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4604.0 - Energy Account, Australia, 2010-11 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 11/12/2012   
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MAIN FINDINGS

Overview
Supply of Energy
Use of Energy
Energy Intensity
Further Information


INTRODUCTION

Demand for energy products has risen in recent years, driven by growing exports and domestic use, which can in turn affect the price and security of the supply of energy. 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 within the System of Environmental-Economic Accounting for Energy (SEEA-E), a satellite system of the System of National Accounts (SNA), and includes the supply-use framework.

The diagram below presents an overview of key data and sets out the scope of the Energy Account Australia 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.

1.1 Supply and use, by components - 2010-11
Diagram: 1.1 Supply and use, by components—2010-11


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) - 2012. ABS uses the SEEA-E to transform AES into a framework consistent with the 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.
OVERVIEW

Supply
  • The majority of Australia's total energy supply is produced domestically (89%), while the remainder is imported (11%).
  • Australia's domestic energy production in 2010-11 was 16,859 petajoules (PJ), a decrease of 3.1% from 2009-10. A significant driver was the decrease in black coal production which fell by 612 PJ or 6%.
  • Imports increased by 7.9% from the previous year, to 2,020 PJ. This was driven by crude oil and refinery feedstock, which accounted for 61% of imports and increased 16% from the previous year.
  • Renewable energy production has been steadily increasing, showing an average 6% increase per year since 2008-09. However, it only accounts for just under 2% of domestic energy production.


Use
  • A significant portion of Australia's total energy use is exported (71%), while 22% is consumed domestically by industry and households.
  • Australia's domestic energy use (industrial and households) in 2010-11 was 4,120 PJ, an increase of 1.7% from 2009-10. Household energy use increased 0.8% while industry energy use increased 2.0%. Over the same time period, Australia's population grew by 1.4% and Gross Domestic Product in chain volume measure increased by 2.4%.
  • Exports decreased by 2.9% from the previous year, to 13,392 PJ.
  • The decrease of 612 PJ in black coal production corresponded with a decrease of 275 PJ in black coal exports.


Energy Intensity

The energy intensity of an industry is a measure of the energy consumed to produce one unit of economic output, measured in gigajoules per million dollars of Industry Gross Value Added (GJ/$m IGVA). Further details are provided in the Energy Intensity section.
  • The energy intensity of Australian industries declined by 0.1% between 2009-10 and 2010-11, compared to an average of 1.0% per year since 2002-03.
  • Australia's most energy intensive industries in 2010-11 were Manufacturing (9,846 GJ/$m of IGVA), Transport (9,196 GJ/$m of IGVA) and Mining (4,439 GJ/$m of IGVA).
  • The least energy intensive industries in 2010-11 were Commercial and services (584 GJ/$m of IGVA) and Construction (1,383 GJ/$m of IGVA)
SUPPLY OF ENERGY

Overview

The energy supply tables record details of the supply of energy products for 2008-09, 2009-10 and 2010-11. Net supply consists of energy products as they enter the economy, either by domestic extraction (e.g. mining production) or as imports.

Australia's total net supply reported 18,879 PJ in 2010-11, a decrease of 2.0% from the previous year. Of total net supply, a significant portion was produced domestically (89%), while the remainder was imported (11%). Of the domestic share, production fell 3.1% from the previous year. The main drivers of this fall were decreases in the production of black coal, which fell by 612 PJ or 6%, and crude oil and refinery feedstock, which fell by 27 PJ or 3%.

The Mining industry contributed 94% of domestic energy production (i.e. extraction of fossil fuels and uranium), which was the same as 2009-10. In line with SEEA recommendations, the household energy production, although shown separately, has been included in the totals of relevant industries.


Significant findings
1.2 Net energy supply, by industry and imports - 2008-09 to 2010-11
Graph: 1.2 Net energy supply, by industry and imports—2008-09 to 2010-11


1.3 Net energy supply, by product (including imports) - 2008-09 to 2010-11
Graph: 1.3 Net energy supply, by product (including imports)—2008-09 to 2010-11


Black coal, which accounts for 55% of domestic production, decreased by 612 PJ, or 6%, from 2009-10 levels. Production was impacted by wide spread flooding in north eastern Australia in early 2011. The drop in black coal production had a flow on effect into black coal exports, which decreased by 274 PJ, or 3%. Domestic production of crude oil and refinery feedstock also dropped 27 PJ or 3% in 2010-11, with imports of this product increasing significantly over the period, by 173 PJ, or 16%.

