Proposal for definitions

1. Proposal for definitions Atle Tostensen Senior Adviser, Statistics Norway 3rd OCG meeting, Vienna, 4 February 2008

2. Energy statistics • Energy statistics “Energy statistics is used as an umbrella term for all the different ways of producing and presenting data and statistics on flows of energy. This includes basic energy statistics, energy supply and use and all standard tabulations.” • Based on the understanding in the UN manuals (1982, 1987 and 1991), IEA/Eurostat energy statistics manual (2005) and the OCG mandate.

3. Basic energy statistics • Basic energy statistics “Basic energy statistics are statistics on production, imports and exports, stock changes, input for transformation into another energy source, non-energy use, transport and final energy consumption of primary and secondary energy sources or commodities.” • Energy Supply and Use (ESU) In order to go from basic energy statistics to a setup of the total supply and use of energy in a country (or another area), it is necessary to combine the basic energy statistics in one system of energy supply and use. The aim is to creates a multipurpose system for energy statistics which makes it possible to generate user reports based on user needs. (must be specified after ESU-chapter is finished)

4. Energy • Energy “Energy means the capacity for doing work or for producing heat; energy can be regarded as “stored work”. The heat produced may be so intense as to emit light. Heat, light, motive force and chemical change induced by, or resulting in, electricity cover sufficiently for the present purpose the range of manifestation of “energy””. (From the old UN manuals)

5. Primary and secondary energy • UN: “Primary energy should be used to designate those sources that only involve extraction or capture, with or without separation from contiguous material, cleaning or grading, before the energy embodied in that source can be converted into heat or mechanical work. Secondary energy should be used to designate all sources of energy that results from transformation of primary sources. Fuel, alone, should be used only when describing those energy sources, whether primary or secondary, that must be subject to combustion or fission in order to release for use the energy stored up inside them.” • IEA/Eurostat Energy statistics manual: “Energy commodities are either extracted or captured directly from natural resources (and are termed primary) such as crude oil, hard coal, natural gas, or are produced from primary commodities. All energy commodities which are not primary but produced from primary commodities are termed secondary commodities. Secondary energy comes from the transformation of primary or secondary energy.” • Proposal: UN definition

6. Primary and secondary energy • According to the definitions above, we can expect electricity to be a secondary form of energy, or energy commodity. • Energy Statistics Manual introduces another term: non-thermal electricity. This refers to: “[…] the energy obtained from devices driven mechanically by air or water (wind, hydro, wave, tidal etc.). In almost all cases the mechanical force present in the moving parts of the apparatus is used to generate electricity (there are of course a few exceptions such as pumping water from wind mills).”

7. Primary and secondary energy • Several measurement problems related to the primary energy in non-thermal electricity production. • No other outlet for the mechanical power before it is used for electricity generation. • We propose that the primary energy in these cases should not be recorded. It is, however, important to record the source of the non-thermal electricity produced. • Proposing for instance to set the primary energy equal to the production of electricity (secondary) in these non-thermal cases, which is the alternative, will give no added value.

8. Primary and secondary energy

9. Stocks vs. resources/reserves • Refers to stocks as storage of produced products such as for instance petroleum products (energy community) • The national accounts system refers to this as inventories, and to them “stocks” are reserves/assets/resources that have not yet been produced, but can be produced in the future. • Proposal: ”The term stocks will in this manual refer to storage of already produced products, for instance storage of crude oil, petroleum products, natural gas and coal.“

10. Stocks vs. resources/reserves • Resources/reserves of energy refers to the potential energy sources such as hard coal, lignite, peat, crude oil, natural gas liquids, oil shale, bituminous sands, raw natural gas, uranium, falling water, woody biomass, non-woody vegetable biomass and animal waste. • Generally, reserves are a subset of resources and refer to the economically exploitable part of resources at a given point in time. • Should be distinguished from stocks. • Resources/reserves are not part of energy statistics.

11. Stocks vs. resources/reserves - Questions • Where is the borderline between reserves and stocks? Can we talk about “above ground and underground”, or is production the borderline? • Does stocks have to be commercially marketable? Can for instance low quality coal that is not marketable at the time of production be considered stock, or is this pure waste even if it may become marketable in the future? • How is storage of natural gas treated related to stocks. This is gas produced and then reinjected into a reservoir for storage until it is needed.