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1301.0 - Year Book Australia, 2006  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 20/01/2006   
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Contents >> Chapter 17 - Energy >> Energy production

ENERGY PRODUCTION

In examining Australia's energy production, it is important to distinguish between primary and derived (or secondary) energy. Primary energy products are forms of energy obtained directly from nature, including non-renewable fuels such as coal, natural gas and crude oil, and renewable fuels such as wood, hydro-electricity and wind. Derived energy products are fuels produced from another fuel, commonly a primary energy product. Derived energy products include electricity, petroleum products such as petrol and diesel, and coke (Bush et al. 1999).

PRIMARY ENERGY PRODUCTION

In 2003-04 Australia produced 15,690 PJ of primary energy, an increase of 27% since 1998-99 (table 17.5). Although primary energy is produced from a range of renewable and non-renewable sources, it is the non-renewable sources that dominate production. Commodities such as black coal accounted for nearly half (49%) of total energy production in 2003-04, followed by uranium (29%), natural gas (9%) and crude oil (7%).

Renewable primary energy products produced include wood, bagasse, biofuel, hydro-electricity and solar thermal energy. In 2003-04 these products accounted for 2% (265 PJ) of total production.
17.5 PRODUCTION OF PRIMARY ENERGY
1998-99
2002-03
2003-04
Fuel
PJ
PJ
PJ
Black coal
5,993.9
7,331.0
7,614.5
Brown coal
669.0
654.0
658.5
Crude oil and ORF(a)
1,032.2
1,232.8
1,031.4
LPG(b)
103.5
124.1
122.9
Natural gas
1,313.7
1,444.3
1,468.0
Uranium
3,002.1
4,398.8
4,529.4
Wood
109.1
98.5
95.9
Bagasse and biofuel
109.6
106.5
108.5
Hydro-electricity
60.4
58.7
58.0
Solar thermal
3.9
2.8
2.6
Total
12,397.4
15,451.5
15,689.7
(a) Other refinery feedstock.
(b) Naturally occurring.

Source: ABARE 2004b, 2005b, Table A.


Graphs 17.6 and 17.7 show the production of non-renewable and renewable energy sources from 1973-74 to 2003-04. During this period, the production of non-renewable fuels has shown an upward trend, increasing from 3,009 PJ in 1973-74 to 15,425 PJ in 2003-04 (up by 413%). In contrast, there has been little growth in the combined production of primary renewable energy sources, which increased from 198 PJ in 1973-74 to 265 PJ in 2003-04.

Graph 17.6: PRODUCTION OF PRIMARY FUELS, Non-renewables


Graph 17.7: PRODUCTION OF PRIMARY FUELS, Renewables


DERIVED ENERGY PRODUCTION

Australia produces a variety of derived (or secondary) energy products. Derived energy produced in 2003-04 totalled 2,510 PJ (diagram 17.1). Petroleum fuels make up a large proportion of derived energy produced, including automotive gasoline (592 PJ in 2003-04), diesel (485 PJ) and aviation turbine fuel (182 PJ) (table 17.8).
17.8 PRODUCTION OF DERIVED ENERGY(a)
1998-99
2002-03
2003-04
Fuel
PJ
PJ
PJ
Coal products
Coke
116.0
97.0
104.0
Coal by products
80.9
61.0
64.0
Briquettes
8.6
5.4
3.7
Petroleum products
Automotive gasoline
636.0
613.1
592.2
Aviation turbine fuel
192.6
188.6
182.1
Fuel oil
66.3
57.7
44.0
Diesel(b)
501.8
515.2
484.7
Thermal electricity
674.9
778.2
800.0
(a) Selected fuels only.
(b) Includes automotive diesel oil and industrial and marine diesel fuel.

Source: ABARE 2005b, Table F1.


ECONOMIC ACTIVITY OF THE ELECTRICITY AND GAS SUPPLY INDUSTRIES

The electricity supply industry has undergone substantial structural change over the last decade. The emergence of a national electricity market has resulted in the replacement of the traditional state-owned vertically integrated monopolies with businesses that compete within the same marketplace. There is also an increasing diversification of energy businesses as they aim to provide customers with a wider range of energy services. Electricity businesses are entering the gas market and, conversely, gas businesses are entering the electricity market as opportunities within these markets expand.

Tables 17.9 and 17.10 present selected economic activity figures for the electricity and gas supply industries. From 2000-01 to 2002-03, sales and service income of the electricity supply industry increased by 22% to $31,433 million (m). Over the same period, sales and service income of the gas supply industry increased by 15% to $6,122m. The gross wages and salaries of employees in the electricity supply industry increased by 11% from $2,319m in 2000-01 to $2,565m in 2002-03. Over the same period, gross wages and salaries of employees in the gas supply industry increased by 11% to $130m in 2002-03. In 2002-03, the industry value added of the electricity and gas supply industries was $12,265m and $1,250m respectively.
17.9 SUMMARY OF OPERATIONS, Electricity industry
2000-01
2001-02
2002-03
$m
$m
$m
Sales and service income(a)
25,746
25,454
31,433
Wages and salaries(b)
2,319
2,433
2,565
Industry value added
10,676
11,063
12,265
(a) Includes sales of goods, income from services and rent, leasing and hiring income.
(b) Excludes the drawings of working proprietors.

Source: Electricity, Gas, Water and Sewerage Operations, Australia, 2001-02 and 2002-03 (8226.0).
17.10 SUMMARY OF OPERATIONS, Gas industry
2000-01
2001-02
2002-03
$m
$m
$m
Sales and service income(a)
5,329
5,737
6,122
Wages and salaries(b)
117
113
130
Industry value added
1,373
1,378
1,250
(a) Includes sales of goods, income from services and rent, leasing and hiring income.
(b) Excludes the drawings of working proprietors.

Source: Electricity, Gas, Water and Sewerage Operations, Australia, 2001-02 and 2002-03 (8226.0).


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