2016/56 102679 k nKonw A A weldegdeg e ol n oNtoet e s eSrei r e ise s f ofro r p r&a c t hteh e nEenregryg y Etx itcrea c t i v e s G l o b a l P r a c t i c e The bottom line Thirsty Energy (II): The effect of oil and gas development on local and The Importance of Water for Oil and Gas Extraction regional water resources can profoundly change a region’s Why is this issue important? or disposal of wastewater; and the impacts on the watershed and economic possibilities, its surrounding environment. water environment, and the Water and energy are inextricably linked, vitality of its ecosystem. It is but energy development often proceeds without How does water figure in fossil fuel development? necessary to tackle the water- sufficient attention to water’s sustainable use energy challenge today through Water is ubiquitous in oil and gas production technological innovations and The water requirements needed for oil and gas extraction are often Water is used in all stages of oil and gas development, extraction, institutional changes, such as invisible to the public eye. Although oil and gas development is not and processing (WWAP 2014). Operations may consume water or integrated planning and valuing a significant water consumer when compared to other industries, remove large quantities of water; the water is then used for drilling, water as a resource. More agriculture, or municipal needs, its water demands can have acute information on the Thirsty Energy impacts on local water resources and increase conflicts between washing, and processing. The energy sector’s water use varies initiative can be found at www. water users in areas of high water stress or in times of drought. Last depending on the fuel type, the method of extraction, the geology, worldbank.org/thirstyenergy. year, the United Nations stated that energy development, such as the degree of processing required, the geography, and the climate shale gas and oil production, might pose significant risks to water of the site under development. Conversely, constraints on water resources and exacerbate tensions between sectors (Patel 2014). availability influence the choice of technology in the industry, site To meet future energy demands, fossil fuels will continue to dom- selection, and other aspects of resource development. inate the fuel mix, with oil, gas, and coal each converging on market Figure 1 depicts the range of water required for various energy Antonia A. Sohns resources. Biofuels’ water needs and environmental impact depend shares of around 26–27 percent by 2035, while nuclear, hydropower, is a water and energy and renewables will have a share of around 5–7 percent (BP 2014; on the crop and whether or not it is rain-fed or irrigated. analyst in the World Bank’s Global Water Practice. Williams 2013). Thirty-eight percent of the world’s shale resources are When primary production begins in conventional oil production, in areas that either are arid or are experiencing extremely high levels the natural reservoir pressure is typically sufficient to allow fluids Diego J. Rodriguez is a senior economist of water stress (Reig, Luo, and Proctor 2014). Energy development to flow out of the reservoir formation, into the wellbore, and up to in the Global Water in eight of the top twenty countries that have recoverable shale gas the surface. However, as reservoir pressure declines, water is often Practice. and tight oil resources, including China, South Africa, Mexico, Egypt, needed to maintain pressure and to keep up the production rate. In Anna Delgado is a and India, might be curtailed because of that stress. As a result, some instances, this primary production phase is followed by sec- technical specialist in water concerns will be a major constraint on future oil and gas ondary recovery processes, such as waterflooding or the injection of water and energy in the development (Reig, Luo, and Proctor 2014). treated water, that drive residual oil to the production wells. Offshore Global Water Practice. It is possible to assess the effect of fossil fuel development on conventional oil development makes use of treated seawater for the water life cycle by the quantity and source of water required waterflooding, greatly diminishing the use of freshwater (Williams for operations; water management practices; recycling, treatment, 2013). To extend a field’s economic life, a tertiary process to enhance 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 te r f o r Oi l a n d G a s E x t r a c ti o n Figure 1. Water demand by fuel type Broadly, extraction technologies for unconven- tional oil resources are determined by whether the Conventional gas Water withdrawal (in liters) resource is being accessed by well or by surface Coal Water consumption (in liters) mining. In well extraction, techniques are divided into two groups that are based on whether the Shale gas target energy resource is stimulated by increasing “The recent development Refined oil (conventional) or reducing its viscosity: Cold production is used of unconventional Refined oil (oil sands) primarily for shale oil, tight oil, or heavy oil. The fossil fuels has brought viscosity of these resources is increased by using Gas-to-liquids horizontal wells that have lateral branches and by international attention Coal-to-liquids then injecting water and chemicals for pressure to the tension between maintenance. Hydraulic