Reforma Constitucional 1993.

Hong Kong is a member of the Far East region according to United Nations (1971) classification (see Table I). Within the region it has the second highest per capita energy consumption after Japan. Hong Kong’s per capita consump­ tion is three times greater than that of the so-called developing countries and half that of the world as a whole. Hong Kong is experiencing a rapid growth in energy consumption. The annual growth rate over the 17-year period, 1954— 1971 was 4.6%, and over the 7-year period, 1964—1971 was 8.9% per annum. According to United Nations (1973) data, the world consumption of energy was increasing at 3.4% per annum, the United States consumption at 2.7% and Australia at 2.5% per annum during the same period. Within the region Hong Kong’s growth parallels that of Korea and Japan, each with 9% increase per annum, and it is significantly greater than the regional average annual increase in energy consumption of 6.5%.

Hong Kong is totally dependent on outside sources of energy for its needs. As a non-producer it must bargain for energy on the world market. Fig.2 shows the major sources of energy for Hong Kong in 1971. The major sup­ pliers of energy were the Middle East countries of Bahrain, Kuwait, Iran and Saudi Arabia together contributing nearly half of the total requirements. Singapore supplies the bulk of the remainder, with the Philippines, the only other sizable supplier, providing more than 4% of the total. Table II lists the respective exporters of fuel to Hong Kong by fuel type. Within the region the only producer of significance which supplies Hong Kong is Indonesia, and its exports to Hong Kong are comparatively minor. Thus, the majority of fuels coming to Hong Kong from within the region are originally from the Middle East, passing to Singapore, Japan, the Philippines and South Korea for refining in the first instance. Hong Kong is, of course, as much dependent on the Middle East for fuel supplies as are these, since in a fuel crisis the proximity of the regional suppliers does not assure continued supplies.

The Hong Kong Government is considering the development of a refinery- petrochemical complex, ostensibly to increase the stability of its energy supplies. This development will not alter Hong Kong’s dependency on petroleum prod­ ucts from the Middle East.

T A B L E I

G lobal a n d regional c o m p a r i s o n o f energy c o n s u m p t i o n with H o n g K ong, 1971

Place MJ X 1 0 ’

per c a p i t a 1 *

World 59

D evelo ped c o u n tr ie s* * 183 D ev elo pin g coun tries* * * 11

U n ited S ta te s 34 2

A ustr alia 166

Far East, average* 15

J a p a n 99 S ingapore 26 H ong K o n g 3 1 2* K orea 26 Malaysia 14 Philip pines 9 T h a il a n d 10 China 17 Macau 9 V ie tn a m R e p u b li c 10 India 6 In d o n e s ia 4 B urm a 2 K h m e r R e p u b li c 0.7 N epal 0.3

* F a r E ast in cludes J a p a n , R y u k y u Island, A fg hanis ta n, Brunei, B u rm a , K h m e r R epublic, Sri L a n k a , H ong K ong, In dia, Indones ia, West Iran, K ore an R e p u b li c , Laos, M acau , West Malaysia, S abah, S a ra w a k , Nepal, Pakistan, Philippines, P o rtu g u e se T im o r , Sin gapore, T h a ila n d , V ie tn a m e s e R e p u b lic .

**T he D ev e lo p e d M a r k e t e c o n o m i e s o f Australia, C anada, Israel, J a p a n , N ew Zeala nd, S o u th A frica, U n ite d S ta t e s a n d West E u ro p e (inc. Yugoslavia).

***The D ev elo p in g M a r k e t e c o n o m i e s o f Africa, C aribbean A m e ric a , N o r t h A m erica, o t h e r A m e ric a , M iddle East (inc. T u rk e y ), Far East a nd Oceania.

'^D ata derived f r o m ‘W orld Energy S u p p lies’ 1 9 6 8 —19 7 1 , S tatis tical Papers series J , No. 16, U n ited N a tio n s , 1 9 7 3 . 1 kg o f coal equivalent has been ta k e n as r o u g h l y 3 0 .5 9 MJ.

