2016/56 102679 - World Bank

The boTTom line

The effect of oil and gas development on local and regional water resources can profoundly change a region’s economic possibilities, its water environment, and the vitality of its ecosystem. It is necessary to tackle the water-energy challenge today through technological innovations and institutional changes, such as integrated planning and valuing water as a resource. More information on the Thirsty Energy initiative can be found at www.worldbank.org/thirstyenergy.

Antonia A. Sohns is a water and energy analyst in the World Bank’s Global Water Practice.

Diego J. Rodriguez is a senior economist in the Global Water Practice.

Anna Delgado is a technical specialist in water and energy in the Global Water Practice.

Thirsty energy (ii): The importance of Water for oil and Gas extraction Why is this issue important?

Water and energy are inextricably linked, but energy development often proceeds without sufficient attention to water’s sustainable use

The water requirements needed for oil and gas extraction are often

invisible to the public eye. Although oil and gas development is not

a significant water consumer when compared to other industries,

agriculture, or municipal needs, its water demands can have acute

impacts on local water resources and increase conflicts between

water users in areas of high water stress or in times of drought. Last

year, the United Nations stated that energy development, such as

shale gas and oil production, might pose significant risks to water

resources and exacerbate tensions between sectors (Patel 2014).

To meet future energy demands, fossil fuels will continue to dom-

inate the fuel mix, with oil, gas, and coal each converging on market

shares of around 26–27 percent by 2035, while nuclear, hydropower,

and renewables will have a share of around 5–7 percent (BP 2014;

Williams 2013). Thirty-eight percent of the world’s shale resources are

in areas that either are arid or are experiencing extremely high levels

of water stress (Reig, Luo, and Proctor 2014). Energy development

in eight of the top twenty countries that have recoverable shale gas

and tight oil resources, including China, South Africa, Mexico, Egypt,

and India, might be curtailed because of that stress. As a result,

water concerns will be a major constraint on future oil and gas

development (Reig, Luo, and Proctor 2014).

It is possible to assess the effect of fossil fuel development on

the water life cycle by the quantity and source of water required

for operations; water management practices; recycling, treatment,

or disposal of wastewater; and the impacts on the watershed and

surrounding environment.

how does water figure in fossil fuel development?

Water is ubiquitous in oil and gas production

Water is used in all stages of oil and gas development, extraction,

and processing (WWAP 2014). Operations may consume water or

remove large quantities of water; the water is then used for drilling,

washing, and processing. The energy sector’s water use varies

depending on the fuel type, the method of extraction, the geology,

the degree of processing required, the geography, and the climate

of the site under development. Conversely, constraints on water

availability influence the choice of technology in the industry, site

selection, and other aspects of resource development.

Figure 1 depicts the range of water required for various energy

resources. Biofuels’ water needs and environmental impact depend

on the crop and whether or not it is rain-fed or irrigated.

When primary production begins in conventional oil production,

the natural reservoir pressure is typically sufficient to allow fluids

to flow out of the reservoir formation, into the wellbore, and up to

the surface. However, as reservoir pressure declines, water is often

needed to maintain pressure and to keep up the production rate. In

some instances, this primary production phase is followed by sec-

ondary recovery processes, such as waterflooding or the injection of

treated water, that drive residual oil to the production wells. Offshore

conventional oil development makes use of treated seawater for

waterflooding, greatly diminishing the use of freshwater (Williams

2013). To extend a field’s economic life, a tertiary process to enhance

A k n o w l e d g e n o t e s e r i e s f o r t h e e n e r g y p r A c t i c e

2016/56

A k n o w l e d g e n o t e s e r i e s f o r t h e e n e r g y & e x t r A c t i v e s g l o b A l p r A c t i c e

102679

2 T h I r s T y E n E r g y ( I I ) : T h E I M p o r T a n c E o f W a T E r f o r o I l a n d g a s E x T r a c T I o n

“The recent development

of unconventional

fossil fuels has brought

international attention

to the tension between

energy and water. As new

projects begin, industry

officials and politicians

have a historic opportunity

to correlate the water

needs of energy extraction

with sustainable water

management practices.”

oil recovery (EOR) is used by injecting gas or steam to pressurize the reservoir and lower the viscosity of the remaining oil.