fracturing can also be used Refined oil (enhanced oil recovery) energy and water. As new to stimulate low-permeability rock formations. <1 101 102 103 104 105 projects begin, industry Source: www.worldbank.org/thirstyenergy. liters per metric ton of oil Thermal production is used to exploit heavy oil and officials and politicians oil sands by reducing viscosity with heat, allowing the target energy resource to flow and be recov- have a historic opportunity ered. For surface mining of oil sands and oil shales, to correlate the water purified water is used to extract bitumen from needs of energy extraction oil recovery (EOR) is used by injecting gas or steam to pressurize the mined sand. Water quality issues raised by surface reservoir and lower the viscosity of the remaining oil. retorting of oil shales are similar to those raised by mined oil sands. with sustainable water In conventional gas development, gas is under pressure within Figure 3 depicts how shale is fractured hydraulically by using management practices.” the reservoir naturally, thus no water injection is required when a water-based fluids, which are injected at a high pressure into a well is developed; instead, the gas spontaneously expands, flows into horizontal well. The gas released from the rock flows back up the the wellbore, and then heads up to the surface. In conventional res- well and into the separator, moving with the injected and natural fluid ervoirs, the gas moves through the porous reservoir rock toward the from the geologic formation. The water is then treated and can be wellbore. As a result, conventional natural gas development primarily exported, disposed of, or recycled for future operations. consumes water in drilling processes, not in gas stimulation. The recent development of unconventional fossil fuels has Water, therefore, is essential in drilling, pressure maintenance, brought international attention to the tension between energy and all stages of production. Figure 2 shows the interaction of water and water. The production of unconventional fuels requires more and energy in the secondary and tertiary processes of conventional water than conventional gas fuels, but less than conventional oils oil development. (Kuwayama 2015). On average, hydraulic fracturing in the United In comparison, unconventional oil and gas production—such as States requires an estimated 2–5 million gallons of water per well shale gas or so-called tight oil—harnesses hydrocarbons that are in (Allen 2013). Uncertainty regarding water use within an oil field that is less-permeable rock formations, of a lesser grade, or more difficult to under development can be as great as or greater than the variability capture. To develop these resources, alternative means of stimulation of water use between fields in different regions. As new projects and production are required, and processes vary depending on the expand across countries such as the United States, United Kingdom, deposit type—but all involve water. Poland, and Argentina, industry officials and politicians have a Oil, gas, and water reach the surface and are separated for historic opportunity to correlate the water needs of energy extraction export and processing at the refinery; for wastewater disposal; or for with sustainable water management practices. recycling and reuse to stimulate future oil recovery. 3 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 te r f o r Oi l a n d G a s E x t r a c ti o n Figure 2.  Water use in the secondary and tertiary processes of conventional Why is water use by the oil and gas oil development industry a problem? Chemical additives and/or Oil Gas hydrocarbon gas or CO2 for export for export Concerns are growing about the sector’s demand for water and “Sustainable water Fresh water Other disposal about preserving water quality or Reused produced water Separator of produced water Saline management practices or Water treatment brackish water Low- Sustainable water management practices salinity are needed to prevent oil water are needed to prevent oil and gas operations and gas operations from Injection well Production well from increasing water use to the point that increasing water use to the it threatens use by other sectors and from damaging the surrounding environment’s point that it threatens use water quality through spills, leaks, inefficient by other sectors and from treatment of wastewater, and other contami- damaging the surrounding Key Mixed water Oil, gas and water nation events. environment’s water When assessing the effect of oil and Pump gas production on the quantity of water quality.” Source: Williams and Simmons 2013. resources, it is important to consider water use in the local context. For example, in Figure 3.  