity production and consumption data for the various regions for 2017 that is plotted in **Figure 13**, shows that although both electricity production and consumption have been increasing over time, the production of electricity exceeded its consumption. Therefore, the inference can be made that at the regional level, potential exists for achieving electricity security in the short to medium term. The broad picture presented in **Figure 13** masks the electricity supply and demand conditions in specific countries and how the electricity is produced and consumed in those countries. It also masks the fact that due to grid and storage losses, not all of the electricity produced is available for consumption.

balances, it can be inferred that regions with positive energy trade balances are more energy insecure compared to those with negative energy trade balances. **Figure 14** depicts the energy trade balances for various regions for 2017 and shows that the largest energy net importers were Asia and Europe and the largest net exporters were the Middle East and the CIS. Europe's energy security situation is precarious because of dwindling energy supplies that have necessitated increasing reliance on energy imports. Importation of less expensive energy into Europe from regions such as the Middle East is a more attractive option compared to more costly efforts to develop the region's own energy resources. As producers of large quantities of cheap energy, the Middle East and the CIS will continue to play a significant role in the global energy scene in the short to medium term. It is worth noting that several major changes are currently occurring in global energy markets and that these changes will have profound implications on energy security in the coming years. An example of such a change is the increase in energy production in the United States that has changed the country's status from a net energy importer to a

*Electricity production and consumption in terawatt hours (TWH) for 2017 [30].*

*Electricity consumption in terawatt hours (TWH) for 1990 and 2017 [30].*

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

net energy exporter.

**27**

**Figure 12.**

**Figure 13.**

#### **3.3 Energy trade balances**

At particular times, specific countries or regions often have imbalances in their demand and supply of energy that are met through imports and exports. Whether a country is a net importer or exporter of energy is indicated by their energy trade balance that is computed as the difference between energy imports and exports. Countries that are net energy exporters have negative energy trade balances while net energy importers have positive energy trade balances. Based on energy trade

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

**Figure 12.** *Electricity consumption in terawatt hours (TWH) for 1990 and 2017 [30].*

#### **Figure 13.**

increase. **Figure 12** depicts the consumption of electricity for the various regions in 1990 and 2017. It is evident from **Figure 12** that the greatest absolute increase in electricity consumption over this period occurred in Asia where electricity consumption increased by 408.4% from 1923 TWH to 9777 TWH. Most of the growth in electricity consumption in Asia occurred in China, India, and Japan. Over the 1990–2017 period, the electricity consumption in China increased from 534 TWH to 5683 TWH; that in India increased from 215 TWH to 1156 TWH; and, that in Japan increased from 781 TWH to 1019 TWH. These increases in electricity consumption

North America Production 3701 4658 4982 4963 34.1

Latin America Production 605 982 1375 1590 162.8

Europe Production 2900 3438 3865 3886 34.0

CIS Production 1676 1250 1483 1566 6.6

Middle East Production 244 472 892 1190 387.7

Africa Production 319 446 675 818 156.4

Asia Production 2259 4024 7983 11,274 399.1

Pacific Production 190 253 302 304 60.0

*Electricity production and consumption in terawatt Hours (TWH) from 1970 to 2017 [30].*

Consumption 3146 4093 4415 4379 39.2

Consumption 506 788 1129 1312 159.3

Consumption 2516 2952 3377 3377 34.2

Consumption 1417 1000 1203 1257 11.3

Consumption 213 400 742 977 358.7

Consumption 263 379 554 663 152.1

Consumption 1923 3369 6869 9777 408.4

Consumption 165 218 265 273 65.5

**1990 2000 2010 2017 % Change**

The electricity production and consumption data for the various regions for 2017 that is plotted in **Figure 13**, shows that although both electricity production and consumption have been increasing over time, the production of electricity exceeded its consumption. Therefore, the inference can be made that at the regional level, potential exists for achieving electricity security in the short to medium term. The broad picture presented in **Figure 13** masks the electricity supply and demand conditions in specific countries and how the electricity is produced and consumed in those countries. It also masks the fact that due to grid and storage losses, not all of

At particular times, specific countries or regions often have imbalances in their demand and supply of energy that are met through imports and exports. Whether a country is a net importer or exporter of energy is indicated by their energy trade balance that is computed as the difference between energy imports and exports. Countries that are net energy exporters have negative energy trade balances while net energy importers have positive energy trade balances. Based on energy trade

occurred despite strong energy efficiency improvements.

the electricity produced is available for consumption.

