Quality Declaration
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EXPLANATORY NOTES
2 The aim of the EAA is to integrate data from different sources into a consolidated information set, making it possible to link physical data on energy to economic data, such as that in Australia's National Accounts. 3 Environmental-Economic accounts can provide information and improved understanding on a range of issues including:
ENVIRONMENTAL ACCOUNTING FRAMEWORK
RELATIONSHIP BETWEEN ENERGY ACCOUNT, AUSTRALIA AND THE AUSTRALIAN NATIONAL ACCOUNTS 5 Energy supply and use tables provide a framework to link physical information to core components of the Australian National Accounts (ANA). Physical data are presented in supply and use tables and monetary energy use is juxtaposed with physical energy use in the Hybrid Energy Use table. SUPPLY AND USE OF ENERGY 6 The supply table records the total supply of energy products within the economy, including imports. The use table records the total use of energy products within the economy and for export. The supply and use tables can be compiled in both physical and monetary terms. 7 The supply and use methodology is based on the fundamental economic identity that supply of products equals use of products. Scope 8 This edition of EAA presents a 'hybrid' (physical and monetary) table of gross energy supply and use for the years 2008-09 to 2011-12. 9 Data on the physical supply and use of energy products are primarily derived from the Bureau of Resources and Energy Economics (BREE) Australian Energy Statistics - Energy Update 2013 (AES). The ABS transforms AES into the SEEA framework to enable linkages between energy supply, energy use and the Australian National Accounts. 10 To estimate monetary use of energy, the ABS used implicit unit prices and expenditure data drawn from a number of sources, including ABS surveys. Net Energy Flow Accounts 11 Net energy flow accounts record only energy 'entering' the economy (imports and extraction) and energy 'leaving' the economy (exports, energy used for final purposes and energy losses in conversion processes), within a supply-use framework. 12 The supply table of the net energy flow accounts shows the different energy products extracted within a country and supplied from the rest of the world (imports). Note that direct extraction by households is treated as supply by the relevant industry, but is also identified separately. 13 The use table shows the different energy products consumed for final purposes (final use of energy plus energy losses due to conversions) and supplied to the rest of the world (exports), along with inventory changes. The main accounting identity underlying the net flow accounts for energy is:
14 This accounting identity is only valid for the sum of all energy products in the economy and not for individual energy products. This is because the net supply table balances all energy use, whereas supply of an individual product will generally not equal use of that product due to losses and transformations. 15 Data contained in the net supply and use tables of this publication are used to compile the energy intensity time series estimates. Gross Energy Flow Accounts and the Hybrid (physical-monetary) Energy Use Table
23 Wherever possible, data related to the refined petroleum products (petrol and diesel), have been shown separately. 24 The Hybrid Energy Use table also separates liquefied natural gas (LNG) from natural gas. At present, this separation is not made in the net physical supply and use tables. Industries 25 Industry classifications used in this publication follow the 2006 edition of the Australian and New Zealand Standard Industry Classification (ANZSIC).
26 Several industries are further broken down on an energy use significance basis into the following groupings, with the relevant ANZSIC codes listed in brackets: 27 Manufacturing:
28 Electricity, Gas, Water Supply and Waste Services:
29 Transport:
30 Commercial and Services covers a broad grouping of thirteen ANZSIC division level service industries. These industries have been grouped together because the energy consumption of each individually is relatively small and BREE statistical coverage of such industries is not as detailed as for other industries. Commercial and Services corresponds to the grouping of the same name used in BREE's AES and consists of the following ANZSIC divisions:
General Government sector 31 Government energy use as identified in the physical supply use tables refers to the General Government institutional sector. The principal function of general government entities is to provide non-market goods and services primarily financed by taxes, to regulate and influence economic activity, to maintain law and order, and to redistribute income by means of transfer payments. This sector covers the Commonwealth Government, state governments and local government municipalities, as well as associated agencies and non-departmental bodies. Public universities are also included in this sector. 32 Public non-financial corporations are excluded from this sector. PNFCs provide goods and services which are predominantly market, non-regulatory and non-financial in nature, and financed through sales to consumers of these goods and services. With regards to the Energy Accounts, Australia publication, significant activities in this sector include public transport companies and energy, water and waste utilities. These are classified by ANZSIC to their relevant industry. 33 Further information about the definitions of the General Government and Public non-financial corporation sectors is available in the explanatory notes for the Government Finance Statistics (5512.0) publication. Data Sources 34 The estimates contained in this publication are drawn from a wide range of ABS and non-ABS data sources, including: 35 ABS sources:
