Economic backwardness and resistance to innovation: the case of natural gas in Spain

Abstract

A comparative study of present energy consumption in Spain demonstrates the predominance of petroleum products over natural gas. The two principal reasons for this situation are: the low per capita consumption of gas based fuels and the preference for bottled butane gas, a petroleum derived product little used elsewhere.

The widespread use of natural gas in Europe dates from the early 1960s. Its introduction was favoured by the extensive pipeline network already existing, and the high number of consumers of gas based fuels. The considerable increase in the consumption of bituminous coal gas from the middle of the nineteenth century onward proved to be a decisive catalytic factor in the rapid spread of natural gas one hundred years later.

In Spain, on the other hand, the development of the traditional gas industry had been sketchy and uneven right from the outset. It was only in Catalonia that a relatively high number of gas factories were established. The advent of electricity towards the end of the last century paralized the expansion of gas at a time when only 75 Spanish settlements were furnished with piped gas. No improvements were carried out in the first half of this century. Gas consumption and its distribution infrastructure were maintained at relatively low levels. This was in fact a reflexion of the slow and tardy nature of Spanish industrial development prior to 1960.

The changed situation after the «Stabilization Plan» of 1959 found piped gas in totally unsatisfactory conditions to meet increasing demand. The politicians' answer was the massive commercialization of petroleum-derived liquified gas (butane and propane) for which the infrastructure requirements are limited to a number of bottling plants and a distribution system by lorry. In such circumstances, natural gas, which was at this period being adopted in many European countries, was introduced only in Catalonia, the one region with sufficient potential consumption and an adequate distribution network.

The low price petroleum in the 1960s did not encourage any possible modifications in the pattern of Spanish energy consumption to bring it into line with other countries. Hence, when petroleum prices rose spectacularly between 1973 and 1979, Spain was among the countries most dependent upon petroleum, and so suffered immediate effects on the balance of payments and on the Spanish economy in general.

In conclusion, the very limited and uneven development of the Spanish economy since the nineteenth century, and the subsequent deficiencies in infrastructure, have retarded the adoption of new techniques in the energy sector and have contributed, in this way, to increment the negative repercussions of the international crisis in Spain.