Production and consumption of energy, energy balance and energy account

Energy balance posts

Energy products - All products used for the production, conversion and use of energy in the economy (including households). Energy products are used for energy purposes and non-energy purposes (eg natural gas as raw material in the production of chemical raw materials and lubricants). Exceptions are renewable products such as biomass and waste not used for energy purposes.

Primary energy products - products extracted directly from natural resources such as crude oil, natural gas and coal.

Secondary energy products - products that are produced by transformation of other energy fuels or energy, such as petrol produced from crude oil.

Primary production is the capture or extraction of fuels or energy from natural energy flows, the biosphere and natural reserves of fossil fuels within the national territory in a form suitable for use. This applies, for example, to coal, wood, crude oil and natural gas.

Production of secondary energy products - production of energy products with product input of other energy products, either primary or secondary. These are, for example, petroleum products that are produced from crude oil in the oil refineries or district heating produced by the incineration of waste.

Imports of energy products comprise all fuel and other energy products entering the national territory.

Exports of energy products comprise all fuel and other energy products leaving the national territory.

Stock changes - the increase (stock build) or decrease (stock draw) in the quantity of stocks over the reporting period and thus are calculated as a difference between the closing and opening stocks. Calculated as the difference between inventory at the end of the year for two periods (+ = decrease, - = increase).

Bunkers - a term in energy balance that includes amounts of fuel delivered to international ships and aviation regardless of nationality for consumption during international voyages transporting goods or passengers.

Transformation is the process where the movement of part or all of the energy content of an energy product entering a process to one or more different energy products leaving the process (e.g., coking coal to coke, crude oil to petroleum products, and heavy fuel oil to electricity).

Energy sector - mainly industries that use fuels and energy for the direct support of the production, and preparation for use, of fuels and energy, except heat not sold. In EB, this includes crude oil and natural gas extraction, coal extraction, as well as consumption in oil refineries, hydropower plants, thermal power plants, combined heat and power plants and district heating plants.

Own consumption in the energy producing sector - a term in energy balance that includes all consumption of energy products in the energy producing sector, excluding transformation input (energy products used in transformation processes for other energy products).

Final consumption - all domestic energy consumption excluding consumption in the energy producing sector.

Final consumption for energy use - Energy products used for production, light, heating, transport and as a reducing agent in industry.

Reduction agent - some coal, coke and charcoal are used as a reduction agent in the production of metals and chemical raw materials. This consumption is considered as part of energy products used for energy purposes in EB.

Non-energy use - energy products used as a product input in the production of goods. This mainly involves the efforts of petroleum products in the production of chemical raw materials, natural gas used in methanol production and petrol coke used in the production of, for example, coal electrodes.

Transport - in EB, this item includes energy products used for the transport of goods or persons within Norwegian territory irrespective of the industry in which the transport occurs. This post includes the categories road transport, rail transport, air transport, coastal transport and other transport.

Statistical error - the difference between the total energy supply and final energy consumption.

Energy account posts

Energy carriers

Sources of energy are called energy bearers. The units used to measure energy bearers are consistent with those normally used in the primary statistics. Coal, coke, crude oil and petroleum products are measured in tonnes, natural gas in standard cubic metres (Sm3), fuel wood, black liquor and waste and other gases in tonnes of oil equivalents (toe) and electric power and district heating in GWh. The energy bearers included in the energy statistics are specified below:

Coal: Anthracite, hard coal and brown coal

Coke: Coal coke and petrol coke

Biofuel: Fuel wood, pellets, briquettes, wood waste, wood chippings, sawdust, shavings, bark, black liquor, biodiesels, bioethanol and charcoal

Garbage/waste: Different types of garbage/waste

Crude oil: Crude oil

Petrol: Naphtha, auto petrol, extraction petrol and aviation fuel

Kerosene: Kerosene type jet fuel, heating kerosene and other kerosene

Middle distillates: Auto diesel, marine gas oil, light heating oils and heavy distillate

Heavy oil: Heavy fuel oils

Waste oil: Waste oil, paint and varnish

Liquefied gases: LPG (propane and butane) and NGL (propane, butane and ethane)