36 Non ABS sources:
37 A range of other data sources were used in EAA for validation, or as an input to developing estimation methodologies. 38 ABS data sources:
39 Non-ABS sources:
Methods for Calculating Energy Supply and Use 40 These notes are intended as a general guide to the method of calculating estimates of energy supply and use. For more detail on the methods please contact the Director, Environmental Accounts Section, Australian Bureau of Statistics (email address: Environmental_Accounts_WDB@abs.gov.au). 41 Data on the physical supply and use of energy products are primarily derived from the Bureau of Resources and Energy Economics (BREE) Australian Energy Statistics (AES) - Energy Update 2013. 42 ABS Energy Account, Australia domestic net energy consumption figures do not align with AES Total Final Energy Consumption (TFEC) although both of these are "net" measures of energy use, due to differing treatments of distribution and extraction losses and own use of energy within industries. TFEC excludes distribution and extraction losses and own use of energy within "conversion sectors" while EAA treats these as part of intermediate consumption. The treatment of bitumen, solvents, lubricants and greases outlined below also accounts for some of the difference. The largest contributors to the difference between the two measures are in consumption of electricity and natural gas, because distribution and extraction losses are recorded in Energy Account, Australia as use by the relevant industries but are excluded from TFEC in the AES. 43 While the EAA draws on data from BREE's AES, data from the ABS Energy, Water and Environment Management Survey (EWES) 2008-09 and Energy Use, Electricity Generation and Environmental Management 2011-12 (still published from the EWES collection) were used to allocate the supply and use of energy products between industries. 44 The following changes have been applied to allow linkages between energy supply, energy use and the Australian National Accounts (ANA): Reallocation of Petrol, Diesel and LPG use by Industry and Households 45 In BREE's AES, physical use of land transport fuels (petrol, diesel and LPG) is assigned on the basis of activity type, rather than according to 'industry of ownership'. For example, fuel used by a truck owned by a mining company and operating between mining sites would be treated as transport activity in AES, but an industry-based view would assign this use to the mining industry. In practice, application of the fuel use re-allocation methodology impacts significantly on derived estimates of fuel use. 46 EAA uses the ABS EWES and Survey of Motor Vehicle Use data to reallocate land transport fuels, to align with SEEA and SNA industry recording principles. 47 The reallocation methodology impacts significantly on AES fuel use figures. For example, the proportion of refined fuel use attributed to households ('residential') in AES is negligible. However, when usage is recorded on the basis of ownership, households are the largest single user of refined fuels. The implications are also significant for industry-based measures of energy intensity. Partial reallocation of Electricity and Natural Gas 48 In BREE's AES, physical use of fuels is allocated according to an activity basis and with a differing units model. This means that some businesses and activities are classified to different industries. In particular, estimates for the Construction, Transport and Commercial and services industries' energy use are not compatible with ABS estimates and have been reallocated accordingly. 49 EAA uses the ABS EWES data to reallocate electricity and natural gas between selected industries to align better with expenditure data in these surveys. Treatment of chemical feedstocks 50 Chemical industry feedstocks are not separately identified in BREE's AES and are included in "petroleum products not elsewhere classified". For the purpose of closer concordance with Australian National Accounts, these have been identified and reallocated to the energy product category Crude Oil and Feedstocks. Treatment of biofuels 51 Biofuels identified in Energy Account, Australia include biodiesel, ethanol, and landfill and sludge biogas. This treatment differs to AES treatment in that biogas which currently includes biogas within natural gas. In addition, AES assigns bio-diesel and ethanol as consumed by activities such as transport, while Energy Account, Australia shows these fuels as consumed (ie, blended) in the production of petrol and diesel. Consumption of these blended fuels is then contained within general final use of petrol and diesel. Treatment of Household production of energy 52 Energy Account, Australia follows follows SEEA and ASNA principles for recording so-called "backyard" production by households. A value is imputed within output estimates for the value of goods produced