In conventional gas development, gas is under pressure within the reservoir naturally, thus no water injection is required when a well is developed; instead, the gas spontaneously expands, flows into the wellbore, and then heads up to the surface. In conventional res-ervoirs, the gas moves through the porous reservoir rock toward the wellbore. As a result, conventional natural gas development primarily consumes water in drilling processes, not in gas stimulation.

Water, therefore, is essential in drilling, pressure maintenance, and all stages of production. Figure 2 shows the interaction of water and energy in the secondary and tertiary processes of conventional oil development.

In comparison, unconventional oil and gas production—such as shale gas or so-called tight oil—harnesses hydrocarbons that are in less-permeable rock formations, of a lesser grade, or more difficult to capture. To develop these resources, alternative means of stimulation and production are required, and processes vary depending on the deposit type—but all involve water.

Oil, gas, and water reach the surface and are separated for export and processing at the refinery; for wastewater disposal; or for recycling and reuse to stimulate future oil recovery.

Broadly, extraction technologies for unconven-tional oil resources are determined by whether the resource is being accessed by well or by surface mining. In well extraction, techniques are divided into two groups that are based on whether the target energy resource is stimulated by increasing or reducing its viscosity: Cold production is used primarily for shale oil, tight oil, or heavy oil. The viscosity of these resources is increased by using horizontal wells that have lateral branches and by then injecting water and chemicals for pressure maintenance. Hydraulic fracturing can also be used to stimulate low-permeability rock formations. Thermal production is used to exploit heavy oil and oil sands by reducing viscosity with heat, allowing the target energy resource to flow and be recov-ered. For surface mining of oil sands and oil shales, purified water is used to extract bitumen from mined sand. Water quality issues raised by surface

retorting of oil shales are similar to those raised by mined oil sands.Figure 3 depicts how shale is fractured hydraulically by using

water-based fluids, which are injected at a high pressure into a horizontal well. The gas released from the rock flows back up the well and into the separator, moving with the injected and natural fluid from the geologic formation. The water is then treated and can be exported, disposed of, or recycled for future operations.

The recent development of unconventional fossil fuels has brought international attention to the tension between energy and water. The production of unconventional fuels requires more water than conventional gas fuels, but less than conventional oils (Kuwayama 2015). On average, hydraulic fracturing in the United States requires an estimated 2–5 million gallons of water per well (Allen 2013). Uncertainty regarding water use within an oil field that is under development can be as great as or greater than the variability of water use between fields in different regions. As new projects expand across countries such as the United States, United Kingdom, Poland, and Argentina, industry officials and politicians have a historic opportunity to correlate the water needs of energy extraction with sustainable water management practices.

Figure 1. Water demand by fuel type

Source: www.worldbank.org/thirstyenergy.

Water withdrawal (in liters)

Water consumption (in liters)

Conventional gas

Coal

Shale gas

Refined oil (conventional)

Refined oil (oil sands)

Gas-to-liquids

Coal-to-liquids

Refined oil (enhanced oil recovery)

<1 101 102 103 104 105

liters per metric ton of oil


“Sustainable water

management practices

are needed to prevent oil

and gas operations from

increasing water use to the

point that it threatens use

by other sectors and from

damaging the surrounding

environment’s water

quality.”

Why is water use by the oil and gas industry a problem?

Concerns are growing about the sector’s demand for water and about preserving water quality

Sustainable water management practices are needed to prevent oil and gas operations from increasing water use to the point that it threatens use by other sectors and from damaging the surrounding environment’s water quality through spills, leaks, inefficient treatment of wastewater, and other contami-nation events.

