Australia Yearbook - 2001

700 Year Book Australia 2001
Energy supply and use
Energy use in Australia is driven by demand; as
discussed in Energy resources, it is not currently
limited by supply. Demand is driven by the
energy requirements of the various sectors of the
Australian economy, including the export of fuels.
As these sectors have grown, along with the
Australian population, the consumption of energy
has increased. However, as per capita figures
demonstrate, consumption has increased at a
greater rate than the population. This can be
broadly attributed to increases in the standard of
living; economic growth; and changes in the
structure of the population. For the last three
decades household formation has occurred at a
faster rate than population growth. Between 1971
and 1996 the population of Australia increased by
40%, from 12.8 million to 19.9 million. However,
over the same period the number of households
increased by 74%, from 3.7 million to 6.4 million.
This shift in structure has probably had a
significant impact on energy consumption since
households are one of the main units of
consumption.
The biggest consumer of the energy produced in
Australia is the export sector (graph 18.12). In
1997–98, of the 12,171 PJ of energy resources
produced, 8,857 PJ, or 73%, were exported. These
energy resources were mainly in the form of
black coal and uranium. The export of coal,
petroleum, gas and uranium earned Australia
$15,700m in 1997–98, representing 18% of the
value of all exports in that year. In comparison,
$4,362m was spent on energy imports, mainly
crude oil and petroleum products. Over the
period 1978 to 1998 the total energy value (PJ) of
black coal exported tripled, while the energy
value of black coal consumed in Australia
increased by 61%. The proportion of domestic
black coal production exported rose from 58% in
1978–79 to 78% in 1997–98.
Table 18.13 shows estimates of energy use in
Australia. These comprise estimates of the energy
value of fuels sold overseas (exports); conversion
losses, which are primarily heat losses sustained
when converting from primary energy to
secondary energy (e.g. from coal to electricity or
crude oil to petroleum); and industry and
residential energy use (the energy used by
industries in the process of producing a product
or service, and used by households).
Electricity generation was the largest consumer
(1,272 PJ) of total primary energy supply in
1997–98, most of it lost as heat (the average
efficiency of large thermal electricity generation
plants is around 32%). The transport sector (road,
rail, air and water combined) consumed 1,202 PJ,
and manufacturing industries 989 PJ, making
them the second and third largest energy
consuming sectors respectively. Combined, these
three sectors consumed 72% of Australia’s total
domestic energy supply. Energy consumption by
the electricity generation industry increased by
107% between 1977–78 and 1997–98, reflecting
rapid growth in some end use sectors in which
electricity is a prime energy source, such as the
commercial sector. Mining also experienced a
large increase in energy end use, 263% between
1977–78 and 1997–98 (ABARE 1999).
18.12 ENERGY RESOURCE EXPORTS, Proportion by Energy Commodity—1997–98
Black coal
Uranium
Crude oil
Natural gas
Petroleum products
0 10 20 30 40 50 60
%
Source: Australian Energy: Market Developments and Projections to 2014–15 (ABARE).