👪 Population growth
More people need more energy for cooking, heating, lighting, transport and food. Every extra person adds to demand.
Energy Supply and Demand » Rising Energy Demand and Energy Security
What you'll learn this session
Study time: 30 minutes
Cambridge spec: 10.5.1, 10.5.2
- Why the world makes and uses more energy every decade
- Which countries have an energy surplus and which have a deficit
- What energy security means
- Why energy security matters to countries and people
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Unlock This CourseWhy the world is using more energy
Global production and consumption of energy, how much is made and how much is used, keep rising. Both have grown because demand has grown and because new reserves and technology have made more energy available. There are several reasons for the rise.
Reasons for rising demand
🏭 Economic development and industrialisation
Factories, mines and power-hungry industries use huge amounts of energy. Much of the fastest growth has been in Asia, where large economies have industrialised quickly.
💰 Rising incomes
As people earn more, they buy cars, fridges, air conditioners, televisions and phones. Car and appliance ownership means more fuel and more electricity.
🏙 Urbanisation
City life uses more energy than village life. Cities have more electricity, more vehicles, more tall buildings and more shops and offices that need lighting and cooling.
💻 Technology and data centres
Phones, streaming, online shopping and cloud storage run through data centres. These are huge buildings full of computers that use electricity day and night, and more electricity to keep them cool.
⛽ More energy available
New reserves of oil and gas have been found, and new technology can reach energy that was once out of reach. This means more energy can be produced, so more is available to be used.
Most of these reasons push demand up because people want more. The last one lets supply rise to meet that demand. Together they explain why production and consumption have grown side by side.
Worked example: linking reasons
A family moves from a village to a flat in a fast-growing Asian city. They now own a fridge, a television and an air conditioner. Link the reasons: urbanisation (moving to the city), rising incomes (they can afford appliances) and appliance ownership (each one uses electricity). Multiply this by millions of families and demand rises sharply.
Energy surplus and energy deficit
Energy is not spread evenly. Some countries have plenty of coal, oil or gas under their land. Others have very little.
- Energy surplus: a country produces more energy than it uses. It can export the extra.
- Energy deficit: a country uses more energy than it produces. It must import the rest.
| Pattern | Examples | Why |
|---|---|---|
| Surplus | Saudi Arabia, Russia, Norway | Large oil and gas reserves, so they produce more than they use and export energy. |
| Deficit | Japan, much of Europe | Few fossil fuel reserves for the size of their economies, so they import large amounts of oil, gas and coal. |
Producers are often far from the biggest users, so energy moves around the world in tankers and pipelines. A surplus is not about being rich or poor. It is only about producing more than you use.
To find the balance, work out energy produced minus energy used. A positive answer is a surplus and a negative answer is a deficit. For example, a country that produces 100 units and uses 60 units has a surplus of 40 units.
Energy security
Energy security means having a reliable, affordable supply of energy to meet a country's needs, now and in the future. A country with high energy security is not easily cut off or priced out of the energy it needs.
Energy security matters because of:
- Prices: if supply is short, prices rise. Families pay more to heat homes and run cars, and businesses pay more to make goods.
- Supply disruption: a broken pipeline, a storm, a strike or a shortage can cut supplies. Power cuts affect hospitals, homes and factories.
- Conflict: energy can cause tension between countries, and war can cut supplies. After 2022, many European countries lost much of their gas supply from Russia and had to find new sources.
- Dependence on imports: a country that imports most of its energy depends on other countries. Japan imports nearly all its oil and gas, so it must keep its supply routes safe.
- Energy poverty: when people cannot afford enough energy to cook, keep warm or have light. Some people have no access to energy at all: more than 700 million people in the world still have no electricity, mostly in sub-Saharan Africa.
Common mistakes
Saying a surplus country is "rich" or a deficit country is "poor". Surplus and deficit are only about production compared with use. Another mistake is saying energy security means having lots of energy. It means a supply that is reliable and affordable. Also, do not write "everyone needs more energy" as a reason: name the specific cause, such as urbanisation or rising incomes.
Exam-style question
Fig. 1.1 shows energy production and consumption in two countries. The data is made up.
| Country | Energy produced (units) | Energy used (units) |
|---|---|---|
| A | 120 | 80 |
| B | 30 | 90 |
(a) Calculate the energy surplus or deficit of Country B. [2 marks]
(b) Define the term energy security. [2 marks]
(c) Give two reasons why global energy consumption is increasing. [2 marks]
(d) Explain why energy security matters to a country like Country B. [6 marks]
Model answer
(a) 30 - 90 (1) = a deficit of 60 units (1).
(b) Having a reliable (1) and affordable supply of energy to meet a country's needs (1).
(c) Any two from: population growth (1); industrialisation or economic development (1); rising incomes and more cars and appliances (1); urbanisation (1); data centres and technology (1).
(d) Level 3 (5-6 marks): Clear explanation of at least three linked reasons, applied to Country B's deficit. Level 2 (3-4 marks): Two reasons explained, or several stated without explanation. Level 1 (1-2 marks): A simple statement only.
Example full-mark answer: Country B uses three times as much energy as it produces, so it must import a lot. If world prices rise, it has to pay more, so homes and businesses spend more on energy. If supplies are disrupted by conflict or a broken pipeline, it could face power cuts, because it has no large home supply to fall back on. Dependence on imports also makes it reliant on the exporting countries, so a disagreement could be dangerous. Finally, poorer families may not be able to afford higher prices, which causes energy poverty. This is why energy security matters.
Exam tip
For "Calculate", show the sum. Writing 30 - 90 earns a mark even if the final answer is wrong. Also say "deficit", not just "-60".