and consumed by households. For example: "The gross value of agricultural production includes an allowance for backyard production of fruit and vegetables and the value of meat produced from livestock raised for household use". (https://www.abs.gov.au/Ausstats/abs@.nsf/2f762f95845417aeca25706c00834efa/AC6C11A0F11910FBCA2569A40006164B?opendocument ) 53 An analogous approach is used to assign energy production within SEEA-E principles: "following the general principles from the national accounts, if households extract or produce energy, the energy extraction or production should be recorded as part of the product output of the industry that would otherwise have produced the energy. At the same time a corresponding private consumption of energy products should be recorded for the households". (Draft SEEA-E chapter 5 http://unstats.un.org/unsd/envaccounting/seeae/chapterList.asp ) 54 Following these principles, in Energy Account, Australia, household production of energy is assigned to the relevant industry to which the activity would normally be classified, but also identified separately within the Supply-Use Tables to maintain information detail. 55 Specifically, within EAA, wood extraction by households is considered part of Division A, Agriculture, forestry and fisheries. Similarly, solar energy extracted within households for the production of electricity is assigned to Subdivision 26, Electricity supply. Solar energy extracted for hot water production is assigned to Subdivision 28, Water supply. This is following the concordance identified between ANZSIC 2811 Water Supply and ISIC 4030 Steam and hot water supply. More detail on ANZSIC-ISIC concordance can be found here: https://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/52BEB156847842FACA257B9500133D97?opendocument Treatment of Bitumen, Solvents, Lubricants and Greases 56 Bitumen, solvents, lubricants and greases are classified by BREE as derived energy within petroleum refining. These products, while containing energy, are not consumed for energy purposes. Their production is classified as final use within Petroleum and chemical products manufacturing. Netting of Secondary Fuels 57 Secondary fuels (which are then re-consumed) are netted out when producing net flow accounts. 58 The following sources were used to assist in the process of netting out secondary fuels:
Adjustment to imports, exports and production to align with the ASNA "residency" view of the boundaries of the Australian economy 59 Adjustments have been made to the EAA to align with the residency view for activity in the Timor Gap as described in the feature article Statistical Treatment of Economic Activity in the Timor Sea (Feature article, Australian National Accounts, ABS cat. no. 5206.0, September 2003). A territory view would exclude this activity entirely from the Australian economy but the residency treatment results in 50% of all activity included as part of the Australian economy. Adjustment to total electricity supply and use 60 Total electricity supply and use has been modelled based on the following sources and thus deviates from estimates contained in Tables A, F and O of BREE's Australian Energy Statistics
Data Quality and Reliability 61 Due to recent revisions in BREE's AES methodology, data for 2008-09 and 2009-10 supply and use figures have been adjusted from previously published figures and additional data for 2010-11 has been included. ENERGY INDICATORS Scope 62 Energy indicators are used to provide a greater understanding or consequences of the production and use of energy. They are tools for expressing energy issues related to economic development to policy makers. Changes in indicator values over time help monitor the results of energy policy. 63 Energy indicators may relate to social, economic and environmental dimensions. Information contained in the Energy Account combined with additional demographic and economic information provides insights into energy efficiency and energy productivity. 64 Due to recent revisions in BREE's AES methodology, data for 2008-09 to 2010-11 supply and use figures used within indicators have been adjusted from previously published figures. Coverage 65 Refer to earlier section on Coverage. Energy Intensity and Productivity 66 Energy intensity is a ratio of energy consumed per unit of economic output (GJ/$m IGVA). The energy intensity analysis is based on the ratios of physical net energy consumption statistics to industry gross value added (IGVA) data. The converse of this measure (unit of output per unit of energy consumption) is energy productivity. Energy productivity is defined as the Gross Domestic Product per unit of energy used and is a measure of the economic value associated with energy use. Energy productivity was derived using Australian National Accounts (cat. no. 5206.0) Table 33: Industry Gross Value Added. Energy intensity and energy productivity indicators use a net view of intermediate energy use (i.e. total industry domestic energy use less household energy, energy exports, and conversions and losses). 67 Energy consumption figures are net energy consumption based on Table F of BREE's AES, with adjustments from the Net Supply and Use tables in Energy Account, Australia applied for all years from 2002-03 onwards. ABS industry gross value added is drawn from the ASNA and is based on the Australian and New Zealand Standard Industrial Classification (ANZSIC 2006). 