**3.3 Energy trade balances**

**26**

**Table 6.**

*Energy Policy*

*Electricity production and consumption in terawatt hours (TWH) for 2017 [30].*

balances, it can be inferred that regions with positive energy trade balances are more energy insecure compared to those with negative energy trade balances. **Figure 14** depicts the energy trade balances for various regions for 2017 and shows that the largest energy net importers were Asia and Europe and the largest net exporters were the Middle East and the CIS. Europe's energy security situation is precarious because of dwindling energy supplies that have necessitated increasing reliance on energy imports. Importation of less expensive energy into Europe from regions such as the Middle East is a more attractive option compared to more costly efforts to develop the region's own energy resources. As producers of large quantities of cheap energy, the Middle East and the CIS will continue to play a significant role in the global energy scene in the short to medium term. It is worth noting that several major changes are currently occurring in global energy markets and that these changes will have profound implications on energy security in the coming years. An example of such a change is the increase in energy production in the United States that has changed the country's status from a net energy importer to a net energy exporter.

increased rapidly from \$13 per barrel in mid-1979 to about \$34 per barrel in mid-1980. Both these oil shocks threated the energy security of oil-importing countries,

In several developing countries, a significant fraction of the population cannot access modern energy due to the high energy prices. In Kenya, for example, where the majority of the population use Kerosene for cooking and lighting, the price of kerosene has recently risen rapidly thus inducing low income households to reduce their use of kerosene and shift towards wood fuel. Although liquefied natural gas is available, its high price has limited its use to medium and highincome households. Further energy price increases can be expected as energy markets are increasingly deregulated and energy subsidies eliminated. To the extent that these measures reduce energy affordability, they have an adverse effect on household energy security. This brief discussion of energy prices underscores the fact that a strong correlation exists between energy prices and energy security and that, in general, energy security will be compromised when energy prices are rising rapidly. These broad conclusions can be extended to other energy

All else equal, economies that depend on a limited portfolio of non-renewable energy sources are less energy secure compared to those endowed with an abundance of diverse energy supplies [34]. Energy systems that are diverse are more resilient and adaptable to shocks in energy supplies. The Russian-Ukrainian gas crisis is an example of the vulnerability that can result from dependence on a single supplier of energy. In January 2006 following disagreements about the price of natural gas and the cost of transit, Russia cut off all gas supplies passing through Ukraine thus adversely affecting several European nations. In January 2009, disagreements about natural gas price again resulted in the disruption of natural gas supplies from Russia to 18 European nations. The severity of this threat to Europe's energy security stems from the fact that Russia provides about 25% of the natural gas consumed in the European Union and that approximately 80% of natural gas exports from Russia to the European Union are through pipelines across Ukraine. The Southern Gas Corridor (SGC) was started as a response to the overdependence of many countries in Central and South East Europe on Russia to meet most or all of their natural gas requirements. The overarching goal of the SGC was to enhance EU's energy security by diversifying the routes and sources of gas supplies to the EU [35, 36]. This strategic objective has been achieved through the construction of a system of pipelines that can bring natural gas from the Caspian Basin, Central Asia, the Middle East, and the Eastern Mediterranean Basin into Europe thus reducing the

The contribution of diversity to energy security also applies to other domains such as transportation fuels and the generation of electricity. In the transportation sector, the fuels that are mostly used are gasoline and diesel due to their high energy content. Some measures that are currently being undertaken to enhance transportation energy security are developing and promoting the use of alternative fuels such as ethanol, natural gas, biodiesel, hydrogen, propane, methanol and electricity (as in the case of battery-powered electric and fuel-cell vehicles). In addition to reducing dependence on fossil fuels, the use of these alternative fuels has been cited as having the potential to drastically lower the emissions of greenhouse gases and thus mitigate the risk climate change. There are however several controversies associated with the increased use of alternative transportation fuels as a strategy for diversifying the energy mix. For example, the simulation model developed by

reduced economic activity, and increased inflation.

