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Industry Info
Risks with Hydropower

With most hydro resources already developed, renewable developments in Europe focus almost entirely on other energy sources such as wind, biomass, solar photovoltaics and ocean conversion. There is no reported mid- or large-scale hydro development in the pipeline but there are continued installations of small hydro plants. This expansion carries with it risk.

There are concerns that giant dams may cause the earth to move triggering earthquakes, mentioned above. To date these have been unfounded and a bigger concern is earthquake damage to dams, which may lead to the rapid release of water causing damage downstream. During the 7.1 tremor in April 2010 in Qinghai, China, the Changu plant was damaged.

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Oil Reserves and Oil Production

The shortage between oil production and consumption worldwide has been increasing since the late 1990s. Generally a lack of supply does not appear to be due to a current acute lack of refining capacity; although refining capacity is more stretched than it was in the 1980s. Refining throughput accounted for 82% of total global refining capacity and actual crude production accounted for 89% of refinery capacity. Therefore, although new refinery capacity will need to come online in the near term to meet future demand, it is not a cause of current shortage concerns.

Most countries have oil reserves that can be mobilised to meet demand if supplies of oil are insufficient. Members of the European Union must have 90 day of reserves for the three main petroleum energy product categories and they must establish contingency plans, bodies and mandates to release the reserves in response to crisis market conditions through the Oil Supply Group.

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News Headlines
  • Analysts believe US, Iran remain far apart despite Trump’s comments on talks - CNBC
  • Oil Slides on Prospect of Easing Geopolitical Risk, More Supply - Bloomberg
  • Canada's struggling energy industry takes stock at annual Stampede party - Reuters
  • Natural-Gas Traders Bet Heat Wave Will Fizzle - The Wall Street Journal
  • Arctic Refuge Likely Won’t Be Surveyed Before Oil Lease Sales - The New York Times
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