Energy industry
The energy industry is the totality of all of the industries involved in the production and sale of energy, including fuel extraction, manufacturing, refining and distribution. Modern society consumes large amounts of fuel, and the energy industry is a crucial part of the infrastructure and maintenance of society in almost all countries.
In particular, the energy industry comprises:
- the natural gas extraction, and coal gasmanufacture, as well as distribution and sales);
- the electrical power industry, including electricity generation, electric power distributionand sales;
- the nuclear power industry;
- the hydroelectric power, wind power, and solar power generation, and the manufacture, distribution and sale of alternative fuels; and,
- traditional energy industry based on the collection and distribution of firewood, the use of which, for cooking and heating, is particularly common in poorer countries.
The increased dependence during the 20th century on carbon-emitting sources of energy such as
History
The use of
In some industries, the word energy is used as a synonym of
Ever since humanity discovered various energy resources available in nature, it has been inventing devices, known as machines, that make life more comfortable by using energy resources. Thus, although the primitive man knew the utility of fire to cook food, the invention of devices like gas burners and
Economics
Widespread demand for energy may encourage competing energy
The energy sector accounts for 4.6% of outstanding leveraged loans, compared with 3.1% a decade ago, while energy bonds make up 15.7% of the $1.3 trillion junk bond market, up from 4.3% over the same period.[3]
Management
Since the cost of energy has become a significant factor in the performance of economy of societies, management of energy resources has become very crucial. Energy management involves utilizing the available energy resources more effectively; that is, with minimum incremental costs. Many times it is possible to save expenditure on energy without incorporating fresh technology by simple management techniques.[4] Most often energy management is the practice of using energy more efficiently by eliminating energy wastage or to balance justifiable energy demand with appropriate energy supply. The process couples energy awareness with energy conservation.
Classifications
Government
The United Nations developed the International Standard Industrial Classification, which is a list of economic and social classifications.[5] There is no distinct classification for an energy industry, because the classification system is based on activities, products, and expenditures according to purpose.[6]
Countries in North America use the North American Industry Classification System (NAICS). The NAICS sectors #21 and #22 (mining and utilities) might roughly define the energy industry in North America. This classification is used by the U.S. Securities and Exchange Commission.
Financial market
The Global Industry Classification Standard used by Morgan Stanley define the energy industry as comprising companies primarily working with oil, gas, coal and consumable fuels, excluding companies working with certain industrial gases.[7] Add also to expand this section: Dow Jones Industrial Average[8]
Environmental impact
Government encouragement in the form of subsidies and tax incentives for energy-conservation efforts has increasingly fostered the view of conservation as a major function of the energy industry: saving an amount of energy provides economic benefits almost identical to generating that same amount of energy. This is compounded by the fact that the economics of delivering energy tend to be priced for capacity as opposed to average usage. One of the purposes of a smart grid infrastructure is to smooth out demand so that capacity and demand curves align more closely. Some parts of the energy industry generate considerable
Consumption of energy resources, (e.g. turning on a light) requires resources and has an effect on the
The large-scale use of
In addition, it is argued that there is also the potential to develop a more efficient energy sector. This can be done by:[11]
- Fuel switching in the power sector from coal to natural gas;
- Power plant optimisation and other measures to improve the efficiency of existing CCGTpower plants;
- Combined heat and power(CHP), from micro-scale residential to large-scale industrial;
- Waste heat recovery
Politics
Since now energy plays an essential role in industrial societies, the ownership and control of energy resources plays an increasing role in politics. At the national level, governments seek to influence the sharing (distribution) of energy resources among various sections of the society through pricing mechanisms; or even who owns resources within their borders. They may also seek to influence the use of energy by individuals and business in an attempt to tackle environmental issues.
The most recent international political controversy regarding energy resources is in the context of the Iraq Wars. Some political analysts maintain that the hidden reason for both 1991 and 2003 wars can be traced to strategic control of international energy resources.[13] Others counter this analysis with the numbers related to its economics. According to the latter group of analysts, U.S. has spent about $336 billion in Iraq[14] as compared with a background current value of $25 billion per year budget for the entire U.S. oil import dependence[15]
Policy
Energy policy is the manner in which a given entity (often governmental) has decided to address issues of
Security
Energy security is the intersection of
Development
Producing energy to sustain human needs is an essential social activity, and a great deal of effort goes into the activity. While most of such effort is limited towards increasing the production of
Other forms of conventional energy resources are also being used in new ways.
