MAIN FINDINGS

Supply of Energy
Use of Energy
Energy Intensity
Energy Indicators
Energy Assets
Further Information

INTRODUCTION

The Energy Account Australia (EAA) provides statistics to monitor changes over time in the supply and use of energy within Australia, both from an economic and an environmental perspective. The EAA forms part of a suite of environmental-economic accounts being developed for Australia.

The energy data contained in this publication are produced in accordance with the principles outlined in the System of Environmental-Economic Accounting for Energy (SEEA-E), using a supply-use framework.

The diagram below presents an overview of key data and details the scope of the EAA by showing the supply and use system of energy by components through the economy. Further detail on supply and use frameworks is contained in the Explanatory Notes.


The data on physical supply and use of energy products are primarily derived from the Bureau of Resource and Energy Economics’ (BREE) Australian Energy Statistics (AES) - 2013. ABS uses the SEEA-E to transform AES into a framework consistent with the System of National Accounts (SNA), enabling linkages between energy supply, energy use and the Australian National Accounts. A more detailed description of the data sources and processes used to develop the EAA is contained in the Explanatory Notes.


SUPPLY OF ENERGY

Overview

The energy supply tables present data on the supply of energy products for each year from 2008-09 to 2011-12. Net supply consists of energy products as they enter the economy, either by direct extraction (e.g. mining production) or as imports.

Australia’s total net supply was 19,706 PJ in 2011-12, an increase of 4% from the previous year. Of total net supply the majority was produced domestically (90%), and the remainder was imported (10%). Of the domestic share, production rose 5% from the previous year. The main driver for this was an increase in the production of black coal, which rose by 457 PJ or 5%.

The Mining industry was the main contributor (94% or 16,652 PJ) of domestic energy production (i.e. extraction of fossil fuels and uranium). Relative shares of net energy supply by industries and imports remained fairly constant during this period. In line with SEEA recommendations, household extraction of energy, although shown separately, has been included in the totals of relevant industries.


Significant findings




Black coal accounts for 55% of domestic production and the increase in black coal production was reflected in the black coal exports, which increased by 464 PJ, or 6%. There was a decrease in crude oil and refinery feedstock production of 34 PJ, or 3%. Imports of this product also fell in 2011-12 by 106 PJ, or 8%.

Renewable energy extraction, which has been steadily increasing since 2008-09, decreased in 2011-12 by 15 PJ and remains at 2% of total domestic energy production. Solar energy extraction increased by 3 PJ, or 21% and hydro-electricity supply, which fluctuates according to water availability, decreased by 10 PJ, or 16%.

Total imports experienced a small decrease of 2 PJ to 2,034 PJ in 2011-12. The main imports were crude oil and refinery feedstock (1,141 PJ or 56% of all imports, down from 61% in 2010-11) and diesel (433 PJ or 21% of all imports and up from 341 PJ, or 17% in 2010-11). There was an increase in petrol imports in 2011-12 of 35 PJ to 125 PJ and a decrease in other refined fuels and products of 14 PJ to 190 PJ.
USE OF ENERGY

Overview

The energy use tables present data on the use of energy products for 2008-09 to 2011-12. Net use consists of intermediate consumption by industry; final consumption by households; exports; inventory changes and statistical discrepancy; and conversions and losses.

Australia’s domestic energy consumption (i.e. industry, household energy use and government use, excluding exports) was 4,083 PJ in 2011-12, remaining the same as 2010-11. Industry energy use was 2,955 PJ, a decrease of 9 PJ from 2010-11, accounting for 72% of total domestic energy use. Its primary fuel sources were diesel (695 PJ or 24%), natural gas (678 PJ or 23%) and electricity (630 PJ or 21%). Households reported energy use of 1,041 PJ, an increase of 8 PJ from 2010-11, representing a 26% share of total domestic energy use. Government energy use was 86 PJ or 2% of total domestic energy use.

