Energy Conservation in Rapid-Growth Economies of Asia

Energy demand, including demand for petroleum, is expected to increase at a faster rate in the rapidly-developing nations of East and Southeast Asia than elsewhere in the world through the turn of the century. In the aggregate, the countries of this region are heavily dependent on imported oil, coal and natural gas. Rapid industrialization, electrification and increased consumer demand for energy-consuming durable goods and housing underlie the expected strong growth in energy consumption. Substantial scope for greater economy in energy-use exists in the industrial and transport sectors but effects in these areas will require effective management and institutional support in addition to getting prices right. In the context of balance of payments and external debt considerations, and the continued growth of energy consumption in East and Southeast Asia, improving energy conservation will be of great importance in lessening the likelihood that future economic development will be constrained by energy problems.     

ASPECTS OF PETROLEUM TRANSPORT IN DEVELOPING COUNTRIES

Dramatic changes in the institutional structure of the international oil industry in recent years have created new responsibilities and opportunities for developing countries in petroleum transport. The article discusses the prospects for changes in the ownership/control pattern of seaborne oil movements and the need for both oil producing and oil importing developing countries to pursue national plans to acquire shipping tonnage and expertise, without being deterred by the present depressed conditions of the world shipping industry. Drawing from the experience in India, it deals with some features and problems of petroleum transport by sea, pipeline, rail and road. It stresses the importance of co-operation among developing countries through common operation of deep-water terminals and large size tankers to optimise transport costs.     

WOODFUEL - A TIME FOR RE-ASSESSMENT

Official statistics and surveys show that woodfuel is the dominant end-use of forest products especially in developing countries. This paper examines the end-use pattern and per capita consumption figures for selected developing countries. In terms of total energy requirements woodfuel, a renewable resource, is the third most important fuel after oil and coal, but may be the primary fuel in terms of number of actual consumers. The future consumption pattern is estimated for the developing and developed countries and it is anticipated that total woodfuel consumption may increase by about 2 per cent per year at least until the year 2000. The supply position shows that while present consumption of all forest products is more or less in balance with the increment of the growing stock, in certain areas the forest capital is being depleted to meet demand. Total demand is likely to double by the turn of the century. Therefore, plantations, especially of fuelwood, will have to be established if the growing stock is not to be depleted and if an energy crisis in developing countries is to be averted.     

The Asia-Pacific petroleum market

The late 1980s saw an astonishing turnaround in the Asian oil market. After years of stagnation, three main factors - economic dynamism, lower oil prices and reduced government regulation of the market - resulted in a consumption surge that surprised even those analysts who had predicted such a recovery. The chronically capacity-surplus refining industry saw a leap in profitability, and new construction began. Rapid demand growth spread from the middle distillates to such formerly depressed products as gasoline and fuel oil, and naphtha markets began to expand again as the petrochemical industry resumed rapid growth. At the same time that demand has been rising and demand patterns have been shifting, other changes have begun. A new environmental awareness has taken root in Asia, and new environmental standards are being set almost daily, not only in the richer countries of East Asia, but also in many of the region's developing nations. Unfortunately, traditional sources of low-sulphur oil for power generation may be limited in the coming decade. Despite many new discoveries within the region, Asian crude availability is shrinking, both in terms of availability on the international market and in terms of percentage contribution to regional oil demand. After years of decreasing reliance, the region will face rapid increases in imports from the Persian Gulf in the 1990s.     

From the erosion of crude oil prices to reorganization of the oil industry

Comparison of data on world energy consumption for 1986, 1987 and 1988 indicates that the consumption of all forms of energy increased during the period, but the demand for oil increased at a lesser rate than that of other energy sources. Although the pattern varies between countries, the overall picture is one of increased use of natural gas, coal, nuclear and hydropower as an energy source. Part of the reason for the low growth in oil demand is the oil conservation measures put in place when oil was much more expensive, but may partly be due to the scepticism of many people about the future movement of oil prices. The likely continuation of a low growth market for oil has led some oil exporting countries to move downstream in an effort to secure a dependable market for their oil and oil products.     

