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The World of Energy

Chapter 1 ± World Energy Overview

1.1. The Nature of Energy

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Why It Is Important for the LNG Professionals to
Understand the World of Energy

† Energy is interchangeable and compete one another

† The world current energy is mostly Non Renewables, very limited and fastly

† Energy is Global & Geopolitical commodity which can easily (and currently)
become the Strategic Weapon in the world power struggle
„ The Gulbekian Red Lines, Israel & the Middle East conflict (The Prize)
„ The fall of German & Japan in the WW-II
„ Recent Iraq & Iran conflict
„ Japan ± Russia Sakhalin II LNG Project dispute
„ Indonesia Natuna LNG Project & South China Sea conflict
„ Indonesia Malaysia Sipadan & Ambalat conflict
„ Indonesia Australia Timor Gap conflict & Timor independence

† LNG Plant is the only energy facilities that cannot import feedstock when the
nearby gas reserve depleted

† Indonesia (+ Phillipine & Japan) is archipelago country where LNG and its sea
routes can become The Pipeline of The Nation

† Badak LNG is probably the only LNG Plant in the world located in the vicinity of
major Coal Reserve & very potential CBM (Coal Bed Methabe) resources which
open the potential to a feedstock diversification or total business diversification

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Oil & Gas still the most important energy

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Can we afford to be wrong?

NASA photo, Natural Resources Defense Council

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Nature of Energy

† Energy is all around you!

„ You can hear energy as sound.
„ You can see energy as light.
„ And you can feel it as wind.

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Nature of Energy
† You use energy
when you:
„ hit a softball.
„ lift your book
„ compress a

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Nature of Energy

Living organisms need energy for growth and


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Nature of Energy

† Energy is involved
„ a bird flies.
„ a bomb explodes.
„ rain falls from the
„ electricity flows in
a wire.

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Nature of Energy

† What is energy that it can be involved in so

many different activities?
„ Energy can be defined as the ability to
do work.
„ If an object or organism does work
(exerts a force over a distance to move
an object) the object or organism uses

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Nature of Energy

† Because of the direct connection between

energy and work, energy is measured in
the same unit as work: joules (J)

† In addition to using energy to do work,

objects gain energy because work is being
done on them.

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