2*Per c a p it a figure fo r Hong K o n g 1971 arrived at i n d e p e n d e n tly is 3 1 .5 c o m p a r e d with 3 1 .0 9 . This d i f f e r e n c e o f 1.3% is p ro b a b l y due to dif ferences in c o n v e rs io n factors in use

L O C A L E N E R G Y C O N F I G U R A T I O N

Table II shows the various energy forms which are imported and retained in Hong Kong, discounting bunker fuels and exports. The data presented in the table differs slightly from the import statistics provided by the trade sec­ tion of the Hong Kong Census and Statistics Department. It is more accurate to obtain figures of actual use in Hong Kong. These Eire provided by figures for fuels released from bond which are recorded on a monthly basis for excise purposes. Table III is an analysis of energy used in 1971 by amount and per­ centage of the total energy consumption.

s o u t h H O N G KONG., T H A I L A N D 0 .4 2*/, / P H U L I P I N E S 4 . 2 6 % M I D D L E EA ST > I N D O N E S I A 0 . 4 9

Fig.2. Sources of energy for Hong Kong, 1971, indicating the relative importance of each supplier.

Table IV is th e energy m atrix for 1971 showing a division o f end-use by- sectors. It includes th e to ta l am ount of energy passing through Hong Kong in th a t year in bunker fuels and exports, as well as the fuels actually used in Hong Kong, and details th e conversion of prim ary energy to secondary energy in th e form of tow n gas and electricity. The am ounts actually sold to consum ers of these form s of secondary energy are specified in brackets and do n o t figure in th e first balance presented by the m atrix. Sources for th e inform ation used to com pile the m atrix, which is th e basis of much of th e d a ta presentation th ro u g h o u t the paper, are listed as footnotes.

The figures in Table III show clearly that gasoils and fuel oils make up more than 85% of the total energy use, excluding bunkers and exports, comprising 64 and 21.5% respectively. Of considerably less importance in proportion are kerosenes, 6.2%, motor spirits, 4.2% and liquefied petroleum gas, 1.8%. Total solid fuels provide no more than 2% of the total consumption, even given a generous estimate, using Trade Statistics (1972) of firewood consumed which is locally grown or scavenged as scrap building timber. Fig.3 is a diagrammatic representation of the energy matrix in flow chart form. It shows clearly the high proportion of transport energy which is essentially a direct throughput in the system as overseas bunkers, and highlights other significant features of the local energy flow, such as the loss of primary energy in conversion to town gas and electricity. The comparative volume of use by each sector is readily seen, and will be discussed in more detail elsewhere. (Newcombe, 1975).

Table V presents a further breakdown for fuel oil use for 1971. Fuel oil is the major energy form used to generate electricity; of the locally used fuel oil, 81% is used in this manner. Fuel oil is used mainly to fire pressure generating equipment and only relatively small amounts are used by direct combustion such as in the iron, steel and basic metals industries, or in the assisted incinera­ tion of refuse for the Urban Services Department of Government. Apart from fuel oil used to generate electricity, most is used in industry, comprising 14.9% of the total — the remainder being made up of 1.5% for commercial and about 2.3% for gas production. Other very minor end-uses include local marine transport for tugs and salvage vessels. The textile industry uses 73% of all fuel oil used industrially and about 11% of all fuel oil consumption in Hong Kong.

Table VI shows an analysis of the end-use of gasoil, diesel fuel and distil­ lates. Transport use accounts for 60.2% of the total of this category of fuels. A detailed analysis of gasoil use accompanies a description of energy use in transport in Newcombe (1975). Outside of transport use, 21.2% is used com­ mercially, 8.3% industrially, 5.1% is exported and 2.9% is used for power generation. The function of this category of fuel in power generation is as an auxiliary fuel, except in the case of Cheung Chau Electric Company which uses diesel fuel exclusively. However, the company used less than 1 500 tonnes of diesel oil in 1971 (R.J. Purves, personal communication, 1974).

Restaurants are the largest commercial users of diesel fuels, consuming about 63% of total commercial diesel and about 19% of all gasoil and diesel fuel consumption. Diesel fuel for restaurants is pressurised sufficiently to provide a fine spray at the point of combustion giving an open flame for cooking purposes.