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ENERGY
RETREAT LABORATORY CGSS
Cinta Sayang Resort & The Carnival
Sungai Petani
21-24 August 2014
Overview of Energy
We l e a d
• What is energy?
 Derives from Ancient Greek “energeia”
 Defined as the ability or capacity of a system to do
action or energy is the ability to do work
 Measured in terms of how much ‘work’ it can
deliver; be it moving, cooling or lighting something
 This definition allows the quantification of energy;
understand how it is used, how it changes form,
how to increase energy efficiency (EE) and how to
make inform comparison between various energy
resources
Overview of Energy
We l e a d
• Brief historical development of demand
 World energy time travel and change in the energy
mix
Age of wood
Age of coal
Age of oil
Overview of Energy
We l e a d
 World energy per capita consumption of various
fuels
 Exponential growth in energy usage; primary energy
such as combustion of fossil fuels or secondary
energy in the form of electricity
Overview of Energy
We l e a d
• Seven different energy forms
 Kinetic energy – due to motion
 Potential energy – stored due to position
 Chemical energy – stored in bonds of atoms and
molecules
 Thermal energy – random motion and vibration of
atoms and molecules
 Electrical energy – flow of electric charge
 Radiant energy – propagated by electromagnetic
waves
 Nuclear energy – holds nucleus together in an atom
Malaysia’s Energy Policies
We l e a d
• Petroleum Development Act (PDA), 1974 – led
to the establishment of PETRONAS
• National Petroleum Policy (NPP), 1975 – to
further regulate the oil and gas industry for their
efficient utilization
• National Energy Policy (NEP), 1979 – to set the
framework and direction for energy production
and utilization, including minimizing negative
environmental impacts
Malaysia’s Energy Policies
We l e a d
• National Depletion Policy (NDP), 1980 – to
ensure preservation of national oil and gas
reserves
• The Four Fuel Diversification Policy, 1981 – to
secure a better way of maintaining energy
reliability through diversification of energy
supply, a balance energy supply mix of oil, gas,
coal and hydropower
• Renewable Energy (RE) as the Fifth Fuel, 2001 –
RE as fifth fuel to supplement conventional
energy resources
Malaysia’s Energy Policies
We l e a d
• National Green Technology Policy, 2009 – Green
Technology (GT) shall be a driver to accelerate
the national economy and promote sustainable
development
• National Renewable Energy Policy, 2010 –
enhancing utilization of indigenous RE resources
for national electricity supply security and
sustainable socioeconomic development
• New Energy Policy & 10th Malaysia Plan, 2010 –
role of energy to lift the economy towards a
higher growth
Non-Renewable Energy
We l e a d
• Three major forms of fossil fuels; coal, oil and
natural gas
• Found within the rocks of the Earth’s surface
• Formed many hundreds of millions of years ago
by geological processes acting on plants and
dead animals, respectively
• Once used up they cannot be replaced, i.e. finite
resources of energy
Non-Renewable Energy
We l e a d
• Coal
 A combustible, sedimentary, organic rock, composed
mainly of carbon, hydrogen and oxygen
• Oil and natural gas
 Chemicals made from molecules containing just
carbon and hydrogen, in the form of chemical
compounds known as hydrocarbons
 Crude oil is a sticky, gooey black stuff, with many
different molecules, but all are made of carbon and
hydrogen atoms
 A simple molecule called methane (CH4), is the main
component of natural gas
Coal – Global Production Values
We l e a d
• 2011 estimation of proven coal reserves
worldwide – 948 billion tonnes
• Enough coal for the next 190 years
• Biggest reserves are in USA, Russia, China,
Australia and India
Rest of World,
192,281, 20%
United States,
260,551, 28%
Germany,
44,863, 5%
India, 66,800,
7%
Australia,
84,217, 9%
Russia, 173,074,
18%
China, 126,215,
13%
Coal Reserves, 2011 (billion tonnes)
Coal – Global Production Values
We l e a d
• Over 4000 million tonnes produced in 2012, a 38%
increase over the past 20 years
• Production has grown fastest in Asia, with a decline in
Europe
• Global production expected to reach 7 billion tonnes in
2030, with China contributing around half the increase
Coal – Global Production Values
We l e a d
• Coal is mined commercially in over 50 countries
and used in over 70 countries
• World trading map to America, Asia, and Europe
in year 2010 in millions of tonnes
Coal – National Production Values
We l e a d
• Malaysia’s coal reserves amount to around 1.9
billion tonnes
National Coal Production
Sarawak 69%
Sabah 29%
Peninsular 2%
• All of the coal produced is for internal
consumption
Coal – Global Consumption Values
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• Global consumption was over 5000 million
tonnes in 2011
• Biggest market for coal is Asia, which accounts
for 54% of coal consumption
Coal – Global Consumption Values
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• Steam coal (thermal coal) is used in power stations to
generate electricity
• Coking coal is used in iron and steel production
• Coal provides 27.7% of global primary energy needs
and generates 66.6% of the world’s electricity
