Energy Scarcity in Europe

Description:

The European Union consumes 1,825 million tonnes of oil equivalent (Mtoe) each year to feed its transport and industrial sectors, commerce and private households.<br\> At 37 per cent, oil remains the most intensively used product in the EU's fuel mix, followed by natural gas (24 per cent), solid fuels (18 per cent), nuclear (14 per cent) and renewable sources (7 per cent). Of the approximately 438 Mtoe of gas that are consumed by the EU's 27 countries each year, about 40 per cent comes from member states such as the Netherlands and Britain,The remaining 60 per cent is imported from four big suppliers: Russia, Norway, Algeria and Nigeria. Of these, Russia is by far the biggest, accounting for 42 per cent of the EU's gas imports, equivalent to about a quarter of its overall yearly needs.<br\>

The Commission Green Paper on security of energy supply drew a sobering picture of the EU's energy situation. If no action is taken, it predicted, the EU's energy dependency will climb to 70% in 2030. The particular situation for the main imported fossil fuels was described as follows:<br\> Oil

• 45% of EU oil imports originate from the Middle East;
• by 2030, 90% of EU oil consumption will have to be covered by imports

Gas

• 40% of EU gas imports originate from Russia (30% Algeria, 25% Norway);
• By 2030, over 60% of EU gas imports are expected to come from Russia with overall external dependency expected to reach 80%.

Coal

• By 2030, 66% of EU needs is expected to be covered by imports.

Europe Energy Consumption

Enablers:

• Alternatives need plenty of money and time, and most are fraught with political difficulties.<br\>
• No political consensus

Plans by the European Commission to earmark 5 billion euros in unspent EU money on improving energy interconnections between member states have come up against opposition from some member states.

The EU is also politically split between those who favor closer ties with Russia - such as Germany, France and Italy - and those who treat Moscow with deep suspicion - among them Britain, Sweden, Poland and the Baltics.

• Gazprom insistence that it should be allowed to invest in downstream European energy distribution networks, stoking European fears of even greater reliance on Russian controlled gas.

Inhibitors:

• Building new pipelines from other countries
• Push towards alternate sources of energy
• Increasing use of Nuclear energy for electricity

Paradigms:

Europe's dependency on other countries and especially Russia has direct influences on its political and economic policies. With the forecasted rise in energy consumption this influence will only increase in magnitude.

Experts:

European Commission for Energy

Timing:

Europe's energy needs have been increasing steadily over the last 50 years. However, production within the EU has not increased at the same rate. The increasing dependence on imports have come to light several times (2006,2008, 20009) in the last few years when Russia has switched off the gas supply to Ukraine leading to severe shortages in Europe.

Web Resources:

http://www.earthtimes.org/articles/show/250537,background-europes-gas-dependency.html<br\> http://www.foreignpolicydigest.org/20080811169/Regional-Archive/Europe/Russia-Archive/the-other-energy-crisis-europes-increasing-dependence-on-russian-natural-gas.html<br\> http://www.euractiv.com/en/energy/geopolitics-eu-energy-supply/article-142665#<br\>