Introduction to the Energy Portfolio
The growing appetite for oil and other energy sources means that worldwide energy consumption is projected to rise by as much as 33 percent from 2000 to 2030 (Demand for Energy). This dramatic growth, coupled with the 60% increase in energy consumption of the past 25 years, creates pressure on energy supplies. While the portfolio of available energy sources varies from country to country, the global energy mix has historically been dominated by coal, oil, and natural gas. As economies and populations around the world continue to grow, a more diverse portfolio of energy supplies will be needed to support and sustain economic activity. While coal, oil, and natural gas will remain indispensable to meeting total projected energy demand growth, development of all economically feasible energy sources will be needed to ensure a reliable and secure energy future.
The question of how we will meet future world energy demand, particularly in light of increasing constraints on carbon emissions, is complex. The answer will require us to grow and diversify the global energy portfolio in a way that addresses economic, environmental, security, geopolitical and social, technological and investment challenges.
Energy Supply Background
In order to meet growing global energy demand, energy supplies will need to increase. This increase will necessitate solutions that address both physical constraints – where supplies will come from and how they will be provided to the world market – and environmental constraints – how these supplies will be produced and used in a way that is consistent with frameworks on carbon emissions management. Given uncertainty about geopolitics and access to reserves, technological advancements, security of supplies, investment timing, and infrastructure development, there is consensus that the world’s energy mix needs to become more diversified in order to support continued growth. Elements of this diversification, including supplies from fossil fuels, alternatives and renewables, are explored in this section.
Energy Demand and Use Background: Conservation and Efficiency to Extend the Supply of Energy
Conservation – the reduction in overall demand for energy – and efficiency – the reduction of energy consumption per unit of output – are the most economical sources of new energy. Improved efficiency and conservation can be attained within all the major categories of energy demand: households, transportation, industry, and commercial buildings.
Currently, there are opportunities for both individuals and industries to use energy more efficiently and thus conserve the energy supplies that we have. Individual consumers of energy tend to lack the information (such as information on how much energy they are using in their daily lives or how much it costs). Consumers also do not always have access to the technology (such as EnergyStar appliances or fuel efficient vehicles) that they need to be more efficient. Similarly, businesses do not always have the means to invest in more efficient technology, even if they would achieve cost savings in the future.
Many businesses and individuals are making changes to gain efficiency improvements; a wide array of technologies that can be used to implement economical energy-saving upgrades already exist. Individual consumers are investing in fuel efficient vehicles, as evidenced until fuel prices dropped dramatically by higher sales of small, fuel efficient vehicles, and many are making changes to their lifestyles like carpooling and turning off the lights to reduce their energy consumption. Visit Chevron’s Energy Generator to see what actions you can take to be more energy efficient. A more detailed overview of the role conservation and efficiency can play as a climate change solution can be found in the Climate Change section.