When assessing the effect of oil and gas production on the quantity of water resources, it is important to consider water use in the local context. For example, in the Eagle Ford shale region in Texas, water

consumption by the shale gas industry represents about 5 percent of total water consumption in the counties under development (relative to less than 1 percent statewide) but is projected to increase to 89 percent of total use during peak production (Kuwayama 2015). If the state of Coahuila, Mexico, eventually uses the same amount of water for fracking as Texas now does, it is anticipated that oil and gas operations will require nearly one-third of the 1.96 billion cubic meters of the water used annually in Coahuila by all sectors (Schneider 2015). Oil and gas operations can, therefore, greatly affect water availability in time and place, and the operation’s consumption of those resources may affect other sectors’ water usage. Where water is scarce, oil and gas development has a greater impact on other water use than it does where water is plentiful.

The amount of freshwater required in energy extraction is dictated by the ability to substitute water, the quality of the water, the reservoir characteristics, and the recycling infrastructure. In regions where freshwater is scarce or in high demand for other uses, energy extraction operations may use alternate sources of water, such as saline water or recycled wastewater. During production, the water that returns to the surface carrying oil or gas is known as flowback,

Figure 2. Water use in the secondary and tertiary processes of conventional oil development

Source: Williams and Simmons 2013.

Fresh water

Salineor

brackishwater

Productionwell

Injectionwell

Reused produced waterOther disposal

of produced water

Gasfor

export

Oilfor

export

Chemical additives and/or hydrocarbon gas or CO2

or

Oil, gasand water

Mixedwater

SeparatorWater

treatmentLow-

salinitywater

Pump

Key

Figure 3. Water use in unconventional natural gas production in shale

Surface

Potable aquifer

Fluid for disposal

Saline – non-potable aquifer

Fresh orbrackishwater

Fluid for export to otherfracturing jobs

Gasfor

export

Gas-richshale layer

Treatmentplant

Frac

turi

ng

flu

idad

dit

ives

Pro

pp

ant

Separator

Recycled produced water

Fracturingmixers

and pumps

PumpKey

Source: Williams and Simmons 2013.


or produced water, and it can be recycled. Although recycling water is an important aspect of water management in many regions, wells that return less water to the surface or inadequate recycling facilities can limit the impact of recycling. In the arid Middle East, companies use seawater and brackish water in offshore drilling, consuming no freshwater at all.

Hydraulic fracturing may pose a greater threat to water quality than quantity. In hydraulic fracturing development, surface water bodies may become contaminated by the accidental release of frac-turing fluid, flowback, produced water, or partially treated wastewa-ter. Increased concentrations of chloride, bromide, suspended solids, and radionuclides have been documented downstream of treatment plants that handle wastewater from energy extraction; the release of these chemicals harms aquatic wildlife (Kuwayama 2015). Two U.S. federal agencies found that contaminated groundwater was coming from hydraulic fracturing activities in Pavillion, Wyoming (EPA 2011). In Alberta, Canada, energy developers contaminated groundwater by overstimulating a well (ERC Board 2010).

Even in the context of the Middle East’s low water use for energy development, conventional oil and fossil fuel extraction can damage water quality through tailings seepage, flowback, or produced water from operations. In Ecuador, an oil spill polluted drinking water, cutting off 80,000 people’s water supply (BBC 2013). In Nigeria, oil exploration and the resulting spills profoundly degraded the environ-ment (UNEP 2011).

What is the way forward?

We must find and exploit ways to decrease the impact of oil and gas development on local water resources

As demand for water and energy grows in response to population and economic growth, and as climate change affects the pattern and reliability of energy and water supply and usage, energy companies have sought to develop policies that fully account for their impact on water resources. With increased data collection, accessibility, and improved water management, it should be possible for energy resources to be managed within the local water context, the natural precipitation regime, and available water resources.

Companies and governments are employing a range of approaches for improving water management and regulation in an effort to reduce the effects of oil and gas production on water resources.

