1. Section 2 : The Impacts of energy insecurity

2. Key ideas
Energy pathways, between producers and consumers, are complex and show increasing levels of risk

3. What do we mean by an ‘energy pathway’
What do we mean by an ‘energy pathway’? Look at the information on page 24 of Oxford and 16 on Pearson sheet.
Fossil fuel supply regions are poorly matched with areas of largest demand
This is especially true for oil and gas
Energy must flow along international pathways from producer to consumer
These are either pipelines (oil and gas), bulk carriers (coal, uranium), LNG tankers (gas) or oil tankers. Electricity is also exported / imported.

4. Routes may be complicated by
Natural or environmental issues
Human or political issues

5. BP Statistical Review of World Energy 2013
Major oil trade movements 2012 Trade flows worldwide (million tonnes)
BP Statistical Review of World Energy 2013
© BP 2013

6. What are the human and physical reasons why pathways may be disrupted
What are the human and physical reasons why pathways may be disrupted? Discuss in pairs...
Pathway disruption
Price and payment disputes
Piracy e.g. off the Somali coast
Subsidence under pipelines eg alaska for short periods
Terrorism or conflict closing choke points
Political discord between supplier and consumer
Diversion of supply, perhaps for a higher price
Technical interruption to production
Producer’s supply simply runs out
Natural disasters e.g. hurricane Katrina

7. Risks of disruption
Gas pipeline disruption has already occurred, as disputes between Russia and Ukraine disrupted European gas supplies in 2006 and 2009
Russia holds 25% of world gas reserves, the Middle East 40% (and 56% of oil)
Read p Pearson sheet about Russia
(and at home read and p Oxford and write notes)

8. Choke points
Disruption to narrow ocean choke points (see map) could seriously affect the flow of oil
Countries close to some choke points are unstable (Iran, Somalia, Yemen)

9. Eg Somali pirates (2011 onwards)

10. Risks of disruption
There are real risks if oil and gas supplies are disrupted.
Any potential disruption is headline news
So dependent are we on cheap, uninterrupted energy supplies that disruption could lead to:
Soaring energy costs and rising energy poverty
Pressure on politicians to act; possibly rationing energy
Civil disruption
Rising costs for industry, job losses and recession
Unsound decisions (economically and environmentally) to rapidly develop alternative sources
Diplomatic conflict
UK energy disruption
Oct 1973
Oil crisis; petrol rationing
Sept 2000
UK wide fuel protests over price and tax
Aug 2005
Further UK protests; Hurricane Katrina pushes oil prices higher
Aug 2008
Oil at $147 a barrel
Jan 2010
National Grid ‘gas balancing alerts’ are headline news ; gas supply from Norway drops on technical problems