Water use in unconventional natural gas production the Eagle Ford shale region in Texas, water in shale consumption by the shale gas industry represents about 5 percent Fresh or Gas Fluid for of total water consumption in the counties under development Fracturing fluid brackish for export to other water export fracturing jobs (relative to less than 1 percent statewide) but is projected to increase Proppant additives Recycled produced water 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 Fracturing Treatment and gas operations will require nearly one-third of the 1.96 billion mixers Separator plant and pumps cubic meters of the water used annually in Coahuila by all sectors (Schneider 2015). Oil and gas operations can, therefore, greatly affect Surface Fluid for disposal water availability in time and place, and the operation’s consumption of those resources may affect other sectors’ water usage. Where Potable aquifer 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 Gas-rich shale layer reservoir characteristics, and the recycling infrastructure. In regions where freshwater is scarce or in high demand for other uses, energy Key extraction operations may use alternate sources of water, such as Pump Saline – non-potable aquifer saline water or recycled wastewater. During production, the water that returns to the surface carrying oil or gas is known as flowback, Source: Williams and Simmons 2013. 4 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 te r f o r Oi l a n d G a s E x t r a c ti o n or produced water, and it can be recycled. Although recycling water Companies and governments are employing a range of is an important aspect of water management in many regions, wells approaches for improving water management and regulation in that return less water to the surface or inadequate recycling facilities an effort to reduce the effects of oil and gas production on water can limit the impact of recycling. In the arid Middle East, companies resources. use seawater and brackish water in offshore drilling, consuming no Technical improvements in the areas of wastewater reuse and “With increased data freshwater at all. recycling should be maximized in operations because the improve- collection, accessibility, Hydraulic fracturing may pose a greater threat to water quality ments decrease operational costs and increase the sustainability than quantity. In hydraulic fracturing development, surface water of operations. In Wyoming, operating companies have been piping and improved water bodies may become contaminated by the accidental release of frac- produced water from wells to a central gathering system (CGS) that management, it should turing fluid, flowback, produced water, or partially treated wastewa- then treats and returns the produced water to companies for reuse be possible for energy ter. Increased concentrations of chloride, bromide, suspended solids, in future operations. Such recycling systems allow companies to resources to be managed and radionuclides have been documented downstream of treatment minimize transportation costs by piping liquids from the well to the plants that handle wastewater from energy extraction; the release of treatment facility as opposed to using trucks (Sohns 2014). In the within the local water these chemicals harms aquatic wildlife (Kuwayama 2015). Two U.S. Marcellus shale field, high disposal costs were a key driver for the context, the natural federal agencies found that contaminated groundwater was coming attainment of nearly 90 percent reuse of produced water. One com- precipitation regime, and from hydraulic fracturing activities in Pavillion, Wyoming (EPA 2011). pany conducting hydraulic fracturing operations in the Marcellus field available water resources.” In Alberta, Canada, energy developers contaminated groundwater by estimated annual cost savings of $3.2 million due to greater water overstimulating a well (ERC Board 2010). reuse (DOE 2013). Wastewater from conventional oil development Even in the context of the Middle East’s low water use for energy in California has also been reused to help severely drought-afflicted development, conventional oil and fossil fuel extraction can damage agricultural counties irrigate crops (Schlanger 2015). water quality through tailings seepage, flowback, or produced water Petroleum engineers are developing technologies that can help from operations. In Ecuador, an oil spill polluted drinking water, stimulate unconventional resources through a form of hydraulic frac- cutting off 80,000 people’s water supply (BBC 2013). In Nigeria, oil turing that replaces water with liquid nitrogen or uses a super-critical exploration and the resulting spills profoundly degraded the environ- fluid of chilled carbon dioxide. This and other advances will bring ment (UNEP 2011). previously uneconomical fuel sources to market. The viability of various sources in light of economics and water constraints deter- What is the way forward? mines the fuel that is available for power generation, affecting water savings across the entire energy generation life cycle. For example, We must find and exploit ways to decrease the impact where there has been a growing supply of natural gas from uncon- of oil and gas development on local water resources ventional gas resources, there also has been increased construction As demand for water and energy grows in response to population of natural gas combined cycle (NGCC) power plants that consume and economic growth, and as climate change affects the pattern and approximately half as much water as coal-fired power plants. reliability of energy and water supply and usage, energy companies Governments and energy planners recognize that today’s have sought to develop policies that fully account for their impact choices and investments will determine what energy mix meets on water resources. With increased data collection, accessibility, future demands; how innovations will be welcomed into the market; and improved water management, it should be possible for energy and, therefore, what impact energy extraction will have on water resources to be managed within the local water context, the natural development. Integrated planning of water and energy infrastruc- precipitation regime, and available water resources. tures can increase efficiencies and generate new resources. Piping networks and CGS infrastructure highlight how coordinated energy 5 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 te r f o r Oi l a n d G a s E x t r a c ti o n development and water reuse can benefit the environment and the DOE (Department of Energy). 