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

sources such as electricity and natural gas.

dependence on Russian natural gas supplies [35].

**3.5 Energy diversity**

**29**

**Figure 14.**

*Energy trade balance in megatons of oil equivalent (Mtoe) in 2017 [30].*

#### **3.4 Energy prices**

In general, energy prices are determined by the supply and demand conditions in energy markets and also by the policies and regulations such as taxes and subsidies that governments may make to regulate these markets and achieve particular outcomes. Energy prices are an important indicator of energy security to the extent that they embody information about energy scarcity and energy affordability and also play a central role in energy investment decisions. The crude oil prices from 1970 to 2017 are depicted in **Figure 15**. Although the crude oil prices have fluctuated widely over this period, the general trend has been upward. In 1973 the world oil market was significantly impacted by the oil embargo by the Organization of Petroleum Exporting Arab Countries (OPEC) that drastically reduced the supply of oil at a time when the demand for oil was increasing. This action resulted in the price of oil rising from US\$ 3 to US\$ 12 globally. World oil supplies were again adversely affected in 1979 in the aftermath of the Iranian Revolution and oil prices

**Figure 15.** *Crude oil prices from 1970 to 2017 in \$ 2017 [30].*

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

increased rapidly from \$13 per barrel in mid-1979 to about \$34 per barrel in mid-1980. Both these oil shocks threated the energy security of oil-importing countries, reduced economic activity, and increased inflation.

In several developing countries, a significant fraction of the population cannot access modern energy due to the high energy prices. In Kenya, for example, where the majority of the population use Kerosene for cooking and lighting, the price of kerosene has recently risen rapidly thus inducing low income households to reduce their use of kerosene and shift towards wood fuel. Although liquefied natural gas is available, its high price has limited its use to medium and highincome households. Further energy price increases can be expected as energy markets are increasingly deregulated and energy subsidies eliminated. To the extent that these measures reduce energy affordability, they have an adverse effect on household energy security. This brief discussion of energy prices underscores the fact that a strong correlation exists between energy prices and energy security and that, in general, energy security will be compromised when energy prices are rising rapidly. These broad conclusions can be extended to other energy sources such as electricity and natural gas.

#### **3.5 Energy diversity**

**3.4 Energy prices**

**Figure 14.**

*Energy Policy*

**Figure 15.**

**28**

*Crude oil prices from 1970 to 2017 in \$ 2017 [30].*

In general, energy prices are determined by the supply and demand conditions in energy markets and also by the policies and regulations such as taxes and subsidies that governments may make to regulate these markets and achieve particular outcomes. Energy prices are an important indicator of energy security to the extent that they embody information about energy scarcity and energy affordability and also play a central role in energy investment decisions. The crude oil prices from 1970 to 2017 are depicted in **Figure 15**. Although the crude oil prices have fluctuated widely over this period, the general trend has been upward. In 1973 the world oil market was significantly impacted by the oil embargo by the Organization of Petroleum Exporting Arab Countries (OPEC) that drastically reduced the supply of oil at a time when the demand for oil was increasing. This action resulted in the price of oil rising from US\$ 3 to US\$ 12 globally. World oil supplies were again adversely affected in 1979 in the aftermath of the Iranian Revolution and oil prices