Natural gas: Natural gas in gaseous form and LNG (liquefied natural gas)

Other gases: Refinery gas, fuel gas, methane and CO gas

Electricity: Priority and non-priority power

District heating: Hot water and steam distributed via a district-heating network

Energy content, density and fuel efficiency

1 The theoretical energy content of a particular energy commodity may vary. The figures therefore indicate mean values.

2 Sm 3 = standard cubic metre (15 °C og 1 atmospheric pressure). Net Calorific Value (NCV).

Source: Energy statistics, Statistic Norway, Norwegian Petroleum Industry Association (NP), Norwegian Association of Energy Users and Suppliers, Norwegian Building Research Institute.

Energy units

1 Mtoe = 1 million tonnes (crude) oil equivalents

1 Mbarrels = 1 million barrels crude oil (1 barrel = 0.159 m3)

1 MSm3 o.e. oil = 1 million Sm3 oil

1 MSm3 o.e. gas = 1 billion Sm3 natural gas

1 quad = 1015 Btu (British thermal units)

1 joule (J) = 1 watt x 1 second

Source: Energy statistics, Statistics Norway and Norwegian Petroleum Directorate.

Commonly used prefixes

Production

In the energy sources balance sheet/energy balance sheet, energy production is divided into primary and derived energy bearers. Primary energy bearers include those that are produced without the input of other energy bearing raw materials. The primary energy bearers are coal, fuel wood, crude oil, naphtha, NGL and natural gas. The production of derived energy bearers includes the production of energy bearers in which other energy bearers are used as input, for example, petroleum products manufactured from crude oil in oil refineries or district heating produced through the combustion of waste.

Electricity is treated as primary production in the energy accounts and as derived production in the energy sources balance sheet. The opposite is true of fuel wood. The production of derived energy bearers outside the conversion sectors, for example the production of fuel wood and fuel gas is included in the energy accounts under 'other supply'. The energy accounts define the sectors that produce primary energy bearers as 'extraction sectors' and those that produce derived energy bearers as 'conversion sectors'. Together, the extraction and conversion sectors are referred to as 'energy sectors'. The extraction sectors include coal mining and the production of crude oil, natural gas and hydroelectric power. The conversion sectors include oil refineries, thermal power stations, district heating plants and dual-purpose power stations.

Input of intermediate goods

In the energy sources balance sheet, energy converted (item 8) represents the volume of energy bearers used as input in the production of derived energy bearers. This item includes inter alia the crude oil that goes to the refineries. The energy sector consumption not used to produce other energy bearers, but used for heating, etc, is entered under consumption by the energy sectors (item 9). In the energy accounts, all input, including input to conversion and input to heating, are entered under 'energy sector inputs'.

Raw materials

The term 'raw material' refers to energy bearers that are not used for energy. This mainly comprises input of petroleum products used to manufacture chemical raw materials. For coal and coke, it is difficult to distinguish between raw material consumption and energy consumption. Accordingly, both the energy accounts and the energy sources balance sheet consider all industrial consumption of coal and coke as energy consumption. Raw material consumption of other energy bearers are separated in the energy sources balance sheet (item 10), but distributed by industry and fuel consumption in the energy accounts.

Consumption outside energy sectors

The consumption outside the energy sectors, net domestic consumption in the energy sources balance sheet (item 13), of coal, fuel wood, electricity and district heating is the same in both systems. There is a deviation in the consumption of LPG because the consumption of raw materials is included in the energy accounts. The consumption of gasoline, kerosene, middle distillates and heavy oil deviates because of different ways of treating international shipping, aviation and raw materials. The consumption of coal for the production of CO gas is included in energy converted in the energy sources balance sheet, while it is included in consumption outside the energy sectors in the energy accounts.