Technical improvements in the areas of wastewater reuse and recycling should be maximized in operations because the improve-ments decrease operational costs and increase the sustainability of operations. In Wyoming, operating companies have been piping produced water from wells to a central gathering system (CGS) that then treats and returns the produced water to companies for reuse in future operations. Such recycling systems allow companies to minimize transportation costs by piping liquids from the well to the treatment facility as opposed to using trucks (Sohns 2014). In the Marcellus shale field, high disposal costs were a key driver for the attainment of nearly 90 percent reuse of produced water. One com-pany conducting hydraulic fracturing operations in the Marcellus field estimated annual cost savings of $3.2 million due to greater water reuse (DOE 2013). Wastewater from conventional oil development in California has also been reused to help severely drought-afflicted agricultural counties irrigate crops (Schlanger 2015).

Petroleum engineers are developing technologies that can help stimulate unconventional resources through a form of hydraulic frac-turing that replaces water with liquid nitrogen or uses a super-critical fluid of chilled carbon dioxide. This and other advances will bring previously uneconomical fuel sources to market. The viability of various sources in light of economics and water constraints deter-mines the fuel that is available for power generation, affecting water savings across the entire energy generation life cycle. For example, where there has been a growing supply of natural gas from uncon-ventional gas resources, there also has been increased construction of natural gas combined cycle (NGCC) power plants that consume approximately half as much water as coal-fired power plants.

Governments and energy planners recognize that today’s choices and investments will determine what energy mix meets future demands; how innovations will be welcomed into the market; and, therefore, what impact energy extraction will have on water development. Integrated planning of water and energy infrastruc-tures can increase efficiencies and generate new resources. Piping networks and CGS infrastructure highlight how coordinated energy

“With increased data

collection, accessibility,

and improved water

management, it should

be possible for energy

resources to be managed

within the local water

context, the natural

precipitation regime, and

available water resources.”


development and water reuse can benefit the environment and the economy. A recent study found that the volume of gas flared in Texas in 2012 would be sufficient to cover the thermal energy requirements needed to treat wastewater for use in hydraulically fracturing in 9,400–28,000 wells (Glazer 2014). Innovative synergies, such as using flared natural gas to power wastewater treatment on site, will save money, diminish freshwater demands, decrease the energy needs of water, and protect the environment.

Challenges to water and energy planning remain, including creating new impact-assessment strategies that account for local and regional variability when estimating water-related impacts of energy development and production (Mauter 2014). The rapid expansion of drilling and energy development emphasizes that new research aimed at quantifying water-quality impacts, characterizing their pathways, and assessing options will be of high value to the industry and local governments (Kuwayama 2015). Further collection and dissemination of data will improve water and energy resource management, and quality metrics can be created to help regional policy making and advance integrated development (Spang 2014).

International collaboration and public-private partnerships should disseminate best practices to catalyze innovation and improve regulations. The World Bank’s Thirsty Energy initiative, for example, assists countries in analyzing water and energy resources to improve long-term sustainability of operations and integrate energy and water planning within government agencies and the sectors.

ReferencesAllen, Lucy, Michael J. Cohen, David Abelson, and Bart Miller. 2013.

“Fossil Fuels and Water Quality.” The World’s Water 7 (Chapter 4). http://worldwater.org/wp-content/uploads/sites/22/2013/07/chapter_4_fossil_fuel_and_water_quality.pdf.

BBC (British Broadcasting Corporation). 2013. “Brazil ‘On Alert’ over an Oil Spill from Ecuador.” http://www.bbc.com/news/world-latin-america-22836975.

BP (British Petroleum). 2014. “Energy Outlook 2035.” London, United Kingdom; January 2014. http://www.bp.com/en/global/corporate/about-bp/energy-economics/energy-outlook.html.

DOE (Department of Energy). 2013. “U.S. Energy Sector Vulnerabilities to Climate Change and Extreme Weather.” http://energy.gov/sites/prod/files/2013/07/f2/20130710-Energy-Sector-Vulnerabili-ties-Report.pdf.

EPA (U.S. Environmental Protection Agency) 2011. “Draft Investigation of Groundwater Contamination Near Pavillion, Wyoming.” December. http://www.epa.gov/sites/production/files/docu-ments/EPA_ReportOnPavillion_Dec-8-2011.pdf.