Other, 2.20%
Nuclear, 4.10%
Hydro, 6.10%
Biomass,
8.50%
Nuclear
Hydro
Gas, 22%
Coal, 27%
Gas
Oil
Coal
Biomass
Other
Oil, 30%
World primary energy consumption, 2012
Coal - National Consumption Values
We l e a d
• Coal is still projected to play a very important role in
Malaysia’s energy supply, even though accompanied by
major challenges like emission of GHGs and air
pollutants such as SO2 and CO2
• Technological advances in coal-based power plant have
made coal a much cleaner fuel
• 70% of the demand for coal is used for the generation
of power
• The remaining supply is consumed by cement, iron and
steel sectors
• Total consumption for electricity generation is projected
to increase to 36 million tonnes in 2020
Oil – Global Production Values
We l e a d
• Estimated global oil reserves in 2012 – 115 billion
bbl (oil barrel)
Oil – Global Production Values
We l e a d
• Oil is produced in more than 100 countries
• Top ten oil-producing countries accounted for
over 63% of the world’s oil production
Oil – Global Production Values
We l e a d
• Many factors can affect level of production, such
as
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War
Civil unrest
Natural disasters
National and international politics
Adherence to quotas
Oil demand
New discoveries
Technology development or application
Oil – National Production Values
We l e a d
• Malaysia’s proved oil reserves are fifth highest in
Asia-Pacific (after China, India, Vietnam and
Indonesia), and one of the top 30 highest
reserves in the world
Oil – National Production Values
We l e a d
• Nearly all of Malaysia’s oil comes from offshore
fields; the Malay basin offshore peninsular
Malaysia, Sarawak and Sabah basins
Oil – National Production Values
We l e a d
• At 2012 rate of production (643,000 barrels per
day (b/d)), the reserves will last an average of 25
years
• New discoveries of oil fields are required to
prolong the reserves to spare the use of nation’s
oil until 2038
• Heavy reliance on oil to sustain economic growth
is causing the government to emphasize fuel
diversification by promoting RE to ensure the
nation’s energy is secured
Oil - Global Consumption Values
We l e a d
• Oil gives us mobility, electricity and products
such as plastics, clothing and cosmetics
• World’s consumption of oil products reached a
record high of 88.9 million b/d in 2012
Oil - Global Consumption Values
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• Declining consumption in North America and
Europe was outpaced by growth in Asia and
other regions
• Asia’s consumption increased by 4.4 million b/d
between 2008 and 2012
• US consumption was reduced in 2011 and 2012
as a result of higher oil prices and increased fuel
efficiency of light-duty vehicles
• In spite of this, the US remains by far the largest
user of oil, consuming more than China
Oil – National Consumption Values
We l e a d
• Consumption of oil is mainly in the
transportation and industrial sectors
Oil – National Consumption Values
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• In 2010, 664,800 b/d of crude oil were
produced, of which 234,000 b/d were exported
• This is about 35% of crude oil production
• 205,000 b/d of lower-cost crude oil were
imported for processing at oil refineries for the
nation’s consumption
• Total consumption in 2010 is more than 500,000
b/d
• Focus on enhancing output from existing fields
and developing new fields in deep water areas
World Oil Price Scenario
We l e a d
• Price depends on the supply and demand
• Countries dependent on petroleum imports
suffer from high energy prices
Gas - Global Production Values
We l e a d
• World natural gas proved reserves
• Top 3 reserves are in Russia, Iran and Qatar
Gas - Global Production Values
We l e a d
• World natural gas production for top 10
countries
• Natural gas production for 2011 was estimated
to be 118043.5 billion cubic feet of volume
Gas - National Production Values
We l e a d
• Malaysia’s gas reserves are predominantly
located in offshore of Sarawak
Gas - National Production Values
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• Is the fourth largest natural gas reserves holder
in the Asia-Pacific region, and top 15 in world
ranking
• The natural gas production offshore Sarawak
supports liquefied natural gas (LNG) exports
from Bintulu
• In 2012, Malaysia was the world’s second largest
exporter of LNG after Qatar (10% of total world
LNG exports)
• Malaysia’s natural gas production has risen
steadily over the past two decades
Gas - National Production Values
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• Based on 2010 natural gas reserves and rate of
production, the reserves is expected to last an
average of 39 years
Gas - Global Consumption Values
We l e a d
Gas - Global Consumption Values
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• The amount consumed in 2012 by USA was
24,094.8 bcf followed by Russia with 16,417.1
bcf, Iran and China with 5,439.2 and 4630.5 bcf,
respectively
• It is the fuel of choice for electric power and
industrial sectors, due to its lower carbon
intensity compared with coal and oil
• Attractive fuel source in countries implementing
policies to reduce GHG emissions
Gas - National Consumption Values