2013. “U.S. Energy Sector Vulnerabilities economy. A recent study found that the volume of gas flared in Texas to Climate Change and Extreme Weather.” http://energy.gov/ in 2012 would be sufficient to cover the thermal energy requirements sites/prod/files/2013/07/f2/20130710-Energy-Sector-Vulnerabili- needed to treat wastewater for use in hydraulically fracturing in ties-Report.pdf. 9,400–28,000 wells (Glazer 2014). Innovative synergies, such as using EPA (U.S. Environmental Protection Agency) 2011. “Draft Investigation “Innovative synergies, such flared natural gas to power wastewater treatment on site, will save of Groundwater Contamination Near Pavillion, Wyoming.” as using flared natural money, diminish freshwater demands, decrease the energy needs of December. http://www.epa.gov/sites/production/files/docu- water, and protect the environment. ments/EPA_ReportOnPavillion_Dec-8-2011.pdf. gas to power wastewater Challenges to water and energy planning remain, including ERC Board (Energy Resources Conservation Board). 2010. “Alberta’s treatment on site, will save creating new impact-assessment strategies that account for local Energy Reserves 2010 and Supply/Demand Outlook 2011-2020.” money, diminish freshwater and regional variability when estimating water-related impacts Calgary, Alberta, Canada. demands, decrease the of energy development and production (Mauter 2014). The rapid Glazer, Yael, Jill B. Kjellsson, Kelly T. Sanders, and Michael E. expansion of drilling and energy development emphasizes that new Webber. 2014. “Potential for Using Energy from Flared Gas for energy needs of water, and research aimed at quantifying water-quality impacts, characterizing On-Site Hydraulic Fracturing Wastewater Treatment in Texas.” protect the environment.” their pathways, and assessing options will be of high value to the Environmental Science & Technology Letters 1(7): 300–04. http:// industry and local governments (Kuwayama 2015). Further collection pubs.acs.org/doi/abs/10.1021/ez500129a. and dissemination of data will improve water and energy resource Kuwayama, Yusuke, Sheila Olmstead, and Alan Krupnick. 2015. “Water management, and quality metrics can be created to help regional Quality and Quantity Impacts of Hydraulic Fracturing.” Current policy making and advance integrated development (Spang 2014). Sustainable Renewable Energy Reports 2(1): 17–24. http://link. International collaboration and public-private partnerships should springer.com/article/10.1007%2Fs40518-014-0023-4. disseminate best practices to catalyze innovation and improve Mauter, S. Meagan, and many others. 2014. “Regional Variation regulations. The World Bank’s Thirsty Energy initiative, for example, in Water-Related Impacts of Shale Gas Development and assists countries in analyzing water and energy resources to improve Implications for Emerging International Plays.” Environmental long-term sustainability of operations and integrate energy and water Science and Technology. http://pubs.acs.org/doi/abs/10.1021/ planning within government agencies and the sectors. es405432k. Patel, Tara. 2014. “Global Energy Thirst Threatens Water References Supplies, UN Says.” Bloomberg Business. http:// www.bloomberg.com/news/articles/2014-03-21/ Allen, Lucy, Michael J. Cohen, David Abelson, and Bart Miller. 2013. global-energy-thirst-threatens-to-worsen-water-woes-un. “Fossil Fuels and Water Quality.” The World’s Water 7 (Chapter Reig, Paul, Tianyi Luo, and Jonathan Proctor. 2014. “Global Shale 4). http://worldwater.org/wp-content/uploads/sites/22/2013/07/ Gas Development: Water Availability and Business Risks.” chapter_4_fossil_fuel_and_water_quality.pdf. World Resources Institute. http://www.wri.org/publication/ BBC (British Broadcasting Corporation). 2013. “Brazil ‘On Alert’ global-shale-gas-development-water-availability-business-risks. over an Oil Spill from Ecuador.” http://www.bbc.com/news/ Schlanger, Zoe. 2015. “In California, Farmers Rely on Oil Wastewater world-latin-america-22836975. to Weather Drought.” Newsweek. http://www.newsweek.com/ BP (British Petroleum). 2014. “Energy Outlook 2035.” London, United california-farmers-rely-oil-wastewater-weather-drought-319648. Kingdom; January 2014. http://www.bp.com/en/global/corporate/ Schneider, Keith. 2015. “Water Development Could Deter Energy about-bp/energy-economics/energy-outlook.html. Developers From Crossing Border Into Northern Mexico.” 6 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 te r f o r Oi l a n d G a s E x t r a c ti o n Circle of Blue. http://www.circleofblue.org/waternews/2015/ UNEP (United Nations Environment Progamme). 2011. Make further choke-point-index/water-scarcity-could-deter-energy-develop- “Environmental Assessment of Ogoniland.” http://postconflict. connections ers-from-crossing-border-into-northern-mexico/. unep.ch/publications/OEA/UNEP_OEA.pdf. Sohns, Antonia. 