68 BREE's AES presents comprehensive data on energy consumption by industry. This data has been applied to ABS IGVA data, after the application of reallocation and netting adjustments as described above. 69 Energy Account Australia uses annually reweighted "chain volume" estimates of Industry Gross Value Added (IGVA) in the estimation of energy intensity from Australian System of National Accounts (ABS cat. no. 5204.0). These give constant price values for all years included in the series. For example, all figures contained in Energy Account, Australia 2011-12 estimates of energy intensity are recorded in 2011-12 prices and are thus directly comparable over time. IGVA estimates are re-weighted each year and therefore energy intensity measures are updated with each annual estimation cycle. Household Energy Indicator 70 The household energy indicator is defined as the total net household energy use per the number of Australian households. Household numbers were estimated using Household and Family Projections, Australia, 2006 to 2031 (cat. no. 3236.0). The indicator for household energy use was compared with Household Final Consumption Expenditure (HFCE) for food; transport; electricity, gas and other fuels; and total HFCE. HFCE was derived from Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0) Table 8: Household Final Consumption Expenditure. Household Electricity, Gas and Transport Indicators 71 The household electricity indicator is defined as the total net electricity use per household. Netting adjustments are described above in methods for calculating energy supply and use. Household numbers were estimated using Household and Family Projections, Australia, 2006 to 2031 (cat. no. 3236.0). The indicator is compared with the Consumer Price Index for electricity derived from Consumer Price Index, Australia, Sep 2013 (cat. no. 6401.0) Table 7: CPI Groups, Sub group and expenditure class. 72 The household gas indicator is defined as the total net gas use per household. Netting adjustments are described above in methods for calculating energy supply and use. Household numbers were estimated using Household and Family Projections, Australia, 2006 to 2031 (cat. no. 3236.0). The indicator is compared with the Consumer Price Index for gas derived from Consumer Price Index, Australia, Sep 2013 (cat. no. 6401.0) Table 7: CPI Groups, Sub group and expenditure class. 73 The household transport indicator is defined as the total net transport use per household. Netting adjustments are described above in methods for calculating energy supply and use. Household numbers were estimated using Household and Family Projections, Australia, 2006 to 2031 (cat. no. 3236.0). The indicator is compared with the Consumer Price Index for automotive fuel derived from Consumer Price Index, Australia, Sep 2013 (cat. no. 6401.0) Table 7: CPI Groups, Sub group and expenditure class.
75 Non ABS sources:
PHYSICAL ENERGY ASSET ACCOUNT Introduction 76 Asset accounts for energy resources organise relevant information including the levels and values of stocks and the changes in these over time. Flows of extraction, depletion and discoveries are central to the asset account and in turn these can provide valuable information about energy resources that an economy relies upon. 79 EDRs are resources judged to be economically extractable and for which the quantity and quality are computed partly from specific measurements, and partly from extrapolation for a reasonable physical distance on geological evidence. Figure 1 illustrates where ABS energy asset stocks align with Australia’s National Classification System for Mineral Resources (Geoscience Australia). 80 Other key concepts include Subeconomic Demonstrated Resources (SDR), which are similar to EDRs in terms of certainty of occurrence and, although considered to be potentially economic in the foreseeable future, these resources are judged to be sub-economic at present. Inferred Resources (IFR) are mineral resources for which quantitative estimates are based largely on broad knowledge of the geological character of the deposit and for which there are few, if any, samples or measurements. The estimates are based on an assumed continuity or repetition for which there is geological evidence. This evidence may include comparison with deposits of similar type. Bodies that are completely concealed may be included if there is specific geological evidence of their presence. 81 Coverage for the physical energy asset account includes the following energy assets:
Data sources 82 The estimates contained in the Physical Energy Asset tables are drawn from the following data sources:
83 These notes are intended as a general guide to the method of calculating estimates Physical Energy Asset Account. For more detail on the methods please contact the Director, Environmental Accounts Section, Australian Bureau of Statistics (email address: Environmental_Accounts_WDB@abs.gov.au). Physical Stock Account of Energy Assets Physical Energy Asset Account 86 Other changes in stock covers changes in stock as a result of discoveries, revaluations, reclassifications and catastrophic losses. It was derived using the following formula: Document Selection These documents will be presented in a new window.
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