Transportation

The energy sources balance sheet has a separate item for energy consumed for transportation purposes (item 15). This means that the transport sector/item includes not only energy consumed by transport companies, but also consumption for transport purposes in other enterprises, including industries and households. The energy accounts place the consumption of all energy under the relevant consumer sector, regardless of whether the consumption refers to transportation, heating or processing. This leads to different ways of recording the transport oil, gasoline, kerosene type jet fuel, auto diesel, marine gas oil and heavy fuel oil. Aviation is treated differently in the two systems, as Norwegian transport companies' acquisitions abroad are included and purchases by foreign transport companies in Norway are deducted from the energy accounts. Military consumption of kerosene type jet fuel is entered under public administration, not under aviation.

International shipping

Regardless of a vessel's nationality, energy bearers supplied by Norwegian ports to vessels in international shipping are categorised as bunkering in the energy sources balance sheet and not included in the total consumption (item 4). International shipping is considered a separate transport sector in the energy accounts, so consumption is recorded under the item 'consumption outside the energy sectors'. The energy accounts also include Norwegian vessels' consumption of energy abroad. International shipping both buys and uses most of its fuel abroad. Correspondingly, the energy sources that foreign vessels buy directly in Norway are deducted.

Common energy unit for the energy accounts and the energy sources balance sheet

Both the energy accounts and the energy sources balance sheet are presented in two different types of units: in physical units (tonnes, GWh etc) and in a common energy unit, petajoule (PJ). Presented in PJ, the energy sources balance sheet is referred to as the energy balance sheet. The figures in PJ are calculated on basis of the figures measured in physical units, using factors for the theoretical energy content for each commodity. From 2006, some new tables are published, with all commodities presented in GWh.

The layout of the energy balance sheet differs from the layout of the energy sources balance sheet on several points: In the energy balance sheet, there is a column showing the total for all the energy commodities. There is also a column for waterfall energy, showing the primary stage for electricity produced by the hydroelectric power plants.

Item 1.2. 'Production of derived energy bearers' has been moved to avoid double entries in the total column on the supply side.

Item 7. 'Net domestic supply' shows the consumption of energy before the transformation processes begin. This level of measurement includes the production of primary energy bearers adjusted for imports, exports/bunkering and changes in stock. For example, crude oil is included in this calculation. To avoid double entries, the consumption of individual petroleum products derived from crude oil has not been included.

Item 13. 'Net domestic consumption' shows the theoretical energy content of bearers delivered for end use - the energy supply. Thus the values at this level of measurement have a degree of efficiency utilisation of 100 per cent for all energy bearers on end consumption. Of course, in practice, this would be impossible. The loss of efficiency that occurs when the energy bearers are used to produce heat, run motors, etc is not taken into account. Take a furnace, for example: Some of the theoretical energy content will not reach the consumer as heat, because a furnace is not 100 per cent efficient. Chapter 6 in NOS Energy Statistics 2000 (see link below) contains a table showing the consumption of utilised energy. The consumption is calculated on the basis of figures from the energy balance, and the estimated thermal efficiency coefficient of different energy sources (see separate table).

In international statistics, the expression 'Total primary energy supply' (TPES) is used. TPES = Total primary production + imports - exports - bunkering - changes in stocks.

The structure of the energy accounts in PJ differs only slightly from the energy accounts expressed in physical units.

Coal: Anthracite, hard coal and brown coal

Coke: Coal coke and petrol coke

Biofuel: Fuel wood, pellets, briquettes, wood waste, wood chippings, sawdust, shavings, bark, black liquor, biodiesels, bioethanol and charcoal

Garbage/waste: Different types of garbage/waste

Crude oil: Crude oil

Petrol: Naphtha, auto petrol, extraction petrol and aviation fuel

Kerosene: Kerosene type jet fuel, heating kerosene and other kerosene

Middle distillates: Auto diesel, marine gas oil, light heating oils and heavy distillate

Heavy oil: Heavy fuel oils

Waste oil: Waste oil, paint and varnish

Liquefied gases: LPG (propane and butane) and NGL (propane, butane and ethane)

Natural gas: Natural gas in gaseous form and LNG (liquefied natural gas)

Other gases: Refinery gas, fuel gas, methane and CO gas

Electricity: Priority and non-priority power

District heating: Hot water and steam distributed via a district-heating netwo