2014. “What China and Other Nations Can Learn Williams, E. D., and J. E. Simmons. 2013. “Water in the Energy Industry: Live Wire 2015/41. “Thirsty from U.S. Shale Gas Hydraulic Fracturing Experience—POWER An Introduction.” http://www.bp.com/content/dam/bp/pdf/ Energy: Understanding the Magazine.” POWER Magazine. http://www.powermag.com/blog/ sustainability/group-reports/BP-ESC-water-handbook.pdf. Linkages between Energy what-china-and-other-nations-can-learn-from-u-s-shale-gas- WWAP (United Nations World Water Assessment Programme). 2014. and Water,” by Anna Delgado, hydraulic fracturing-experience/. “The United Nations World Water Development Report 2014: Diego J. Rodriguez, and Spang, E. S., W. R. Moomaw, K. S. Gallagher, P. H. Kirshen, and D. H. Water and Energy.” Paris. http://unesdoc.unesco.org/imag- Antonia A. Sohns. Marks. 2014. “The Water Consumption of Energy Consumption: es/0022/002257/225741E.pdf. An International Comparison.” Environmental Research Letters. http://iopscience.iop.org/1748-9326/9/10/105002/article. 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. Get Connected to Live Wire Live Wires are designed for easy reading on the screen and for downloading The Live Wire series of online knowledge notes is an initiative of the World Bank Group’s Energy and self-printing in color or “Live Wire is designed and Extractives Global Practice, reflecting the emphasis on knowledge management and solu- black and white. tions-oriented knowledge that is emerging from the ongoing change process within the Bank for practitioners inside Group. For World Bank employees: and outside the Bank. 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Once a year, the Energy and Extractives Global Practice takes stock of all notes that appeared, reviewing their quality and identifying priority areas to be covered in the following year’s pipeline. Please visit our Live Wire web page for updates: http://www.worldbank.org/energy/livewire e Pa c i f i c 2014/28 ainable energy for all in easT asia and Th 1 Tracking Progress Toward Providing susT TIVES GLOBAL PRACTICE A KNOWLEDGE NOTE SERIES FOR THE ENERGY & EXTRAC THE BOTTOM LINE Tracking Progress Toward Providing Sustainable Energy where does the region stand on the quest for sustainable for All in East Asia and the Pacific 2014/29 and cenTral asia energy for all? in 2010, eaP easTern euroPe sT ainable en ergy for all in databases—technical measures. This note is based on that frame- g su v i d i n had an electrification rate of Why is this important? ess Toward Pro work (World Bank 2014). SE4ALL will publish an updated version of 1 Tracking Progr 95 percent, and 52 percent of the population had access Tracking regional trends is critical to monitoring the GTF in 2015. to nonsolid fuel for cooking. the progress of the Sustainable Energy for All The primary indicators and data sources that the GTF uses to track progress toward the three SE4ALL goals are summarized below. consumption of renewable (SE4ALL) initiative C T I V E S G L O B A L P R A C T I C E ENERGY & EXTRA • Energy access. Access to modern energy services is measured T E S E R I E S F O R T H EIn declaring 2012 the “International Year of Sustainable Energy for energy decreased overall A KNO W L E D G E N Oand 2010, though by the percentage of the population with an electricity between 1990 All,” the UN General Assembly established three objectives to be connection and the percentage of the population with access Energy modern forms grew rapidly. d Providing Sustainable accomplished by 2030: to ensure universal access to modern energy energy intensity levels are high to nonsolid fuels.2 These data are collected using household Tracking Progress Towar services,1 to double the 2010 share of renewable energy in the global surveys and reported in the World Bank’s Global Electrification but declining rapidly. overall THE BOTTOM LINE energy mix, and to double the global rate of improvement in energy e and Central Asia trends are positive, but bold Database and the World Health Organization’s Household Energy for All in Eastern Europ efficiency relative to the period 1990–2010 (SE4ALL 2012). stand policy measures will be required where does the region setting Database. The SE4ALL objectives are global, with individual countries on that frame- on the quest for sustainable to sustain progress. is based share of renewable energy in the their own national targets databases— technical in a measures. way that is Thisconsistent with the overall of • Renewable energy. The note version energy for all? The region SE4ALL will publish an updated their ability energy mix is measured by the percentage of total final energy to Why is this important ? spirit of the work initiative. (World Bank Because2014). countries differ greatly in has near-universal access consumption that is derived from renewable energy resources. of trends is critical to monitoring to pursue thetheGTF in 2015. three objectives, some will make more rapid progress GTF uses to Data used to calculate this indicator are obtained from energy electricity, and 93 percent Tracking regional othersindicators primary will excel and data sources that elsewhere, depending on their the while the population has access le Energy for All in one areaThe goals are summarized below. balances published