ERC Board (Energy Resources Conservation Board). 2010. “Alberta’s Energy Reserves 2010 and Supply/Demand Outlook 2011-2020.” Calgary, Alberta, Canada.

Glazer, Yael, Jill B. Kjellsson, Kelly T. Sanders, and Michael E. Webber. 2014. “Potential for Using Energy from Flared Gas for On-Site Hydraulic Fracturing Wastewater Treatment in Texas.” Environmental Science & Technology Letters 1(7): 300–04. http://pubs.acs.org/doi/abs/10.1021/ez500129a.

Kuwayama, Yusuke, Sheila Olmstead, and Alan Krupnick. 2015. “Water Quality and Quantity Impacts of Hydraulic Fracturing.” Current Sustainable Renewable Energy Reports 2(1): 17–24. http://link.springer.com/article/10.1007%2Fs40518-014-0023-4.

Mauter, S. Meagan, and many others. 2014. “Regional Variation in Water-Related Impacts of Shale Gas Development and Implications for Emerging International Plays.” Environmental Science and Technology. http://pubs.acs.org/doi/abs/10.1021/es405432k.

Patel, Tara. 2014. “Global Energy Thirst Threatens Water Supplies, UN Says.” Bloomberg Business. http://www.bloomberg.com/news/articles/2014-03-21/global-energy-thirst-threatens-to-worsen-water-woes-un.

Reig, Paul, Tianyi Luo, and Jonathan Proctor. 2014. “Global Shale Gas Development: Water Availability and Business Risks.” World Resources Institute. http://www.wri.org/publication/global-shale-gas-development-water-availability-business-risks.

Schlanger, Zoe. 2015. “In California, Farmers Rely on Oil Wastewater to Weather Drought.” Newsweek. http://www.newsweek.com/california-farmers-rely-oil-wastewater-weather-drought-319648.

Schneider, Keith. 2015. “Water Development Could Deter Energy Developers From Crossing Border Into Northern Mexico.”

“Innovative synergies, such

as using flared natural

gas to power wastewater

treatment on site, will save

money, diminish freshwater

demands, decrease the

energy needs of water, and

protect the environment.”


Circle of Blue. http://www.circleofblue.org/waternews/2015/choke-point-index/water-scarcity-could-deter-energy-develop-ers-from-crossing-border-into-northern-mexico/.

Sohns, Antonia. 2014. “What China and Other Nations Can Learn from U.S. Shale Gas Hydraulic Fracturing Experience—POWER Magazine.” POWER Magazine. http://www.powermag.com/blog/what-china-and-other-nations-can-learn-from-u-s-shale-gas-hydraulic fracturing-experience/.

Spang, E. S., W. R. Moomaw, K. S. Gallagher, P. H. Kirshen, and D. H. Marks. 2014. “The Water Consumption of Energy Consumption: An International Comparison.” Environmental Research Letters. http://iopscience.iop.org/1748-9326/9/10/105002/article.

UNEP (United Nations Environment Progamme). 2011. “Environmental Assessment of Ogoniland.” http://postconflict.unep.ch/publications/OEA/UNEP_OEA.pdf.

Williams, E. D., and J. E. Simmons. 2013. “Water in the Energy Industry: An Introduction.” http://www.bp.com/content/dam/bp/pdf/sustainability/group-reports/BP-ESC-water-handbook.pdf.

WWAP (United Nations World Water Assessment Programme). 2014. “The United Nations World Water Development Report 2014: Water and Energy.” Paris. http://unesdoc.unesco.org/imag-es/0022/002257/225741E.pdf.

The authors thank peer reviewers David John Santley, senior petroleum specialist, and Daniele La Porta, senior mining specialist, both of the World Bank’s Energy and Extractives Global Practice.

make fuRTheR ConneCTions

live Wire 2015/41. “Thirsty Energy: Understanding the linkages between Energy and Water,” by anna delgado, diego J. rodriguez, and antonia a. sohns.