JAMAICA - A CASE STUDY OF ENERGY PLANNING

The analysis shows the impact of the 'New International Energy Order' on Jamaica, a developing country almost totally dependent on imported oil for satisfying national energy demand. The energy supply/demand situation between 1961 and 1976 and the structure of energy consumption by major sectors of the economy are discussed. The high income elasticity of commercial energy demand and the increase in the energy intensity of the economy is directly related to expansion of the alumina industry. The structural problems of decoupling GDP and energy growth are indicated. In particular, the impact of the 'New Energy Order' on the development prospects of major bauxite/alumina producing countries which are deficient in indigenous primary energy resources is assessed. Finally, the indigenous resource base is outlined and the major elements of the five-year (1978–1982) national energy plan summarized.     

Wider roads, more cars

The transport policy currently followed in many European cities seems to be a combination of investments in public transport in order to increase, or at least maintain, its market share, and road building in order to keep up with expected traffic growth. Apparently, there is a prevalent belief among policy makers that increased road capacity in urban areas does not in itself cause any growth in car traffic worth mentioning. Such a belief neglects the simple economic theory of supply and demand, as well as more specific theories about the dynamics of traffic under congested conditions. An empirical study of commuting patterns in two transport corridors in Oslo, Norway, shows that a considerable proportion of commuters are sensitive to changes in the speed of the respective modes of transportation. The mode chosen depends to a large extent on the ratio of door-to-door travel times by car and transit. Freer flowing traffic in the road network will induce a higher proportion of commuters to travel by car. Conversely, faster public transport will reduce the proportion of car commuters, but the effects of such improvements will be offset if road capacity is simultaneously increased. In addition to the relative speeds of car and transit, the parking conditions at the workplace are of great importance to the choice of transport mode.     

Modelling future copper ore grade decline based on a detailed assessment of copper resources and mining

The concept of “peak oil” has been explored and debated extensively within the literature. However there has been comparatively little research examining the concept of “peak minerals”, particularly in-depth analyses for individual metals. This paper presents scenarios for mined copper production based upon a detailed assessment of global copper resources and historic mine production. Scenarios for production from major copper deposit types and from individual countries or regions were developed using the Geologic Resources Supply-Demand Model (GeRS-DeMo). These scenarios were extended using cumulative grade-tonnage data, derived from our resource database, to produce estimates of potential rates of copper ore grade decline.The scenarios indicate that there are sufficient identified copper resources to grow mined copper production for at least the next twenty years. The future rate of ore grade decline may be less than has historically been the case, as mined grades are approaching the average resource grade and there is still significant copper endowment in high grade ore bodies. Despite increasing demand for copper as the developing world experiences economic growth, the economic and environmental impacts associated with increased production rates and declining ore grades (particularly those relating to energy consumption, water consumption and greenhouse gas emissions) will present barriers to the continued expansion of the industry. For these reasons peak mined copper production may well be realised during this century.     

The outlook for oil

Between now and 2000, the demand for oil is expected to be moderate and the supply abundant. Economic growth is almost twice as slow as in 1973 and requires 25–30% less energy per unit of GNP. The demand for oil is therefore growing at a rate of two to three times slower. Meeting the demand for oil between now and 2000 is within the capability of the oil-producing countries, in many cases with modest additional investment. Gas and coal will be very cost competitive in relation to oil and will serve as a break on future explosive price increases.     

Cars and fuels for tomorrow: a comparative assessment

Light duty vehicles, i.e. passenger cars and light trucks, account for approximately half of global transportation energy demand and, thus, a major share of carbon dioxide and other emissions from the transport sector. Energy consumption in the transport sector is expected to grow in the future, especially in developing countries. Cars with alternative powertrains to internal combustion engines (notably battery, hybrid and fuel-cell powertrains), in combination with potentially low carbon electricity or alternative fuels (notably hydrogen and methanol), can reduce energy demand by at least 50%, and carbon dioxide and regulated emissions much further. This article presents a comparative technical and economic assessment of promising future fuel/vehicle combinations. There are several promising technologies but no obvious winners. However, the electric drivetrain is a common denominator in the alternative powertrains and continued cost reductions are important for widespread deployment in future vehicles. Development paths from current fossil fuel based systems to future carbon-neutral supply systems appear to be flexible and a gradual phasing-in of new powertrains and carbon-neutral fluid fuels or electricity is technically possible. Technology development drivers and vehicle manufacturers are found mainly in industrialised countries, but developing countries represent a growing market and may have an increasingly important role in shaping the future.     