by the International Energy Agency and the the progress of the Sustainab respective track starting progress pointstowardand the three SE4ALL comparative advantages as well as on services is measured to nonsolid fuel for cooking. access. Accessthat they modern to are able to energy marshal. United Nations. despite relatively abundant (SE4ALL) initiative the resources and support Energy with an electricity connection Elisa Portale is an l Year of Sustainable Energy for To sustain percentage of by the momentum forthe the population achievement of the SE4ALL 2• Energy efficiency. The rate of improvement of energy efficiency hydropower, the share In declaring 2012 the “Internationa energy economist in with access to nonsolid fuels. three global objectives objectives, andathe means of charting percentage of the population global progress to 2030 is needed. is approximated by the compound annual growth rate (CAGR) of renewables in energy All,” the UN General Assembly established the Energy Sector surveys and reported access to modern universalAssistance The World TheseBank and data are the collected International using household Energy Agency led a consor- of energy intensity, where energy intensity is the ratio of total consumption has remained to be accomplished by 2030: to ensure Management Database and the World of theenergy intium of 15 renewable international in the World Bank’s Global agencies toElectrification establish the SE4ALL Global primary energy consumption to gross domestic product (GDP) energy the 2010 share of Program (ESMAP) relatively low. very high energy services, to double Database. measured in purchasing power parity (PPP) terms. Data used to 1 t ’s Household provides Energy a system for regular World Bank’s Energy the global rate of improvemen and Extractives Tracking Framework Health (GTF), which Organization in the energy intensity levels have come and to double the global energy mix, Global Practice. (SE4ALL 2012). based on energy. of renewable The sharepractical, rigorous—yet energy given available calculate energy intensity are obtained from energy balances to the period 1990–2010 global reporting, Renewable down rapidly. The big questions in energy efficiency relative setting by the percentage of total final energy consumption published by the International Energy Agency and the United evolve Joeri withde Wit is an countries individual mix is measured Data used to are how renewables will The SE4ALL objectives are global, economist in with the overall from renewable energy when every resources. person on the planet has access Nations. picks up a way energy that is consistent 1 The universal derived that isaccess goal will be achieved balances published when energy demand in from energy their own national targets through electricity, clean cooking fuels, clean heating fuels, rates the Bank’s Energy and countries differ greatly in their ability calculate this indicator are obtained to modern energy services provided productive use and community services. The term “modern solutions” cookingNations. again and whether recent spirit of the initiative. Because Extractives Global rapid progress and energy for Energy Agency and the United liquefied petroleum gas), 2 Solid fuels are defined to include both traditional biomass (wood, charcoal, agricultural will make more by the refers to solutions International that involve electricity or gaseous fuels (including is pellets and briquettes), and of decline in energy intensity some t of those of efficiency energy and forest residues, dung, and so on), processed biomass (such as to pursue the three objectives, Practice. depending on their or solid/liquid fuels paired with Energy efficiency. The rate stoves exhibiting of overall improvemen emissions rates at or near other solid fuels (such as coal and lignite). will excel elsewhere, rate (CAGR) of energy will continue. in one area while others liquefied petroleum gas (www.sustainableenergyforall.org). annual growth as well as on approximated by the compound and comparative advantages is the ratio of total primary energy respective starting points marshal. where energy intensity that they are able to intensity, measured in purchas- the resources and support domestic product (GDP) for the achievement of the SE4ALL consumption to gross calculate energy intensity Elisa Portale is an To sustain momentum terms. Data used to charting global progress to 2030 is needed. ing power parity (PPP) the International energy economist in objectives, a means of balances published by the Energy Sector International Energy Agency led a consor- are obtained from energy The World Bank and the SE4ALL Global Energy Agency and the United Nations. Management Assistance agencies to establish the the GTF to provide a regional and tium of 15 international for regular This note uses data from Program (ESMAP) of the which provides a system for Eastern Tracking Framework (GTF), the three pillars of SE4ALL World Bank’s Energy and Extractives on rigorous—yet practical, given available country perspective on Global Practice. global reporting, based has access Joeri de Wit is an will be achieved when every person on the planet The universal access goal heating fuels, clean cooking fuels, clean energy economist in 1 agricultural provided through electricity, biomass (wood, charcoal, to modern energy services The term “modern cooking solutions” to