Energy is the subject of significant research activities globally. For example, the UK Energy Research Centre is the focal point for UK energy research while the European Union has many technology programmes as well as a platform for engaging social science and humanities within energy research.[18]
Transportation
All societies require materials and food to be transported over distances, generally against some force of friction. Since application of force over distance requires the presence of a source of usable energy, such sources are of great worth in society.
While energy resources are an essential ingredient for all modes of
Crisis
Economic and political instability can lead to an energy crisis. Notable oil crises are the 1973 oil crisis and the 1979 oil crisis. The advent of peak oil, the point in time when the maximum rate of global petroleum extraction is reached, will likely precipitate another energy crisis.
Mergers and acquisitions
Between 1985 and 2018, there have been around 69,932 deals in the energy sector. This cumulates to an overall value of 9,578 bil USD. The most active year was 2010 with about 3.761 deals. In terms of value 2007 was the strongest year (684 bil. USD), which was followed by a steep decline until 2009 (-55,8%).[19]
Here is a list of the top 10 deals in history in the energy sector:
Date Announced | Acquiror Name | Acquiror Mid Industry | Acquiror Nation | Target Name | Target Mid Industry | Target Nation | Value of Transaction ($mil) |
---|---|---|---|---|---|---|---|
12/01/1998 | Exxon Corp | Oil & Gas | United States | Mobil Corp | Oil & Gas | United States | 78,945.79 |
10/28/2004 | Royal Dutch Petroleum Co | Oil & Gas | Netherlands | Shell Transport & Trading Co | Oil & Gas | United Kingdom | 74,558.58 |
04/08/2015 | Royal Dutch Shell PLC | Petrochemicals | Netherlands | BG Group PLC | Oil & Gas | United Kingdom | 69,445.02 |
02/25/2006 | Gaz de France SA | Oil & Gas | France | Suez SA | Power | France | 60,856.45 |
07/05/1999 | Total Fina SA | Oil & Gas | France | Elf Aquitaine | Oil & Gas | France | 50,070.05 |
08/11/1998 | British Petroleum Co PLC | Oil & Gas | United Kingdom | Amoco Corp | Oil & Gas | United States | 48,174.09 |
09/01/2010 | Petrobras | Oil & Gas | Brazil | Brazil-Oil & Gas Blocks | Oil & Gas | Brazil | 42,877.03 |
10/16/2000 | Chevron Corp | Petrochemicals | United States | Texaco Inc | Petrochemicals | United States | 42,872.30 |
06/20/2000 | Vivendi SA | Water and Waste Management | France | Seagram Co Ltd | Motion Pictures / Audio Visual | Canada | 40,428.19 |
12/14/2009 | Exxon Mobil Corp | Petrochemicals | United States | XTO Energy Inc | Oil & Gas | United States | 40,298.14 |
See also
- Alternative energy
- Climate lawsuit
- Energy accounting
- Energy quality
- Energy system – the interpretation of the energy sector in system terms
- Energy transformation
- Economics of climate change
- Hydrogen economy
- List of books about the energy industry
- List of countries by energy consumption per capita
- List of energy resources
- List of largest energy companies
- Stranded asset
- World energy consumption
- Worldwide energy supply
References
- ^ "If the energy sector is to tackle climate change, it must also think about water – Analysis". IEA. Archived from the original on 7 November 2021. Retrieved 7 November 2021.
- from the original on 3 July 2017. Retrieved 13 October 2010.
The Energy Marketing and Customer Service (EMACS) conference/exhibition focuses exclusively on the selling of energy in competitive retail markets.
- ^ Alloway, Tracy (26 November 2014). "Oil price fall starts to weigh on banks". ft.com. Archived from the original on 29 November 2014. Retrieved 27 November 2014.