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1 T r a c k i n g P r o g r e s s T o w a r d P r o v i d i n g s u s T a i n a b l e e n e r g y f o r a l l i n e a s T a s i a a n d T h e Pa c i f i c

THE BOTTOM LINE

where does the region stand

on the quest for sustainable

energy for all? in 2010, eaP

had an electrification rate of

95 percent, and 52 percent

of the population had access

to nonsolid fuel for cooking.

consumption of renewable

energy decreased overall

between 1990 and 2010, though

modern forms grew rapidly.

energy intensity levels are high

but declining rapidly. overall

trends are positive, but bold

policy measures will be required

to sustain progress.

2014/28

Elisa Portale is an

energy economist in

the Energy Sector

Management Assistance

Program (ESMAP) of the

World Bank’s Energy and Extractives

Global Practice.

Joeri de Wit is an

energy economist in

the Bank’s Energy and

Extractives Global

Practice.

A K N O W L E D G E N O T E S E R I E S F O R T H E E N E R G Y & E X T R A C T I V E S G L O B A L P R A C T I C E

Tracking Progress Toward Providing Sustainable Energy

for All in East Asia and the Pacific

Why is this important?

Tracking regional trends is critical to monitoring

the progress of the Sustainable Energy for All

(SE4ALL) initiative

In declaring 2012 the “International Year of Sustainable Energy for

All,” the UN General Assembly established three objectives to be

accomplished by 2030: to ensure universal access to modern energy

services,1 to double the 2010 share of renewable energy in the global

energy mix, and to double the global rate of improvement in energy

efficiency relative to the period 1990–2010 (SE4ALL 2012).

The SE4ALL objectives are global, with individual countries setting

their own national targets in a way that is consistent with the overall

spirit of the initiative. Because countries differ greatly in their ability

to pursue the three objectives, some will make more rapid progress

in one area while others will excel elsewhere, depending on their

respective starting points and comparative advantages as well as on

the resources and support that they are able to marshal.

To sustain momentum for the achievement of the SE4ALL

objectives, a means of charting global progress to 2030 is needed.

The World Bank and the International Energy Agency led a consor-

tium of 15 international agencies to establish the SE4ALL Global

Tracking Framework (GTF), which provides a system for regular

global reporting, based on rigorous—yet practical, given available

1 The universal access goal will be achieved when every person on the planet has access

to modern energy services provided through electricity, clean cooking fuels, clean heating fuels,

and energy for productive use and community services. The term “modern cooking solutions”

refers to solutions that involve electricity or gaseous fuels (including liquefied petroleum gas),

or solid/liquid fuels paired with stoves exhibiting overall emissions rates at or near those of

liquefied petroleum gas (www.sustainableenergyforall.org).

databases—technical measures. This note is based on that frame-

work (World Bank 2014). SE4ALL will publish an updated version of

the GTF in 2015.

The primary indicators and data sources that the GTF uses to

track progress toward the three SE4ALL goals are summarized below.

• Energy access. Access to modern energy services is measured

by the percentage of the population with an electricity

connection and the percentage of the population with access

to nonsolid fuels.2 These data are collected using household

surveys and reported in the World Bank’s Global Electrification

Database and the World Health Organization’s Household Energy

Database.

• Renewable energy. The share of renewable energy in the

energy mix is measured by the percentage of total final energy

consumption that is derived from renewable energy resources.

Data used to calculate this indicator are obtained from energy

balances published by the International Energy Agency and the

United Nations.

• Energy efficiency. The rate of improvement of energy efficiency

is approximated by the compound annual growth rate (CAGR)

of energy intensity, where energy intensity is the ratio of total

primary energy consumption to gross domestic product (GDP)

measured in purchasing power parity (PPP) terms. Data used to

calculate energy intensity are obtained from energy balances

published by the International Energy Agency and the United

Nations.

2 Solid fuels are defined to include both traditional biomass (wood, charcoal, agricultural

and forest residues, dung, and so on), processed biomass (such as pellets and briquettes), and

other solid fuels (such as coal and lignite).