include both traditional and briquettes), and Solid fuels are defined the Bank’s Energy and use and community services. biomass (such as pellets 2 and energy for productive petroleum gas), and so on), processed fuels (including liquefied and forest residues, dung, involve electricity or gaseous at or near those of Extractives Global refers to solutions that overall emissions rates other solid fuels (such as coal and lignite). with stoves exhibiting Practice. or solid/liquid fuels paired (www.sustainableenergyforall.org). liquefied petroleum gas Contribute to If you can’t spare the time to contribute to Live Wire, but have an idea for a topic, or case we should cover, let us know! Do you have something to say? We welcome your ideas through any of the following Say it in Live Wire! channels: Via the Communities of Those working on the front lines of energy and extractives development in emerging economies Practice in which you are have a wealth of technical knowledge and case experience to share with their colleagues but active seldom have the time to write for publication. By participating in the Energy Live Wire offers prospective authors a support system to make sharing your knowledge as easy as and Extractives Global possible: Practice’s annual Live Wire • Trained writers among our staff will be assigned upon request to draft Live Wire stories with series review meeting staff active in operations. By communicating directly • A professional series editor ensures that the writing is punchy and accessible. with the team (contact • A professional graphic designer assures that the final product looks great—a feather in your cap! Morgan Bazilian, mbazilian@ worldbank.org) Live Wire aims to raise the profile of operational staff wherever they are based; those with hands-on knowledge to share. That’s your payoff! It’s a chance to model good uroPe and cenT ral asia 2014/29 all in easTern e ble energy for “knowledge citizenship” and participate in the ongoing change process at the Bank, v i d i n g s u s Ta i n a ess Toward Pro 1 Tracking Progr where knowledge management is becoming everybody’s business. A KNOWLEDGE NOT E SERIES FOR THE ENERGY & EXTRACT IVES GLOBAL PRAC TICE rgy Providing Sustainable Ene Tracking Progress Toward Or 2014/5 1 U n d e r s ta n d i n g C O 2 emissiOns frOm the glObal energy seCt THE BOTTOM LINE pe and Cen tral Asia for All in Eastern Euro stand where does the region on the quest for sustaina ble based on that frame- measures. This note is databases—technical updated version of energy for all? The region SE4ALL will publish an has near-universal access to WhyD is this important? ERGY PRACTICE work (World Bank 2014). E G E N O T E S E R I E S F O R T H E E N to electricity, and 93 percent of A K N O W L g regiona l trends is critical monitoring the GTF in 2015. data sources that the GTF uses to Trackin The primary indicator s and the population has access s of the Sustain able Energy for All the three SE4ALL goals are summari zed below. the progres track progress toward Understanding CO Emissions from the Global Energy Sector nonsolid fuel for cooking. is measured to modern energy services THE BOTTOM LINE to Your Name Here t (SE4ALL) initiativ e Energy access. Access connection despite relatively abundan 2 population with an electricity ional Year of Sustainab le Energy for by the percentage of the access to nonsolid fuels. 2 hydropower, the share the energy sector contributes In declaring 2012 the “Internat objectives percenta ge of the population with establish ed three global and the and reported about 40 percent of global of renewables in energy All,” the UN General Assembly using household surveys Why is this issue important? access to modern These data are collected 2030: to ensure universal and the World Become an author has remained emissions of CO2. three- consumption to be accomplished by of renewable energy in in the World Bank’s Global Electrification Database high energy knowledge the share of the 2010 . energy requires very relatively low. Mitigating climate change services, to 1 double ld Energy Database quarters of those emissions rate of improvement Organization’s Househo CO2 intensity levels have come and to double the global Figure 1. CO2 emissions Health Figure 2. energy-related The share of renewable energy in the energy come from six major the global energy mix, sources of CO question s2 emissions to the period 1990–201 0 (SE4ALL 2012). by sector Renewab le energy. emissions by country consumption down rapidly. The big economies. although coal-fired in energy efficiency relative countries setting percenta ge of total final energy mix is measured by the of Live Wire and global, with individual LICs evolve les will opportunities to cut emissions of greenhouse aregases used to plants account for just are how renewab Identifying The SE4ALL objectives le energy resources. Data 0.5% picks upunderstanding of the main sources ofin those a way that is consistent with emis- the overall that is derived from renewab energy balances published 40 percent of world energy when energy demand requires a clear their own national targets in their ability are obtained from calculate this indicator Other Carbonrates for more than 80 percent of differ greatly countries Residential production, they were again and whethersions.recent dioxide (CO2) accounts spirit of the initiative. Because 