Troubled waters ahead? Rising water risk on global energy industry Report

Insight 21 May 2014

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Report summary

Almost all forms of energy production and power generation are dependent on water. Although agriculture uses two-thirds of global freshwater supplies, energy is by far the largest industrial user (using more than 15% and growing). With the UN predicting a 40% shortfall in global freshwater by 2030, the energy industry is under increasing scrutiny from government and the public on how it uses freshwater supplies.

Executive summary
Introduction
- Almost all forms of energy are dependent on water, and water needs energy
- Water risks vary by fuel type and by location
- Water risks vary by fuel type, based on their different water requirements
- Water risks vary by location, based on climate and socio-political conditions
  - Water is important: with half of global reserves in water-stressed areas and continuing regulatory uncertainties
  - The business challenges are: accessing sources of supply and addressing potential cost increases
  - Potential outcomes include: technology to improve environmental performance and more public engagement
- Middle East oil faces water risks to its future potential upside
  - Water is important: with inadequate water infrastructure for asset development and desalination demand for oil
  - The business challenges are: minimising project delays and maximising oil production
  - Potential outcomes include: improved water management and more efficient desalination technologies
- China faces water risks to its future coal mining and coal-fired power plants
  - Water is important: as energy demand doubles by 2030, adding more pressure on current water constraints
  - The business challenges are: increasing future cost pressures
  - Potential outcomes include: investment in water recycling and more water-efficient technologies
- About WRI and the Aqueduct Project

Tables and charts

This report includes 6 images and tables including:

The Energy-Water Nexus, water requirements for energy and vice-versa
Global water consumption by fuel type - 2013
2012 US Tight & Shale Gas Reserves versus Baseline Water Stress

Troubled waters ahead? Rising water risk on global energy industry: Image 4
2012 Middle East Onshore Oil Reserves versus Overall Water Quantity Risk
2012 China Coal Mining & Coal-Fired Power Generation versus Baseline Water Stress