1 T r a c k i n g P r o g r e s s To wa r d P r o v i d i n g s u s Ta i n a b l e e n e r g y f o r a l l i n e a s T e r n e u r o P e a n d c e n T r a l a s i a

THE BOTTOM LINE



energy for all? The region

has near-universal access to

electricity, and 93 percent of

the population has access


despite relatively abundant

hydropower, the share

of renewables in energy

consumption has remained

relatively low. very high energy

intensity levels have come

down rapidly. The big questions

are how renewables will evolve

when energy demand picks up

again and whether recent rates

of decline in energy intensity

will continue.

2014/29

Elisa Portale is an

energy economist in

the Energy Sector




Global Practice.

Joeri de Wit is an

energy economist in


Extractives Global

Practice.



for All in Eastern Europe and Central Asia




(SE4ALL) initiative


All,” the UN General Assembly established three global objectives

to be accomplished by 2030: to ensure universal access to modern

energy services,1 to double the 2010 share of renewable energy in

the global energy mix, and to double the global rate of improvement

in energy efficiency relative to the period 1990–2010 (SE4ALL 2012).






















the GTF in 2015.



Energy access. Access to modern energy services is measured

by the percentage of the population with an electricity connection

and the percentage of the population with access to nonsolid fuels.2

These data are collected using household surveys and reported

in the World Bank’s Global Electrification Database and the World

Health Organization’s Household Energy Database.

Renewable energy. The share of renewable energy in the energy

mix is measured by the percentage of total final energy consumption

that is derived from renewable energy resources. Data used to

calculate this indicator are obtained from energy balances published

by the International Energy Agency and the United Nations.

Energy efficiency. The rate of improvement of energy efficiency is

approximated by the compound annual growth rate (CAGR) of energy

intensity, where energy intensity is the ratio of total primary energy

consumption to gross domestic product (GDP) measured in purchas-

ing power parity (PPP) terms. Data used to calculate energy intensity

are obtained from energy balances published by the International

Energy Agency and the United Nations.

This note uses data from the GTF to provide a regional and

country perspective on the three pillars of SE4ALL for Eastern




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for practitioners inside

and outside the Bank.

It is a resource to

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counterparts.”

1 U n d e r s t a n d i n g C O 2 e m i s s i O n s f r O m t h e g l O b a l e n e r g y s e C t O r

Understanding CO2 Emissions from the Global Energy Sector

Why is this issue important?

Mitigating climate change requires knowledge of the

sources of CO2 emissions

Identifying opportunities to cut emissions of greenhouse gases

requires a clear understanding of the main sources of those emis-

sions. Carbon dioxide (CO2) accounts for more than 80 percent of

total greenhouse gas emissions globally,1 primarily from the burning

of fossil fuels (IFCC 2007). The energy sector—defined to include

fuels consumed for electricity and heat generation—contributed 41

percent of global CO2 emissions in 2010 (figure 1). Energy-related

CO2 emissions at the point of combustion make up the bulk of such

emissions and are generated by the burning of fossil fuels, industrial

waste, and nonrenewable municipal waste to generate electricity

and heat. Black carbon and methane venting and leakage emissions

are not included in the analysis presented in this note.

Where do emissions come from?

Emissions are concentrated in a handful of countries

and come primarily from burning coal

The geographical pattern of energy-related CO2 emissions closely

mirrors the distribution of energy consumption (figure 2). In 2010,

almost half of all such emissions were associated with the two

largest global energy consumers, and more than three-quarters

were associated with the top six emitting countries. Of the remaining

energy-related CO2 emissions, about 8 percent were contributed

by other high-income countries, another 15 percent by other

1 United Nations Framework Convention on Climate Change, Greenhouse Gas Inventory

Data—Comparisons By Gas (database). http://unfccc.int/ghg_data/items/3800.php

middle-income countries, and only 0.5 percent by all low-income

countries put together.

Coal is, by far, the largest source of energy-related CO2 emissions

globally, accounting for more than 70 percent of the total (figure 3).