Exports accounted for 14,050 PJ, which was an increase of 5% from 2010-11. Australia’s main exports were black coal (8,516 PJ or 61%), uranium (3,525 PJ or 25%) and natural gas (1,048 PJ or 7%). Net losses and conversions accounted for 2,097 PJ in 2011-12. Losses and conversions occur in the transformation of fossil fuels and organic waste into electricity and biofuels, crude oil into LPG and petroleum products, and coal into coke and coal by-products in steel making.




The main fuels consumed domestically in Australia were diesel (20%), natural gas (20%), electricity (22%) and petrol (16%). The use of diesel increased by 36 PJ or 5% and petrol use increased by 7 PJ or 1%. The consumption of natural gas domestically increased by 6 PJ or 1% while electricity decreased by 14 PJ or 2% from 2010-11.

The Manufacturing industry was the largest user of domestic energy (accounting for 1,078 PJ, or 26%) in 2011-12, a decrease of 34 PJ or 3% from 2010-11. The manufacture of non-ferrous metals accounted for 35% of manufacturing energy use, an increase of 3% from 2010-11. Other major contributors were petroleum and chemical products (26%), food, beverages, textiles (15%) and other manufacturing products (12%).

The Transport industry was the second largest consumer of domestic energy with 600 PJ or 15%, an increase of 13 PJ or 2% on 2010-11. The largest components of transport energy use were 'other refined fuels and products' (47%), which increased by 3%, and diesel (40%) which had a small increase of 1%.

Household energy use accounted for 1,041 PJ or 25% of total domestic energy use, which was the same proportion as 2010-11. The main energy sources were petrol (47%), electricity (20%) and natural gas (15%). Petrol consumption by households increased by 5 PJ and diesel consumption rose by 10 PJ. Household use of natural gas increased by 2% and has increased by this percentage each year since 2008-09.

Government energy use accounted for 86 PJ or 2% of total domestic use. The main energy source was electricity (51%) and diesel (17%).



The export market is the largest destination for Australian energy products, accounting for 14,050 PJ, or 80% of domestic energy extraction. Exports of energy products increased in 2011-12 by 659 PJ, or 5% compared to 2010-11. Exports of black coal rose by 464 PJ or 6% and uranium exports increased by 258 PJ or 8%. Products which underwent falls included natural gas (38 PJ or 3%), crude oil and feedstock (24 PJ or 3%) and LPG (13 PJ or 14%). Black coal exports accounted for 61% of total energy exports and 88% of black coal production.


ENERGY INTENSITY

Overview

The energy intensity of an industry is a measure of the energy consumed to produce one unit of economic output. The unit of measurement used in the following graphs and commentary for each industry is gigajoules of energy consumed per millions of dollars of Industry Gross Value Added (GJ/$m IGVA). A high energy intensity figure does not necessarily imply that an industry is using energy inefficiently. Most industries engaged in physical transformation of raw materials will use more energy than service industries. The inverse of this measure ($m IGVA per GJ) is be referred to as energy productivity.

Further details on energy intensity is contained in the Explanatory Notes.

Table 1.1 - Energy intensity, Australia - 2002-03 to 2011-12 (GJ/$m IVGA)
	2008-09	2009-10	2010-11	2011-12
Agriculture	2 566	2 674	2 753	2 844
Mining	4 121	3 819	4 056	3 763
Manufacturing	11 995	11 760	11 554	11 535
Water Supply & Waste Services	1 778	1 697	1 517	1 515
Construction	1 630	1 656	1 682	1 556
Transport	8 564	8 542	8 605	8 453
Commercial & Services	455	448	449	448
All selected industries	2 507	2 449	2 442	2 370

Differences in energy intensity between industries reflect different production processes and the share of energy within the production input mix.