*Energy trade balance in megatons of oil equivalent (Mtoe) in 2017 [30].*

All else equal, economies that depend on a limited portfolio of non-renewable energy sources are less energy secure compared to those endowed with an abundance of diverse energy supplies [34]. Energy systems that are diverse are more resilient and adaptable to shocks in energy supplies. The Russian-Ukrainian gas crisis is an example of the vulnerability that can result from dependence on a single supplier of energy. In January 2006 following disagreements about the price of natural gas and the cost of transit, Russia cut off all gas supplies passing through Ukraine thus adversely affecting several European nations. In January 2009, disagreements about natural gas price again resulted in the disruption of natural gas supplies from Russia to 18 European nations. The severity of this threat to Europe's energy security stems from the fact that Russia provides about 25% of the natural gas consumed in the European Union and that approximately 80% of natural gas exports from Russia to the European Union are through pipelines across Ukraine. The Southern Gas Corridor (SGC) was started as a response to the overdependence of many countries in Central and South East Europe on Russia to meet most or all of their natural gas requirements. The overarching goal of the SGC was to enhance EU's energy security by diversifying the routes and sources of gas supplies to the EU [35, 36]. This strategic objective has been achieved through the construction of a system of pipelines that can bring natural gas from the Caspian Basin, Central Asia, the Middle East, and the Eastern Mediterranean Basin into Europe thus reducing the dependence on Russian natural gas supplies [35].

The contribution of diversity to energy security also applies to other domains such as transportation fuels and the generation of electricity. In the transportation sector, the fuels that are mostly used are gasoline and diesel due to their high energy content. Some measures that are currently being undertaken to enhance transportation energy security are developing and promoting the use of alternative fuels such as ethanol, natural gas, biodiesel, hydrogen, propane, methanol and electricity (as in the case of battery-powered electric and fuel-cell vehicles). In addition to reducing dependence on fossil fuels, the use of these alternative fuels has been cited as having the potential to drastically lower the emissions of greenhouse gases and thus mitigate the risk climate change. There are however several controversies associated with the increased use of alternative transportation fuels as a strategy for diversifying the energy mix. For example, the simulation model developed by

Chen et al. [37] shows that although promoting greater production of food-based biofuels reduces overall fossil fuel use, it leads to a marginal reduction in the global greenhouse emissions, and a large increase in food prices. Flynn [38] noted that the adoption of compressed natural gas as an alternative transportation fuel in Canada and the United States had been slow and below the critical level which would enable suppliers to survive in a competitive market. The reasons for this outcome include the high cost of hybrid cars relative to conventional cars, the lack of infrastructure to support converted vehicles, lack of refuelling facilities, and the failure of existing refuelling stations to achieve profitability.

renewables in the final energy consumption is a policy priority of many countries as evidenced by the European Union's goal of generating 20% of its electricity from renewables by 2020 [39]. Similarly, the United States has regulations (known as the renewable portfolio standard or renewable electricity standard) obligating electricity supply companies to produce a specific fraction of their electricity from renewable energy sources [40]. In Germany, the Renewable Energy Act mandates that 35% of electricity be produced from renewable sources in 2020 and that this share be increased to 80% by 2050. **Table 7** presents data on the consumption of renewables in the US electric power sector from 1984 to 2018. Over this period, the US electric power sector experienced a significant increase in the use of renewables with wind and solar playing a dominant role. The data in **Table 7**, shows that in 2000, the share of wind and solar in the renewables used to produce electricity was only 2% and that this increased to 49% in 2018. The combined use of wind and solar in electricity production in the US is shown in **Figure 17** and the combined share of wind and solar in the total renewable energy used in the electric power sector is shown in **Figure 18**. The increased use of wind and solar energy has been facilitated by technological innovation and has not only contributed to the diversification of the energy system but also provided several other benefits such improvement in health, savings from reduced fossil use, reduced emissions of greenhouse gases, industrial growth, and the creation of thousands of clean manufacturing jobs.

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

**Hydro Geothermal Solar Wind Wood Waste Biomass Total renewable**

1984 3352.81 80.81 0.06 0.07 4.82 4.43 9.25 3442.99 1990 3014.01 160.55 3.82 29.01 128.52 187.99 316.51 3523.89 1995 3149.39 137.96 5.12 32.63 125.41 296.25 421.66 3746.77 2000 2767.92 143.76 5.03 57.06 134.32 318.43 452.75 3426.52 2005 2670.13 146.90 5.50 178.09 184.97 220.72 405.70 3406.32 2010 2521.49 148.48 11.76 923.27 195.60 263.78 459.37 4064.37 2015 2307.72 148.34 227.90 1775.71 243.86 281.02 524.88 4984.54 2018 2672.51 153.81 606.97 2530.41 215.11 280.03 495.14 6458.83

