Two visions of the energy future:
- under-invested, vulnerable and dirty, or
- clean, clever and competitive.
Both are explored in this new edition of the authoritative World Energy Outlook.
In it, the International Energy Agency responds to the remit of the G8 world leaders by
mapping a new energy future, contrasting it with where we are now headed. WEO 2006 shows
how to change course. It counts the costs and benefits - and the benefits win.
World Energy Outlook 2006 also answers these questions:
- is the economic reaction to high energy prices merely delayed?
- is oil and gas investment on track?
- are the conditions shaping up for a nuclear energy revival?
- can biofuels erode the oil monopoly in road transport?
- can 2.5 billion people in developing countries switch to modern energy for cooking?
- is Brazil learning new lessons or teaching the world?
With extensive statistics, detailed projections, analysis and advice, WEO 2006 equips
policy makers and the public to re-make the energy future.
Table of Contents
Foreword
Acknowledgements
List of Figures
List of Tables
List of Boxes
Summary and Conclusions
Introduction
Part A: The Reference Scenario
Key Assumptions
Highlights
Government Policies and Measures
Population
Macroeconomic Factors
Energy Prices 59
Technological Developments 63
Global Energy Trends 65
Highlights 65
Demand 66
Primary Energy Mix 66
Regional Trends 68
Sectoral Trends 70
Energy Production and Trade 71
Resources and Production Prospects 71
Inter-Regional Trade 73
Investment in Energy Infrastructure 75
Energy-Related CO2 Emissions 78
Oil Market Outlook 85
Highlights 85
Demand 86
Supply 88
Resources and Reserves 88
Production 91
Trade 100
Investment 102
Implications of Deferred Upstream Investment 107
Gas Market Outlook 111
Highlights 111
Demand 112
Supply 114
Resources and Reserves 114
Production 115
Inter-Regional Trade 117
Investment 121
Coal Market Outlook 125
Highlights 125
Demand 126
Reserves and Production 127
Inter-Regional Trade 131
Coal Supply Costs and Investment 133
Power Sector Outlook 137
Highlights 137
Electricity Demand Outlook 138
Power Generation Outlook 139
Energy-Related CO2 Emissions from Power Generation 144
The Economics of New Power Plants 145
Capacity Requirements and Investment Outlook 147
Power Generation Investment Trends in the OECD 150
Investment Trends in Developing Countries 153
Part B: The Alternative Policy Scenario 159
Mapping a New Energy Future 161
Highlights 161
Background 162
Why an Alternative Policy Scenario? 162
Methodology 164
Policy Assumptions 165
Energy Prices and Macroeconomic Assumptions 170
Technological Developments 170
Global Energy Trends 173
Primary and Final Energy Mix 173
Energy Intensity 177
Investment and Fuel Expenditures 178
Oil Markets 178
Demand 178
Supply 179
Inter-Regional Trade 181
Gas Markets 182
Demand 182
Production and Trade 183
Coal Markets 184
Demand 184
Production and Trade 186
Energy Security in Importing Countries 186
Energy-Related CO2 Emissions 188
Assessing the Cost-Effectiveness of Alternative Policies 193
Highlights 193
Investment in Energy-Supply Infrastructure
and End-Use Equipment 194
Overview 194
Investment along the Electricity Chain 196
Demand-Side Investment 198
Supply-Side Investment 202
Implications for Energy Import Bills and Export Revenues 203
Implications for Consumers 205
Barriers to Investment in End-Use Energy Efficiency 210
Deepening the Analysis: Results by Sector 213
Highlights 213
Power Generation 214
Summary of Results 214
Electricity Mix 216
Policy Assumptions and Effects 221
Transport 222
Summary of Results 222
Road Transport 224
Policy Assumptions and Effects 224
Aviation 231
Industry 234
Summary of Results 234
Policy Assumptions and Effects 237
Residential and Services Sectors 241
Summary of Results 241
Policy Overview 246
Getting to and Going Beyond the Alternative Policy Scenario 249