The energy intensity of Australian industries fell by 5% between 2008-09 and 2011-12. Agriculture, Forestry and Fisheries is the only industry showing rising energy intensity from 2008-09 to 2011-12. Mining's decreasing energy intensity is a reversal of trends in the previous decade. Australia’s most energy intensive industries were Manufacturing (11,535 GJ/$m IGVA), Transport (8,453 GJ/$m IGVA) and Mining (3,763 GJ/$m IGVA), while the least energy intensive industries in 2011-12 were Commercial and Services (448 GJ/$m IGVA) and Construction (1,556 GJ/$m IGVA).
ENERGY INDICATORS

Energy accounts can be used with information sources such as Gross Domestic Product (GDP), Household Final Consumption Expenditure (HFCE) and Consumer Price Index (CPI) to provide greater insights for policy makers and researchers. For example, combining information in the accounts with supplementary demographic and economic information makes it possible to derive energy use per capita or per unit of GDP.



Energy productivity is the GDP per unit of energy used and is a measure of the economic value associated with energy use. Energy productivity is determined by energy efficiency, energy prices and the composition of the economy.

Figure 1.7 presents GDP per intermediate energy use, total net energy used and GDP. From 2002-03 to 2011-12 GDP increased by 31%, net intermediate energy use increased by 17% and energy productivity (defined as GDP/intermediate energy use) increased by 12%. The largest increase in energy productivity occurred in 2011-12 (3%) which corresponded with an increase in GDP of 4% with only a 1% increase in energy use.



Figure 1.8 shows that while household energy use for the period 2002-03 to 2011-12 increased by 12%, household energy use per household decreased by 6%. Total household expenditure for this period increased by 68% while expenditure on electricity, gas and other fuels increased by 109%. Expenditure on food increased at the same level as total household expenditure. Increases in expenditure on transport were greater than all selected items in 2007-08 (18%) but decreased the following 2 years by 16% as expenditure on electricity, gas and other fuels and food increased by 24% and 14% respectively.




Figures 1.9 and 1.10 show the household use of electricity and gas energy from 2002-03 to 2011-12. Total electricity use in households decreased by 9% with electricity use per household decreasing by 23% over this period. The CPI for electricity for the same period increased by 93%, with most of this increase occurring from 2006-07 to 2011-12.



The use of gas by households from 2002-03 to 2011-12 rose by only 1% while gas used per household has decreased by 15%. The CPI for gas for this period increased by 74% with the majority of this increase taking place from 2007-08 to 2011-12.

The use of transport fuels per household decreased by 18% from 2002-03 to 2011-12 while total transport fuel use decreased by 3%. The CPI for automotive fuels has been more volatile than the CPI for electricity and gas with increases from 2002-03 to 2007-08 followed by decreases in 2008-09 and 2009-10 and subsequent increases in 2010-11 and 2011-12.


ENERGY ASSETS

Black Coal

Black coal can be found in all states and the Northern Territory. However the majority of recoverable Economic Demonstrated Resources (EDR) is in Queensland and New South Wales. Black coal is commonly used as a fuel in electricity generation, as well as to produce coke for iron and steel making. Australia's stocks or EDR of black coal was 1,601,370 PJ for the 2011-12 financial year.

Table 1.2 - Energy Assets, Black Coal Economically Demonstrated Resources, Australia - 2008-09 to 2011-12(PJ)
	2008-09	2009-10	2010-11	2011-12
Opening stock	1 054 350	1 442 200	1 477 948	1 341 711
Less extractions	9 015	9 765	9 215	9 672
Plus other stock changes(a)	378 835	25 983	-145 452	249 987
Closing stock	1 442 200	1 477 948	1 341 711	1 601 370
(a) Includes reclassifications, re-evaluations, discoveries and catastrophic losses

Brown coal

Brown coal (also known as lignite) is primarily mined in Victoria for electricity generation. Brown coal is also used to produce briquettes, char products, soil conditioners and fertilisers. Stocks of brown coal have increased from 362,790 to 433,077 PJ for the 2007-08 and 2011-12 financial years.