*Combined wind and solar consumption in US electric power sector from 1980 to 2018 (Trillions Btu) [30].*

*Renewable energy use in US electric power sector in trillion of Btu [30].*

**Table 7.**

**Figure 17.**

**31**

Diversifying electric power generation is an area that several countries are increasingly focusing on to enhance their overall energy security. It is driven by the increase in the demand for electricity due to factors such as population growth, greater use of electrical appliances and equipment, and the need reduce emissions of greenhouse gases. In a country such as the United States, the main energy sources for electric power generation are coal, natural gas, nuclear power and hydro. The amounts of electricity produced from these sources are shown in **Figure 16**. Although coal and nuclear power have dominated electricity production, a significant change has occurred leading to reduced use of these fuels for electricity production and greater use of natural gas that is cheaper, cleaner, and more abundant.

#### **3.6 Share of renewable energy**

In general, economies that depend on a limited portfolio of non-renewable energy sources are less energy secure than those that are endowed with abundant renewable energy sources. Renewable energy resources are attractive because their supplies are unlimited and inexhaustible so that, unlike non-renewable sources, their consumption today does not reduce the flows available in the future. If adequately developed, they can substitute for non-renewable energy and underpin the transition needed in the energy system to sustainably power economic growth and ameliorate the threat of climate change. Some of the common renewable energy resources that can be harnessed to improve energy security are biomass, hydropower, solar, wind, and geothermal energy. Presently, increasing the share of

**Figure 16.** *Electricity generation in US by energy source [30].*

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

renewables in the final energy consumption is a policy priority of many countries as evidenced by the European Union's goal of generating 20% of its electricity from renewables by 2020 [39]. Similarly, the United States has regulations (known as the renewable portfolio standard or renewable electricity standard) obligating electricity supply companies to produce a specific fraction of their electricity from renewable energy sources [40]. In Germany, the Renewable Energy Act mandates that 35% of electricity be produced from renewable sources in 2020 and that this share be increased to 80% by 2050. **Table 7** presents data on the consumption of renewables in the US electric power sector from 1984 to 2018. Over this period, the US electric power sector experienced a significant increase in the use of renewables with wind and solar playing a dominant role. The data in **Table 7**, shows that in 2000, the share of wind and solar in the renewables used to produce electricity was only 2% and that this increased to 49% in 2018. The combined use of wind and solar in electricity production in the US is shown in **Figure 17** and the combined share of wind and solar in the total renewable energy used in the electric power sector is shown in **Figure 18**. The increased use of wind and solar energy has been facilitated by technological innovation and has not only contributed to the diversification of the energy system but also provided several other benefits such improvement in health, savings from reduced fossil use, reduced emissions of greenhouse gases, industrial growth, and the creation of thousands of clean manufacturing jobs.


#### **Table 7.**

Chen et al. [37] shows that although promoting greater production of food-based biofuels reduces overall fossil fuel use, it leads to a marginal reduction in the global greenhouse emissions, and a large increase in food prices. Flynn [38] noted that the adoption of compressed natural gas as an alternative transportation fuel in Canada and the United States had been slow and below the critical level which would enable suppliers to survive in a competitive market. The reasons for this outcome include the high cost of hybrid cars relative to conventional cars, the lack of infrastructure to support converted vehicles, lack of refuelling facilities, and the failure of existing

Diversifying electric power generation is an area that several countries are increasingly focusing on to enhance their overall energy security. It is driven by the increase in the demand for electricity due to factors such as population growth, greater use of electrical appliances and equipment, and the need reduce emissions of greenhouse gases. In a country such as the United States, the main energy sources for electric power generation are coal, natural gas, nuclear power and hydro. The amounts of electricity produced from these sources are shown in **Figure 16**. Although coal and nuclear power have dominated electricity production, a significant change has occurred leading to reduced use of these fuels for electricity production and greater use of natural gas that is cheaper, cleaner, and more abundant.