This reflects both the widespread use of coal to generate electrical

power, as well as the exceptionally high CO2 intensity of coal-fired

power (figure 4). Per unit of energy produced, coal emits significantly

more CO2 emissions than oil and more than twice as much as natural

gas.

2014/5

THE BOTTOM LINE

the energy sector contributes

about 40 percent of global

emissions of CO2. three-

quarters of those emissions

come from six major

economies. although coal-fired

plants account for just

40 percent of world energy

production, they were

responsible for more than

70 percent of energy-sector

emissions in 2010. despite

improvements in some

countries, the global CO2

emission factor for energy

generation has hardly changed

over the last 20 years.

Vivien Foster is sector

manager for the Sus-

tainable Energy Depart-

ment at the World Bank

([email protected]).

Daron Bedrosyan

works for London

Economics in Toronto.

Previously, he was an

energy analyst with the

World Bank’s Energy Practice.

A K N O W L E D G E N O T E S E R I E S F O R T H E E N E R G Y P R A C T I C E

Figure 1. CO2 emissions

by sector

Figure 2. energy-related CO2

emissions by country

Energy41%

Roadtransport

16%

Othertransport

6%

Industry20%

Residential6%

Othersectors

10%China30%

USA19%

EU11%

India7%

Russia7%

Japan 4%

Other HICs8%

Other MICs15%

LICs0.5%

Notes: Energy-related CO2 emissions are CO2 emissions from the energy sector at the point

of combustion. Other Transport includes international marine and aviation bunkers, domestic

aviation and navigation, rail and pipeline transport; Other Sectors include commercial/public

services, agriculture/forestry, fishing, energy industries other than electricity and heat genera-

tion, and other emissions not specified elsewhere; Energy = fuels consumed for electricity and

heat generation, as defined in the opening paragraph. HIC, MIC, and LIC refer to high-, middle-,

and low-income countries.

Source: IEA 2012a.

1 T r a c k i n g P r o g r e s s To wa r d P r o v i d i n g s u s Ta i n a b l e e n e r g y f o r a l l i n e a s T e r n e u r o P e a n d c e n T r a l a s i a

THE BOTTOM LINE



energy for all? The region

has near-universal access to

electricity, and 93 percent of

the population has access


despite relatively abundant

hydropower, the share

of renewables in energy

consumption has remained

relatively low. very high energy

intensity levels have come

down rapidly. The big questions

are how renewables will evolve

when energy demand picks up

again and whether recent rates

of decline in energy intensity

will continue.

2014/29

Elisa Portale is an

energy economist in

the Energy Sector




Global Practice.

Joeri de Wit is an

energy economist in


Extractives Global

Practice.



for All in Eastern Europe and Central Asia




(SE4ALL) initiative


All,” the UN General Assembly established three global objectives

to be accomplished by 2030: to ensure universal access to modern

energy services,1 to double the 2010 share of renewable energy in

the global energy mix, and to double the global rate of improvement

in energy efficiency relative to the period 1990–2010 (SE4ALL 2012).






















the GTF in 2015.



Energy access. Access to modern energy services is measured

by the percentage of the population with an electricity connection

and the percentage of the population with access to nonsolid fuels.2

These data are collected using household surveys and reported

in the World Bank’s Global Electrification Database and the World

Health Organization’s Household Energy Database.

Renewable energy. The share of renewable energy in the energy

mix is measured by the percentage of total final energy consumption

that is derived from renewable energy resources. Data used to

calculate this indicator are obtained from energy balances published

by the International Energy Agency and the United Nations.

Energy efficiency. The rate of improvement of energy efficiency is

approximated by the compound annual growth rate (CAGR) of energy

intensity, where energy intensity is the ratio of total primary energy

consumption to gross domestic product (GDP) measured in purchas-

ing power parity (PPP) terms. Data used to calculate energy intensity

are obtained from energy balances published by the International

Energy Agency and the United Nations.

This note uses data from the GTF to provide a regional and

country perspective on the three pillars of SE4ALL for Eastern




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