Table 1.3 - Energy Assets, Brown Coal Economically Demonstrated Resources, Australia - 2008-09 to 2011-12 (PJ)
	2008-09	2009-10	2010-11	2011-12
Opening stock	363 770	362 790	374 135	409 018
Less extractions	720	726	727	735
Plus other stock changes(a)	-1 700	10 619	34 156	23 324
Closing stock	362 790	374 135	409 018	433 077
(a) Includes reclassifications, re-evaluations, discoveries and catastrophic losses

Crude Oil

Australia is a net importer of oil and oil products and has limited domestic supplies of crude oil. The majority of Australia’s crude oil and condensate production occurs off the north-west coast, in the Carnarvon and Bonaparte Basins, which is exported to refineries in south-east Asia.

Table 1.4 - Energy Assets, Crude Oil Economically Demonstrated Resources, Australia - 2008-09 to 2011-12 (PJ)
	2008-09	2009-10	2010-11	2011-12
Opening stock	16 530	18 714	17 524	na
Less extractions	1 042	1 004	977	944
Plus other stock changes(a)	1 142	-2 194	na	na
Closing stock	18 714	17 524	na	na
na not available
(a) Includes reclassifications, re-evaluations, discoveries and catastrophic losses

LPG

LPG is normally a gas in subsurface reservoirs and the surface but is stored and transported as a liquid under pressure and forms part of Australia’s liquid fuel supply. The majority of LPG is in the Carnarvon, Bonaparte and Browse Basins and the Gippsland Basin off Victoria. In 2008-09 stocks of LPG were 4,649 PJ but this fell by 18% to 3,823 PJ in 2009-10.

Table 1.5 - Energy Assets, LPG Economically Demonstrated Resources, Australia - 2008-09 to 2011-12 (PJ)
	2008-09	2009-10	2010-11	2011-12
Opening stock	4 649	4 304	3 823	na
Less extractions	172	177	172	162
Plus other stock changes(a)	-517	-659	na	na
Closing stock	4 304	3 823	na	na
na not available
(a) Includes reclassifications, re-evaluations, discoveries and catastrophic losses

Natural Gas

Natural gas consists of a combustible mixture of gases mainly comprised of methane. Gas is used for electricity generation and to power household and commercial appliances such as stoves and heaters. Between the 2008-09 and 2009-10 financial years the stocks of natural gas increased by 5,257 PJ.

Table 1.6 - Energy Assets, Natural Gas(a) Economically Demonstrated Resources, Australia - 2008-09 to 2011-12 (PJ)
	2008-09	2009-10	2010-11	2011-12
Opening stock	106 700	140 219	145 476	na
Less extractions and other stock changes(b)	33 519	5 258	np	np
Closing stock	140 219	145 476	na	na
na not available
np not available for publication but included in totals where applicable, unless otherwise indicated
(a) Excludes shale gas
(b) Includes reclassifications, re-evaluations, discoveries and catastrophic losses

Uranium

The major uses for uranium are as a fuel in nuclear power reactors for electricity generation, in the manufacture of radioisotopes for medical applications and nuclear research. The majority of Australia’s uranium resources are located at 4 deposits:

• Olympic Dam in South Australia, which is the world’s largest uranium deposit;
• Ranger and Jabiluka in the Northern Territory; and
• Yeelirrie in Western Australia.

Stocks of uranium increased by 10% or 58,240 PJ from 2008-09 to 2011-12.

Table 1.7 - Energy Assets, Uranium Economically Demonstrated Resources, Australia - 2008-09 to 2011-12 (PJ)
	2008-09	2009-10	2010-11	2011-12
Opening stock	600 880	668 080	666 680	659 120
Less extractions	4 846	3 341	3 322	3 525
Plus other stock changes(a)	62 354	-4 741	-10 882	956
Closing stock	668 080	666 680	659 120	663 600
(a) Includes reclassifications, re-evaluations, discoveries and catastrophic losses

FURTHER INFORMATION

For more detailed data on supply and use, please refer to the data cubes.

For detail on the conceptual framework under which the Energy Accounts are compiled, please see Explanatory Notes.

The Hybrid physical-monetary energy use table component of this publication will be released in the middle of 2014.