- ^ Energy Management :: MEPoL Archived 25 March 2008 at the Wayback Machine
- ^ United Nations economic and social classifications Archived 24 April 2007 at the Wayback Machine Accessed 6 April 2007.
- ^ United Nations Available Classifications Archived 10 April 2007 at the Wayback Machine Accessed 6 April 2007.
- ^ MSCI-Barra GICS Tables Archived 10 June 2007 at the Wayback Machine Accessed 6 April 2007.
- ^ "Industry Classification Benchmark for Dow Jones Indexes (United States) and FTSE Indexes (United Kingdom)" (PDF). Archived (PDF) from the original on 22 April 2007. Retrieved 7 April 2007.
- ^ Jacobson, Mark Z.; Delucchi, Mark A. (2010). "Providing all Global Energy with Wind, Water, and Solar Power, Part I: Technologies, Energy Resources, Quantities and Areas of Infrastructure, and Materials" (PDF). Energy policy.[permanent dead link]
- ^ Kuli Aye. "Energie vergelijken switchen Energieleverancier top 10". Energie vergelijken (in Dutch). Archived from the original on 29 October 2016. Retrieved 28 October 2016.
- ^ European Movement for Efficient Energy 2011. Energy efficient solutions for the conservation of energy. Retrieved: 11 October 2011 18:52
- ^ a b c European Commission 2011. Impact Assessment Accompanying the document Directive of the European Parliament and of the Council on energy efficiency and amending and subsequently repealing Directives 2004/8/EC and 2006/32/EC Archived 17 January 2012 at the Wayback Machine. p. 106 Retrieved 11 October 2011 19:01
- ^ "The Peakist » Oil and Empire - the backstory to the invasion of Iraq". Archived from the original on 19 April 2012. Retrieved 6 June 2011. Oil and Empire - the backstory to the invasion of Iraq
- ^ The War in Iraq Costs Archived 12 October 2005 at the Wayback Machine, A running total of the U.S. taxpayer cost to date of the Iraq War. The number is based on Congressional appropriations.
- ^ Gibson Consulting Archived 12 September 2008 at the Wayback Machine US OIL DEMAND, 2004.
- ^ "Power plays: Energy and Australia's security". Aspi.org.au. Archived from the original on 11 August 2010. Retrieved 1 June 2010.
- ^ "Virginia Tech Deans' Task Force on Energy Security and Sustainability". Archived from the original on 8 April 2011. Retrieved 6 June 2011.
- ^ "H2020 SHAPE-Energy". Archived from the original on 27 February 2017. Retrieved 27 February 2017.
- ^ "M&A by Industries - Institute for Mergers, Acquisitions and Alliances (IMAA)". Institute for Mergers, Acquisitions and Alliances (IMAA). Archived from the original on 3 November 2020. Retrieved 27 February 2018.
Further reading
- Armstrong, Robert C., Catherine Wolfram, Robert Gross, Nathan S. Lewis, and M.V. Ramana et al. The Frontiers of Energy, Nature Energy, Vol 1, 11 January 2016.
- Bradley, Robert (2004). Energy: The Master Resource. Kendall Hunt. p. 252. ISBN 978-0757511691.
- Fouquet, Roger, and Peter J.G. Pearson. "Seven Centuries of Energy Services: The Price and Use of Light in the United Kingdom (1300-2000)." Energy Journal 27.1 (2006).
- Gales, Ben, et al. "North versus South: Energy transition and energy intensity in Europe over 200 years." European Review of Economic History 11.2 (2007): 219-253.
- Nye, David E. Consuming power: A social history of American energies (MIT Press, 1999)
- Pratt, Joseph A. Exxon: Transforming Energy, 1973-2005 (2013) 600pp
- Smil, Vaclav (1994). Energy in World History. ISBN 978-0-8133-1902-5.
- Stern, David I. "The role of energy in economic growth." Annals of the New York Academy of Sciences 1219.1 (2011): 26-51. online
- Warr, Benjamin, et al. "Energy use and economic development: A comparative analysis of useful work supply in Austria, Japan, the United Kingdom and the US during 100 years of economic growth." Ecological Economics 69.10 (2010): 1904-1917. online
- Yergin, Daniel (2011). ISBN 978-1594202834.