Energy and Development

Flashcards covering key concepts from a lecture on energy development, focusing on fossil fuels, OPEC, and their impact on the economy.

What is the lowest cost source of energy today?

Fossil fuels are currently the lowest cost source of energy.

What percentage of the world's energy is supplied by fossil fuels?

Five sixths of the world's energy is supplied by fossil fuels.

Name the three major sources of fossil fuels.

Coal, petroleum, and natural gas.

What economic principle explains the price of energy sources?

The price of energy sources is determined by supply and demand.

Since what year has OPEC been monitoring the stability and prices of the petroleum market?

OPEC was formed in 1960.

What countries are the founding members of OPEC?

Iraq, Kuwait, Iran, Saudi Arabia, and Venezuela.

How much of the world's oil reserves does OPEC control?

OPEC controls more than 80% of the world's proven crude oil reserves.

What was one major reason for the increase in oil prices during 2022?

The Russian invasion of Ukraine.

What does OPEC stand for?

Organization of the Petroleum Exporting Countries.

What is a significant consequence of increasing fossil fuel prices on consumer goods?

Higher costs at the pump lead to increased prices for groceries and other goods.

What is the correlation between population growth in developing countries and energy reliance?

As population increases in developing countries, their reliance on energy grows by about 3% per year.

Which country is the largest energy consumer in the world?

China is the largest energy consumer due to its large population and manufacturing.

What is the environmental impact of reliance on fossil fuels in LDCs (Less Developed Countries)?

LDCs often pollute more due to fewer environmental regulations.

What is the difference between 'proven' and 'potential' in terms of oil reserves?

Proven reserves are known quantities that can be extracted, while potential reserves are estimated quantities based on geological surveys.