The first step of the Reference Approach is to estimate apparent consumption of fuels within the country. This requires a supply balance of primary and secondary fuels (fuels produced, imported, exported, used in international transport (bunker fuels) and stored or removed from stocks). In this way carbon is brought into the country from energy production and imports (adjusted for stock changes) and moved out of the country through exports and international bunkers. In order to avoid double counting it is important to distinguish between primary fuels, which are fuels found in nature such as coal, crude oil and natural gas, and secondary fuels or fuel products, such as gasoline and lubricants, which are derived from primary fuels. A complete list of fuels is provided in Section 22.214.171.124 of the Energy Volume Introduction chapter.
To calculate the supply of fuels to the country, the following data are required for each fuel and inventory year:
• the amounts of primary fuels produced1 (production of secondary fuels and fuel products is not included);
• the amounts of primary and secondary fuels imported;
• the amounts of primary and secondary fuels exported;
• the amounts of primary and secondary fuels used in international bunkers;
• the net increases or decreases in stocks of primary and secondary fuels.
The apparent consumption of a primary fuel is, therefore, calculated from the above data as:
Equation 6.2 Apparent consumption of primary fuel
Apparent Consumption fuel = Production fuel + Importsfuel - Exportsfuel
- International Bunkers fuel - Stock Change ^ l
An increase in stocks is a positive stock change which withdraws supply from consumption. A stock reduction is a negative stock change which, when subtracted in the equation, causes an increase in apparent consumption.
The total apparent consumption of primary fuels will be the sum of the apparent consumptions for each primary fuel.
Apparent consumption of secondary fuels should be added to apparent consumption of primary fuels. The production (or manufacture) of secondary fuels should be ignored in the calculations because the carbon in these fuels is already included in the supply of primary fuels from which they were derived; for instance, the estimate for apparent consumption of crude oil already contains the carbon from which gasoline would be refined. Apparent consumption of a secondary fuel is calculated as follows:
1 Production of natural gas is measured after purification and extraction of NGLs and sulphur. Extraction losses and quantities re-injected, vented or flared are not included. Production of coal includes the quantities extracted or produced calculated after any operation for removal of inert matter. Production of oil includes marketable production and excludes volumes returned to formation.
Equation 6.3 Apparent consumption of secondary fuel
Apparent Consumption fuel = Imports fuei - Exports fuei
- International Bunkers uuel - Stock Change
Note that this calculation can result in negative numbers for apparent consumption of a given fuel. This is possible and it indicates a net export or stock increase of that fuel in the country.
The total apparent consumption of secondary fuels will be the sum of the apparent consumptions for each secondary fuel.
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