Primary Energy System Chain Security Under the Energy Transition

Abstract

AbstractThis paper examines the energy transition consequences on the oil and gas energy system chain as it propagates from net importing through the transit to the net exporting countries (or regions). The fundamental energy system security concerns of importing, transit, and exporting regions are analyzed under the low carbon energy transition dynamics. The analysis is evidence-based on diversification of energy sources, energy supply and demand evolution, and energy demand management development. The analysis results imply that the energy system is going through technological and logistical reallocation of primary energy. The manifestation of such reallocation includes an increase in electrification, the rise of energy carrier options, and clean technologies. Under healthy and normal global economic growth, the reallocation mentioned above would have a mild effect on curbing the oil and gas primary energy demands growth. A case study concerning electric vehicles, which is part of the energy transition aspect, is presented to assess its impact on the energy system, precisely on the fossil fuel demand. Results show that electric vehicles are indirectly fueled, mainly from fossil-fired power stations through electric grids. Moreover, oil byproducts use in the electric vehicle industry confirms the reallocation of the energy system components' roles.The paper's contribution to the literature is the portrayal of the energy system security state under the low carbon energy transition. The significance of this representation is to shed light on the concerns of the net exporting, transit, and net importing regions under such evolution. Subsequently, it facilitates the development of measures toward mitigating world tensions and conflicts, enhancing the global socio-economic wellbeing, and preventing corruption.