Renewable energy production has been steadily increasing, showing an average 6% increase per year since 2008-09 but still accounts for just under 2% of domestic energy production. Solar energy, which increased by 3 PJ or 26%, and wind energy, which increased by 3 PJ or 15%, were the fastest growing in renewable energy production in 2010-11. The use of other renewable energy sources such as bagasse (sugar cane residue) and hydro-electricity fluctuate according to sugar production and water availability for hydro-electricity generators.

Total imports increased by 8% from 1,872 PJ in 2009-10 to 2,020 PJ in 2010-11. The main imports were crude oil 1,229 PJ (61% of all imports, up from 56% in 2009-10) and diesel 341 PJ (17% of total imports, up from 18% in 2009-10). Imports of petrol registered a drop of 32% to 90 PJ but there was also a significant drop in petrol inventories (41 PJ) meaning that despite lower imports, domestic use and refining of petrol were little changed from the previous year.
USE OF ENERGY

Overview

The energy use tables record use of energy products for 2008-09, 2009-10 and 2010-11. Net use consists of intermediate consumption by industry, final consumption by households, exports, inventory changes, conversions and losses.

Australia's domestic energy consumption (i.e. industry and household energy use, excluding exports) was 4,120 PJ in 2010-11, an increase of 68 PJ or 1.7% from 2009-10. Industry energy use was 3,097 PJ up 2.0% from 2009-10, accounting for 75% of total domestic energy use. Its primary fuel sources were natural gas (828 PJ or 27%), diesel (690 PJ or 22%) and electricity (685 PJ or 22%). Households reported energy use of 1,023 PJ, an increase of 0.8% from 2009-10, representing a 25% share of total domestic energy use.

Outside of domestic consumption, exports accounted for 13,392 PJ, which was a 2.9% decrease from 2009-10. Australia's main exports were black coal (8,053 PJ or 60%), uranium (3,267 PJ or 24%) and natural gas (1,086 PJ or 8%). Net losses and conversions accounted for 1,954 PJ in 2010-11. Losses and conversions occur in the transformation of fossil fuels and organic waste into electricity, crude oil into LPG and petroleum products, and coal by-products in steel making.


Significant findings
1.4 Domestic net energy use, by industry - 2008-09 to 2010-11
Graph: 1.4 Domestic net energy use, by industry—2008-09 to 2010-11


1.5 Domestic net energy use, by product - 2008-09 to 2010-11
Graph: 1.5 Domestic net energy use, by product—2008-09 to 2010-11


The main fuels consumed domestically in Australia were natural gas (24%), electricity (22%), diesel (19%) and petrol (15%). While electricity and petrol consumption were essentially unchanged from 2009-10, natural gas increased by 35 PJ or 4% and diesel by 27 PJ or 4%. The increased use of natural gas was mainly driven by the mining industry.

The Manufacturing industry was the largest user of domestic energy (accounting for 1,063 PJ, or 26%) in 2010-11, which was a slight decrease of 7 PJ or 1% from 2009-10. Over one-third (35%) of manufacturing energy use occurred within non-ferrous metals production, followed by chemicals and petroleum production (24%) and other manufacturing products (15%). These also showed little movement from the previous year. The remaining energy was used in the Iron and steel; Food, beverages, textiles; and Wood, paper and printing industries.

The Transport industry was the second largest consumer of domestic energy with 630 PJ or 15%, which was an increase of 26 PJ or 4% on 2009-10. The largest components within transport were other refined fuels (45%) and diesel (41%), both of which showed moderate increases of 5% and 3%, respectively. The use of biofuels within Road transport has increased significantly by 3 PJ or 34% from 2009-10.

Household energy use accounted for 1,023 PJ or 25% of total domestic energy use, an increase of 0.8% from 2009-10. The main energy sources were petrol (45%), electricity (22%) and natural gas (14%). Households reduced their petrol consumption by 2 PJ, but increased their use of diesel fuel by 3 PJ compared to 2009-10. Household use of natural gas showed a steady increase of between 2% and 3% since 2008-09.