We l e a d
• The power sector consumes about 74% of
natural gas market sales
• Rising domestic demand and LNG export
contracts place pressure on gas supply
Effect of Population
We l e a d
• The UN predicts a global population of  9
billion people in 2050, 2 billion more people
than are alive today
• Growing populations consume more energy
• Increase in energy consumption exerts demands
on energy resources making them scarcer and
harder to extract
• Forests have been depleted, coal mines dug
deeper, oil and gas drilled in more complex
environment, for sufficient energy supply
Effect of Population
We l e a d
• Earth could not support the current population
without first the commercialization of coal, then
of oil and, more recently, gas
• These energy sources are responsible for the
unprecedented population growth over the last
300 years, but environmental unfriendly
• Population will no longer grow unless current
energy resource production is increased and
new resources exploited
• New resources must be GHGs-free alternatives
Affect to Poverty
We l e a d
• Over 1.6 billion people – almost one third of
humanity – have no electricity
• Lack of access to efficient modern energy has
significant impact on economic development
and small-scale enterprise, educational
opportunities, infant mortality and quality of life
• United Nations Development Programme
(UNDP) states that “None of the Millennium
Development Goals (MDGs) can be met without
major improvement in the quality and quantity
of energy services in developing countries”
Affect to Poverty
We l e a d
• Commission for Sustainable Development (CSD)
concluded “To implement the goal accepted by
the international community to halve the
proportion of people living on less than US$1
per day by 2015, access to affordable energy
services is a prerequisite”
• The International Energy Agency (IEA) has
recommended that the number of people
without electricity should be reduced to 1 billion
Affect to Poverty
We l e a d
• The main issues to be tackled on energy access
for the poor are;
 Recognizing the right to energy – basis of justice for
the poor
 Political willingness from governments – their
responsibility
 The funding gap on energy access for the poor –
subsidies, financial incentives, clear policies on
tariffs
 Clear and specific pro-poor policies and strategies –
rapid implementation
Affect to Poverty
We l e a d
 Sustainability of energy access – creation of local
capacities, mobilization of local capital, energy
literacy
 Allowance of greenhouse gas emissions – using all of
the energy mix available
 Alternative climate change mechanisms – new
mechanism to transfer existing carbon market funds
towards projects which directly reduce energy
poverty
Affect to Climate Change
We l e a d
• Climate change is one of the greatest
environmental threats the world is facing
• Leading to catastrophic events such as storms,
droughts, sea level rise and floods
• An energy system based on fossil fuels is mainly
responsible for GHGs emissions that lead to
global warming and climate change
• RE provides one of the leading solutions to affect
the climate change issue, the other one being
efficient in the usage of energy
Affect to Climate Change
We l e a d
• By providing “carbon-neutral” sources of power,
heat, cooling and transport fuels, RE options
such as wind, solar, biomass, hydro, geothermal,
wave and tidal offer a safe transition to a low
carbon economy
• Inter-governmental Panel on Climate Change
(IPCC) predicts that global average temperatures
are likely to rise between 1.4 to 5.8 C over this
century, depending on the amount of fossil fuels
burnt and the sensitivity of the climate system
Disaster Risk Management Mitigation
We l e a d
• Web definition
 The systematic management of administrative
decisions, organization, operational skills and
capacities to implement policies, strategies and
coping capacities of the society and communities to
lessen the impacts of natural hazards and related
environmental and technological disasters. This
comprises all forms of actions, including structural
and non-structural measures to avoid (prevention) or
to limit (mitigation and preparedness) adverse effects
of hazards
Climate Change and Disaster Risk
Management Mitigation
We l e a d
• If climate change is not contained and the
currently rising GHGs emissions are not reduced
significantly, the adverse consequences of climate
change will undermine development gains,
including poverty reduction
• Incorporating both climate change action and
disaster risk management mitigation is a
prerequisite for achieving sustainable and more
resilient development
Climate Change and Disaster Risk
Management Mitigation
We l e a d
• Progress has been achieved at the global level to
help guide and drive regional and national
processes on climate change and disaster risk
management mitigation through Conference of
Parties (COP) of the United Nations Framework
Convention on Climate Change (UNFCCC)
• At the national and sub-national level,
implementation has been channelled through
integrated policies and plans, joint working
groups and comprehensive activities on the
ground
Thank you
Presented by Haslan ABU HASSAN
CETREE&GT
USM