Highlights 249
Making the Alternative Policy Scenario a Reality 250
Identifying Policy Priorities 250
Hurdles to Policy Adoption and Implementation 253
Going Beyond the Alternative Policy Scenario 256
Achieving the BAPS Goal 256
Implications for Energy Security 262
Beyond 2030: the Need for a Technology Shift 262
Part C: Focus on Key Topics 267
The Impact of Higher Energy Prices 269
Highlights 269
Introduction 270
Energy Price Trends and Relationships 270
International Prices 270
Final Prices to End Users 275
Quantifying Energy Subsidies 277
Impact of Higher Energy Prices on Demand 282
Energy Demand Trends since Prices Started Rising 282
Responsiveness of Energy Demand to Price Changes 283
Explaining Recent Trends in Energy Demand 289
Price Sensitivity Analysis 295
Macroeconomic Impact of Higher Energy Prices 297
How Higher Energy Prices Affect the Macroeconomy 297
Quantifying the Recent Shift in the Terms of Trade 299
Simulating the Macroeconomic Effects of Higher Energy Prices 301
Explaining Macroeconomic Resilience to Higher Energy Prices 306
Energy Policy Implications 313
Current Trends in Oil and Gas Investment 315
Highlights 315
Overview 316
Exploration and Development 321
Investment Trends 321
Impact of Cost Inflation on Upstream Investment 327
Implications for Oil and Gas Production Capacity 331
Oil Refining 335
Liquefied Natural Gas Facilities 336
Gas-to-Liquids Plants 340
Oil Sands and Extra-Heavy Oil 341
Investment beyond the Current Decade 341
Prospects for Nuclear Power 343
Highlights 343
Current Status of Nuclear Power 344
Renewed Interest in Nuclear Power 344
Nuclear Power Today 346
Historical Development 348
Policy Overview 351
Nuclear Power Generation 351
Nuclear Fuel and Waste Management 356
Proliferation and International Conventions 357
Outlook for Nuclear Power 360
Reference Scenario 361
Alternative Policy Scenario 361
Nuclear Power Economics in Competitive Markets 364
Generating Costs under Different Discount Rate Assumptions 364
Sensitivity Analysis of Nuclear Power Generating Costs 368
Other Factors Influencing the Generating Cost of Nuclear
Power 371
Financing Nuclear Power Plants 374
Nuclear Fuel Outlook 376
Demand for Uranium 376
Uranium Resources 377
Uranium Production 380
Uranium Prices and Investment in Exploration
and Production 381
Policy Issues 382
The Outlook for Biofuels 385
Highlights 385
Current Status of Biofuels Production and Use 386
Market Overview 386
Ethanol 388
Biodiesel 389
The Environmental Impact of Biofuels 391
Prospects for Biofuels Production and Use 394
Summary of Projections to 2030 394
Regional Trends 400
Key Drivers and Uncertainties 405
Technology and Production Costs 405
Biomass and Land Needs for Biofuels Production 412
International Trade in Biofuels 416
Energy for Cooking in Developing Countries 419
Highlights 419
Household Energy Use in Developing Countries 420
Harmful Effects of Current Cooking Fuels and Technologies 424
Health 424
Environment 427
The Burden of Fuel Collection 428
Outlook for Household Biomass Use in Developing Countries 431
Improving the Way Biomass is Used 433
Modern Cooking Fuels and Stoves 433
Quantifying the Potential Impact of Modern Cooking Fuels and Stoves 435
Policy Implications 440
Focus on Brazil 447
Highlights 447
Overview 448
The Political and Economic Outlook 449
The Political Scene 449
The National Economy 450
Recent Trends and Developments in the Energy Sector 452
Outlook for Energy Demand 454
Reference Scenario 455
Alternative Policy Scenario 462
Outlook for Supply 464
Oil 464
Natural Gas 471
Coal 474
Biomass 474
Power and Heat 479
Environmental Issues 484
Investment 486
ANNEXES 489
Annex A Tables for Reference and Alternative Policy
Scenario Projections 491
Annex B Electricity Access 565
Annex C Abbreviations and Definitions 573
Annex D Acronyms 581
Annex E References 585
Paperback
600 pages +PDF for 1 user