6% sectors progress Other MICs nal Energy Agency and the United Nations. will make more rapid 15% intensity gas emissions globally, 1 primarily from the burning s, some 10% by the Internatio China improvement of energy efficiency is contribute to your responsible for more than of decline in energytotal greenhouse to pursue the three objective on their Other HICs . The rate of energy sector—defined include toexcel elsewhere, depending Energy efficiency 30% growth rate (CAGR) of energy will continue. of fossil fuels (IFCC 2007). The will 8% in one area while others by the compound annual Energy 70 percent of energy-sector as well as on 41% approxim and heat generation—contributed and compara tive advantages 41 ated Japan 4% energy the ratio of total primary Industry emissions in 2010. despite fuels consumed for electricity respective starting points 20% Russia energy intensity is that they are able to marshal. in 2010 (figure 1). Energy-related intensity, where USA product (GDP) measured in purchas- improvements in some percent of global CO2 emissions the resources and support 7% gross domestic practice and career! up the bulk of such ent of the SE4ALL Other consump tion to India 19% intensity is an at the point of combustion make for the achievem calculate energy countries, the global CO2 Elisa 2 emissions COPortale To sustain momentum transport Road 7% EU terms. Data used to andinare generated by the burning of fossil is needed. global progress to 2030 6% transport fuels, industrial ing power parity (PPP) the International economist objectives, a means of charting balances published by emissions 11% emission factor for energy energy 16% EnergyandSector nonrenewable municipal waste to generate nal Energy Agency led electricity Internatio a consor- are obtained from energy The World Bank and the thewaste, generation has hardly changed United Nations. ent Assistance venting and leakage to establish the emissions SE4ALL Global Energy Agency and the sector at the point and over the last 20 years. and heat. Black carbon and methane Managem tium of 15 international agencies Notes: Energy-related CO2 emissions are CO2 emissions from the energy from the GTF to provide a regional of the for regular This note usesanddata domestic Program (ESMAP) are not included in the analysis presented in this rk note. which provides a system (GTF), of combustion. Other Transport includes international marine aviation bunkers, of SE4ALL for Eastern Extractives Tracking Framewo available Other Sectors rail and pipeline transport; perspect ive on the three include pillars commercial/public World Bank’s Energy and given aviation and navigation, country on rigorous—yet practical, services, agriculture/forestry, fishing, energy industries other than electricity and heat genera- Global Practice. global reporting, based elsewhere; Energy = fuels consumed for electricity and Where do emissions come from? tion, and other emissions not specified as has in the opening paragraph. HIC, MIC, and LIC refer to high-, middle-, access Joeri de Wit is an will be achieved when on the planet heat generation, every person defined The universal access goal of countries heating fuels, energy economistare Emissions concentrated in 1 in a handful to modern energy services provided through electricity, fuels, clean and low-income clean cooking countries. cooking solutions” to include both traditional biomass (wood, charcoal, agricultural The term “modern Source: IEA 2012a. Solid fuels are defined and briquettes), and the Bank’s Energy and use and community services. biomass (such as pellets 2 and come primarily from burning and energy coal for productive electricity or gaseous fuels involve (including liquefied petroleum gas), of and forest residues, dung, and so on), processed Vivien Foster is sector Extractives Global refers to solutions that overall emissions rates at or near those other solid fuels (such as coal and lignite). with stoves exhibiting or solid/liquid fuels paired emissions closely manager for the Sus- The geographical pattern of energy-related CO Practice. gas 2 (www.sustainableenergy forall.org). liquefied petroleum middle-income countries, and only 0.5 percent by all low-income tainable Energy Depart- mirrors the distribution of energy consumption (figure 2). In 2010, ment at the World Bank countries put together. almost half of all such emissions were associated with the two (vfoster@worldbank.org). Coal is, by far, the largest source of energy-related CO2 emissions largest global energy consumers, and more than three-quarters globally, accounting for more than 70 percent of the total (figure 3). Daron Bedrosyan were associated with the top six emitting countries. Of the remaining works for London This reflects both the widespread use of coal to generate electrical energy-related CO2 emissions, about 8 percent were contributed Economics in Toronto. power, as well as the exceptionally high CO2 intensity of coal-fired by other high-income countries, another 15 percent by other Previously, he was an power (figure 4). Per unit of energy produced, coal emits significantly energy analyst with the more CO emissions than oil and more than twice as much as natural 2 World Bank’s Energy Practice. Gas Inventory 1 United Nations Framework Convention on Climate Change, Greenhouse 0.php gas. Data—Comparisons By Gas (database). http://unfccc.int/ghg_data/items/380