In general, economies that depend on a limited portfolio of non-renewable energy sources are less energy secure than those that are endowed with abundant renewable energy sources. Renewable energy resources are attractive because their supplies are unlimited and inexhaustible so that, unlike non-renewable sources, their consumption today does not reduce the flows available in the future. If adequately developed, they can substitute for non-renewable energy and underpin the transition needed in the energy system to sustainably power economic growth and ameliorate the threat of climate change. Some of the common renewable energy resources that can be harnessed to improve energy security are biomass, hydropower, solar, wind, and geothermal energy. Presently, increasing the share of

refuelling stations to achieve profitability.

*Energy Policy*

**3.6 Share of renewable energy**

**Figure 16.**

**30**

*Electricity generation in US by energy source [30].*

*Renewable energy use in US electric power sector in trillion of Btu [30].*

**Figure 17.** *Combined wind and solar consumption in US electric power sector from 1980 to 2018 (Trillions Btu) [30].*

electricity when completed; the Rusumo Falls Hydroelectric Project in Rwanda that aims to supply about 80 MW of power to Rwanda, Tanzania and Burundi; the Lake Turkana wind power project in Kenya that will provide the country's national grid with about 300 MW of clean power; and, the Jasper Power project in the Northern Cape of South Africa that aims to generate 18 GW of clean energy by 2030. The successful completion of these and similar projects will increase the overall energy

ii. *Investments in energy efficiency*: Energy efficiency is an important instrument for stemming the growth in energy demand, providing households and firms with cost savings due to reduced energy use, and reducing the emissions of greenhouse gases [43, 44]. According to the International Energy Agency, energy efficiency is the world's most available, secure and affordable energy resource that every government has the power to exploit for widespread benefit [44]. To the extent that energy efficiency actions such as retrofitting homes, adopting more stringent building codes, increasing the fuel economy of vehicles, and adopting more productive technologies in industries reduce energy demand and consumption, they contribute towards the goal of energy security [45]. It is estimated that between 2000 and 2017, improvements in energy efficiency saved an additional 37 exajoules of final energy use in the IEA countries and other

major economies and that globally, over this period, efficiency

iii. *Energy diversification*: Countries can enhance their energy security by diversifying the types of energy carriers that their economies depend on and also the sources of their energy supply. Kruyt et al. [17] regard diversification as critical to energy security because the increasing global demand for energy can over time lead to the depletion of currently known energy resources. Yergin [6] notes that energy diversification enhances energy security by allowing societies to absorb shocks in one energy input

by increasing the use of other energy inputs. Li [47] asserts that

diversifying a country's energy system is vital not only for mitigating the risks that arise from over-reliance on fossil fuels, but also for achieving the goal of sustainable development. Trinidad and Tobago are an example of a country whose primary energy supply is not diverse and consists of 72.3% natural gas and 27.7% crude oil. Canada, in contrast, has a diverse energy mix consisting of natural gas, oil, coal, hydropower, nuclear and others and is therefore much less prone to shortages and price shocks because it is unlikely that these systems would all fail at the same time. Having multiple sources of energy enables countries to continue without disruption if one of the energy sources failed. Over the medium to long-term, Trinidad and Tobago can diversify their energy mix by developing and harnessing their

iv. *Technological innovation*: Technological innovation, like energy efficiency, is a valuable instrument that countries can use to mitigate climate change and enhance their overall energy security. Kim [48] cites Germany and

barriers through appropriate policy actions [43].

vast potential for wind and solar power.

**33**

improvements prevented about 12% more energy use [46]. The fact that energy efficiency potential is vast and has not been fully utilized in many countries implies that it is a strategy that can be cost-effectively used to improve energy security. This will entail identifying the barriers to the implementation of energy efficiency programs and addressing these

supply and enhance energy security.

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

**Figure 18.**

*Share of combined wind and solar in US electric power sector [30].*

Further growth in the use of wind and solar power can be expected in the future as the market costs of these technologies continue to fall and as progress is made to overcome the challenges of intermittency.