Energy consumption trends in high growth Asian economies before and after 1986

In 1986, world oil prices declined sharply. Lower oil prices have been favourable to economic growth and price stability in Asia. However, oil consumption has also been growing rapidly in developing Asian countries including those dependent on imported oil. The increasing dependence on oil as a source of energy since 1986 is a striking reversal of the previous trend. In their pursuit of rapid industrialization, Asian countries have neglected energy conservation and diversification strategies. Unless energy policy is redirected, countries like Korea, Thailand and the Philippines could be seriously hurt by a sharp rise in oil prices. An increase in oil prices is almost inevitable in the next few years.     

International oil market – new directions

This article focuses on changes in the international petroleum industry during the past 20 years and examines some major trends, especially since the oil price collapse of 1986. The resumption of rapid increases in oil demand since 1986 in the developed market economies and the developing world has already led to a pronounced production shift to OPEC member countries where output increased by 6.6 million barrels per day or, 37% since 1985. Cutbacks in petroleum investments in non-OPEC countries are likely to result in even more dependence on the vast proved oil reserves of OPEC. However, the gap between peak output and sustainable production capacities in OPEC has narrowed and there is an urgent need for sizeable investments to expand capacities. Such investment programmes are already being implemented by transnational oil corporations in countries such as Indonesia and Nigeria where the companies had retained equity participation. In other countries such as Iraq and Venezuela where oil operations had been nationalized, transnational oil corporations are being invited to participate in new arrangements for oil production. New arrangements are also being considered in Eastern Europe and the USSR. New understandings, dialogue and cooperation between oil-consuming and producing countries will be necessary for the security of investments, supplies and markets in this process. The unanswered question is whether such cooperation can be achieved in time in order to avoid yet another energy crisis.     

An Assessment of Future Energy Demand in Developing Countries

The statistical data show that the rapid growth in oil and energy demand in less-developed countries (LDCs) can be attributed to the rapid growth in gross domestic products (GDP) and the relatively high energy intensity in LDCs. The statistical analysis confirms that the GDP elasticities of aggregate energy and oil demand are high and the energy price elasticities are relatively low for the 15 LDCs studied. The projection shows that the future oil and aggregate energy demands are likely to increase at fairly rapid rates in LDCs. Furthermore, there are reasons to believe that these high growth rates may be sustained.     

Coal Receiving Terminals in Relation to Electricity Generation in Developing Countries

With the rapid increase in the price of oil in the 1970s, many developing countries are beginning to look to steam coal as an energy source. Much of this coal will have to be transported from coal-producing countries to coal-consuming countries by sea and coal-receiving terminals will have to be built especially in those countries which have not been coal importers in the past. The international market in steam coal is examined and predictions are made as to the amount of coal that developing countries are likely to import from electric power generation. The operation of a coal-receiving terminal is discussed and estimates are provided as to the size and cost of coal terminals required to meet the coal import needs of developing countries.     

The supply and demand outlook for energy in the Asia—Pacific region

Years of strong economic growth in the Asia—Pacific region have resulted in unprecedented increases in energy demand in the region, particularly for oil and gas. The supply of oil and gas to the region will become more problematic as the decade progresses. Already 50% dependent on imported oil, this figure will rise to nearly 65% by 2000. Because high rates of domestic oil demand growth among traditional petroleum exporters - Indonesia. China and Malaysia - will absorb exportable surpluses, the region will find itself dependent on the Middle East for at least 90% of its imported oil needs by 2000. Currently linked to oil, LNG prices cannot justify the investments needed to bring new greenfield projects on line. With demand expected to exceed 67 million tonnes (Mt) in 2000 and 100 Mt in 2010. over 50 Mt of new capacity will be needed; satisfying this demand will necessitate a new pricing structure for LNG, raising the price substantially above the relative price of crude oil.     