1.6 Exports, by product - 2008-09 to 2010-11
Graph: 1.6 Exports, by product—2008-09 to 2010-11


The export market is the single largest destination for Australian energy products, accounting for 13,392 PJ, or 79% of domestic energy extraction in 2010-11. Exports of energy products in 2010-11 declined by 394 PJ or 3% compared to 2009-10. The main contributors to this fall were black coal, which fell by 275 PJ or 3%, and uranium, which fell by 284 PJ or 8%. This was partially offset by natural gas, which rose by 114 PJ or 12%, and crude oil, which rose by 63 PJ or 9%. Black coal exports accounted for 60% of total energy exports, and 87% 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 million 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) would be called energy productivity.

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

1.7 Energy intensity - 2008-09 to 2010-11

2008-09
2009-10
2010-11
Industry
GJ/$m
GJ/$m
GJ/$m

Agriculture
3 452
3 658
3 502
Mining
4 158
4 078
4 439
Manufacturing
10 004
9 907
9 846
Water Supply and Waste Services
2 219
2 061
1 970
Construction
1 392
1 419
1 383
Transport
8 961
9 098
9 196
Commercial and Services
602
597
584



Differences in energy intensity between industries reflect different production processes and the share of energy within the production input mix. The Manufacturing industry is the most energy intensive industry within the Australian economy, followed by Transport and Mining. The Commercial and services industries, which include Retail, Health and Education industries, are non-energy intensive industries.

1.8 Energy Intensity, All industries (a) - 2002-03 to 2010-11
Graph: 1.8 Energy Intensity, All industries (a)—2002–03 to 2010–11


While the Energy Account, Australia has not been produced every year since 2002-03, it has been possible to use available data to produce a time series of energy intensity over this period. From 2002-03 to 2010-11, overall energy intensity in Australia has declined with 8% less energy used per unit of economic output ($m IGVA) in 2010-11 than in 2002-03, representing an average annual decrease in energy intensity of 1.0%. This is due to net energy use increasing 18% while IGVA increased by 28%. Over 2009-10 and 2010-11, the energy intensity decline flattened to 0.4% and 0.1% respectively, as a result of an ongoing increase in Mining industry energy intensity coupled with reduced economic growth in the lower intensity but economically predominant Commercial and services part of the economy.


Significant findings

Key findings of the most energy intensive industries is provided below.

1.9 Manufacturing - 2002-03 to 2010-11
Graph: 1.9 Manufacturing—2002–03 to 2010–11


Manufacturing is the highest energy intensity industry and remained essentially flat between 2002-03 and 2010-11, peaking at 10,325 GJ/$m IGVA in 2006-07. This was 3% higher than the 9-year average of 10,009 GJ/$m IGVA. Manufacturing is a diverse industry consisting of many different processes with varying energy requirements. Manufacturing intensity depends heavily not just on energy efficiency but also on the structural makeup of the industry. For example, a shift away from basic primary processes towards less energy intensive transformations of primary materials would lead to a decline in overall energy intensity.

1.10 Transport - 2002-03 to 2010-11
Graph: 1.10 Transport—2002–03 to 2010–11


Total transport energy intensity has risen between 2002-03 and 2010-11, from 8,669 GJ/$m IGVA to 9,196 GJ/$m IGVA. This is driven mostly by a rise in air transport energy intensity, with the remainder of the Transport industry showing a small decline. Air transport is extremely energy intensive, with its energy intensity being 42,745 GJ/$m IGVA in 2010-11, approximately four times greater than the Manufacturing industry.

1.11 Mining - 2002-03 to 2010-11
Graph: 1.11 Mining—2002–03 to 2010–11


From 2002-03 to 2010-11 energy intensity in Mining increased in most years with energy consumption growing by 56% from 374 to 582 PJ and IGVA growing by 26% from $104 billion to $131 billion. Energy intensity during the period was highest in 2010-11 at 4,439 GJ/$m IGVA. The quantity of material, including overburden, that must be extracted, transported and processed is a key factor in the energy consumption of mining a given commodity. This long term increase in energy intensity for Mining is likely to be associated with the expansion and compositional changes in the industry.
FURTHER INFORMATION

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

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 mid 2013.

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070.

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