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Chapter 12 The Economic-Geography of Energy. Introduction Energy in the International Arena: Trade and Geopolitics The National Arena: Location and Spatial Distribution Summary. Key Themes. Location and spatial distribution: type of energy, location of supply and demand
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Chapter 12 The Economic-Geography of Energy • Introduction • Energy in the International Arena: Trade and Geopolitics • The National Arena: Location and Spatial Distribution • Summary
Key Themes • Location and spatial distribution: type of energy, location of supply and demand • Spatial allocation and movement: methods of energy transfer & networks • Futurism: what will be energy resources in the future, and the Malthusian Dragon: how will we adapt to depletion of nonrenewable energy resources?
Energy in the International Arena: Trade and Geopolitics • The key role of energy in economic development • Multiple sources, with varying geographies of production • PETROLEUM: Highly uneven geographic distribution of resources AND a strong correlation between consumption and level of economic development • Growth of global alliances in sectors with uneven development and strong levels of trade: OPEC
Parallels Fig 12.6 Parallels Fig 12.8
Composite Energy Flow U.S. Parallels Figure 12.7
Electricity 2003 Not Secondary Energy in the Pacific Northwest!
U.S. Electrical Energy Sources: More Detail
The Falling Real Price of Electricity
Projected U.S. Energy Consumption Totally Unpredictable
Malthusian Dragons? • Can these extrapolations continue? • The finite supply of petroleum, natural gas, and even coal • Shell’s recent revelations of exaggerated reserves • The hydrogen potential: who would supply? Existing petro-dominant energy companies? New players • The shifting interest in R&D in alternative energy sources with changing geopolitics • Can R&D save us again? What do you think?
Upshot • For most industries, energy costs are a small proportion of production costs • But, they are critical, and intimately related to transportation costs, that do have a significant influence on the global distribution of production • The geography of global economic activity is clearly influenced by energy supplies, costs, technologies, and trading systems