Why Singapore's land transportation energy consumption is relatively low

Since the early 1970s, Singapore has enacted a number of measures to tackle traffic congestion, including measures to restrain vehicle ownership. Although Singapore's per capita GDP is comparable to that of OECD countries, the present car-ownership level in Singapore (10 cars per 100 people) is only a fraction of levels in the OECD countries. Traffic flow in this city-State is relatively smooth, even during peak hours. Although the measures taken were aimed primarily at tackling traffic congestion, they have had other positive impacts, such as reducing energy consumption, air pollution and CO₂ emissions. This article presents an overview of the transportation measures and initiatives in Singapore, and analyses two of the transport demand management measures in detail: the vehicle restraint measure, in particular the unique vehicle quota system introduced in 1990; and the two road pricing systems, i.e. the area licensing scheme (ALS) that operated from 1974 to 1998, and the electronic road pricing system (ERP) that went into operation in 1998. Energy and environmental impacts are then discussed, and finally factors contributing to the success of these schemes. Although certain conditions are unique to Singapore, the experience shows that substantial energy and environmental benefits can be achieved through managing urban transportation system in an integrated and innovative way.     

Energy Consumption in the Turkish Industrial Sector

Turkey's primary energy resources seem limited as indigenous energy production meets nearly 31 % of the total primary energy demand. But the growth of Turkey's industry gives rise to a substantial increase in energy demand. Final energy consumption grew from 52.6 Mtoe (million tons of oil equivalent) in the year 1990 to 78.4 Mtoe in the year 2002. Industrial demand accounts for about 41.6 % of the final energy demand in Turkey. Basic metal industries, non-metallic material products and chemical and petroleum products have the highest energy consumption in industrial sector. In this work, industrial energy consumption and energy consumption of different indsutrial subsectors in Turkey are investigated.     

Local 'Barriers' to Environmentally Sustainable Transport Planning

Rapid changes are occurring in the rhetoric and practice of transport planning in the UK. Driven by ever increasing road congestion and growing awareness of the impact of road transport on the environment, a consensus is said to be emerging over the implementation of a new approach to UK transport planning centred on managing the demand for road travel rather than catering for it. This paper explores the depth and breadth of the penetration of this new consensus in relation to policy making in central government and in three local case-study areas. The paper charts the factors that have shifted transport policy direction and are contributing to and inhibiting the adoption of a new demand management approach. It concludes by stating that whilst definitive shifts in transport-planning rhetoric and practice have occurred in recent times, shifts toward demand management have been slow due in particular to local cultural and political difficulties. These persist in many localities and in similar policy areas and an awareness of these is useful in highlighting difficulties in the adoption of environmental sustainability agendas in other policy fields.     

Local 'Barriers' to Environmentally Sustainable Transport Planning

Rapid changes are occurring in the rhetoric and practice of transport planning in the UK. Driven by ever increasing road congestion and growing awareness of the impact of road transport on the environment, a consensus is said to be emerging over the implementation of a new approach to UK transport planning centred on managing the demand for road travel rather than catering for it. This paper explores the depth and breadth of the penetration of this new consensus in relation to policy making in central government and in three local case-study areas. The paper charts the factors that have shifted transport policy direction and are contributing to and inhibiting the adoption of a new demand management approach. It concludes by stating that whilst definitive shifts in transport-planning rhetoric and practice have occurred in recent times, shifts toward demand management have been slow due in particular to local cultural and political difficulties. These persist in many localities and in similar policy areas and an awareness of these is useful in highlighting difficulties in the adoption of environmental sustainability agendas in other policy fields.     

Coal and peat in the sub-Saharan region of Africa

Increased energy demand as a result of growth in population, trends to sedentation and urbanization, and the desire for improvement in living standards, coupled with apparent climatic changes, are reducing fuelwood availability and contributing to deforestation and desertification in the sub-Saharan countries. In 14 of those countries, the transport, industrial, and electric power generation sectors are all dependent on imported petroleum products for their energy needs with resultant balance of trade and debt-servicing problems. Coal and peat are essentially unused and in some cases unknown in sub-Saharan Africa. However, they might comprise valuable alternative energy sources in some or all of the developing nations of the region. The eleven countries considered in this appraisal reportedly contain coal and peat. On the basis of regional geology, another five countries might also contain coal-bearing rocks. If the resource potential is adequate, coal and peat might be utilized in a variety of ways including substituting for fuelwood, generating electricity, supplying process heat for local industry and increasing agricultural productivity.