Developing an environmental strategy for UK film - BFI

Resource Use: Fossil Fuels
The world’s fuel and energy is largely supplied by fossil fuels such as oil, gas and coal, all of
which are non-renewable resources that are rapidly diminishing.
The International Energy Agency’s (IEA) “business as usual” forecast for global energy use
between 2004 and 2030 includes:
• Fossil fuels will remain the dominant source of energy worldwide, meeting 83% of the
increase in energy demand;
• Emissions from power generation will account for 44% of global energy-related
emissions by 2030, as demand for electricity rises;
• Coal will provide the largest incremental source of power generation, with the majority of
this increase likely to be in China (55%);
• Over 70% of the increase in global primary energy demand will come from developing
countries, reflecting rapid economic and population growth;
• Global primary energy demand will rise by 53%, leading to a 55% increase in global
carbon dioxide emissions related to energy; and,
• Some $20 trillion of investment will be needed throughout the energy supply chain.
Oil: World demand for oil has grown faster in the past five years than in the second half of the
1990s. During 2002, 79 million barrels of oil were consumed per day; today 85 million barrels
are consumed, estimates suggest this will rise to 113 million barrels a day by 2030. Most of the
world’s oil reserves are found in the Middle East. Proven oil and gas reserves are equivalent to
around 41 and 65 years at current production levels respectively 16 .
However, the Independent reported in June 2007 that oil will run out faster than expected, with
the global production of oil set to peak in the next four years 17 . After a peak, oil production will
enter a steep decline. As oil decreases, costs increase. A 10-15% reduction in oil supply causes
significant price increases which could severely affect industrial economies. In the 1970s, a
reduction of 5% caused a price increase of more than 400%. If consumption begins to exceed
production by even the smallest amount, the price of oil may reach $100 a barrel, which, it is
thought would be followed by a global recession 18 .
Crude oil is a mixture of many chemical compounds of carbon and hydrogen (hydrocarbons); the
different hydrocarbons are separated in an oil refinery. Hydrocarbons are a major source of
energy and are a raw material (or form the oil-based substances) for many products 19 (Table 3).
Nearly everything in our lives is made from oil, either made by machinery and systems dependent
on oil or transported by oil as either gas or fuel.
16 http://www.worldcoal.org/pages/content/index.asp?PageID=188
17 Britains oil reserves peaked during 1999
18 http://news.independent.co.uk/sci_tech/article2656034.ece
19 The construction of a single car in the US requires, on average, at least 20 barrels of oil.
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