Energy Players
Geography: Edexcel A Level, topic 8.2.3
Energy Players
The energy players are different groups of people, users and suppliers who are involved in the consumption and production of energy resources.
Consumers
- Consumers create a demand for electrical energy and for primary energy of a particular resource e.g. oil.
- There is some consumer control over the energy they consume (e.g. installing solar panels to reduce home energy costs and purchasing electric cars to be less dependent on oil).
- Protests against nuclear energy and fracking in the UK impact whether and where these fuels can be sourced.
Governments
- Governments are required to meet international obligations in terms of reducing CO2 emissions, whilst securing current and future energy supplies.
- Governments can regulate private companies and set environmental priorities.
TNCs
- TNCs (transnational corporations) locate, extract and distribute energy resources
- E.g. BP (UK), Shell (UK and the Netherlands), Petrobras (Brazil) and Reliance (India).
- TNCs invest in and develop their own supply lines and distribution network. This can include processing of the raw resource and the production of electricity that is required.
- TNCs will respond to the market to ensure profits and their stakeholders remain secure.
OPEC
- The Organisation of Petroleum Exporting Countries (OPEC) is a permanent inter-governmental organisation whose member nations produce and export oil.
- It is a crucial part of economic and social development for countries where oil is the largest export (e.g. Saudi Arabia).
- 81% of oil reserves are found in OPEC nations.
- OPEC aims to ensure a steady income for producers, fair returns for investors and a regular sufficient supply for consumers.
Test yourself on Energy Players
How much of the world's oil reserves are found in OPEC nations?
What does OPEC stand for?