By Aarkstore News Service: Global energy sector is at a crucial juncture with the ongoing financial crisis adversely affecting the key growth many energy industries. While many of the short term investments in the ongoing energy projects worldwide would continue, potential long term investments in new projects and expansion plans will be delayed due to the credit crisis. However the various geopolitical regions are expected to show dissimilar trends with regard to the growth in conventional energy sector and alternative energy sectors. The new report ‘Top Ten Global Energy Trends of 2009’ provides in-depth analysis of ten most important trends in the global energy industry and its key drivers.
The impact of financial crisis will continue in the global energy sector
The global energy sector has been facing major challenges due to the global financial slowdown. The US financial crisis has affected the financial institutions around the world and also adversely impacted the potential investments in the global energy industry. Many energy companies are facing difficulties in raising funds for investments for new energy projects due to the crisis in global credit markets. In the global energy sector the impacts of credit crisis is expected to reverberate for the months ahead in the form of crude oil demand decline, price fluctuation and delays in major energy investments.
Price volatility to continue in the global energy sector
Oil price which reached above $147 per barrel declined to less than $ 65 per barrel in the fourth quarter of 2008. The crude oil price fluctuation will continue to be visible as the demand for oil has declined in some of the OECD countries especially United States. Though the 5 percent out put cut by OPEC countries would not make any significant increase in the global crude oil price, can potentially raise concern among the import dependent countries.
Unconventional Energy sector investment to slowdown in the backdrop of oil price fluctuation
Globally, unconventional energy sector witnessed an unprecedented growth due to the rising crude oil price. However, many unconventional energy exploration projects are adversely affected by the falling crude oil price as the profitability these projects was heavily dependent on the oil price. Some of the planned expansions of unconventional energy projects have been delayed. This trend is expected to continue through the coming months.
Combination of rising consumption in Developing economies, supply and trade to contribute global oil industry growth
Developing economies will evince significant demand growth the coming years. India and China which are currently consuming about 130 million tons and 368 million tons respectively will play the key role in the oil demand growth from developing Asian countries. Most of the demand growth will be seen in the developing countries especially in the growing economies in the Asia Pacific region. The oil and gas consumption in many of the producing countries such as Middle East are also expected to increase as a continuing trend set by the higher income through windfall oil revenue for the past many months.
Natural gas sector to grow, demand to increase worldwide
As demand for natural gas is growing in many countries their dependence over gas producing countries such as Russia is increasing alarmingly. With the largest gas reserve in the world Russia will play a key role in global natural gas export. The highest growth in demand for natural gas in the importing countries is expected to come from electricity generation sector as natural gas is a much cleaner fuel than coal.
Nuclear energy to play increasingly important role in the global power sector
Demand for new nuclear power generation facilities increased significantly in the backdrop of growing concerns on conventional fuel sectors. Many nuclear power generating countries are planning to increase their installed capacity by building new power reactors. Moreover about 30 countries are in the advanced phase of planning for building nuclear power generation facilities. This trend is expected to contribute to the growth of uranium mining industry, power generation and affiliated industries in the years ahead.
Coal will continue to be the highest consumed primary energy
coal would continue to be one of the largest consumed fuels in many countries, especially developing economies such as China and India. Coal currently provides more than 25 percent of the total primary energy needs and is responsible for generating almost 40 percent of electricity produced globally. The consumption of coal is expected to reach 3530.5 million tons of oil equivalents (mmtoe) in 2009, and about 3680 mmtoe by the year 2010.
Domestic / indigenous energy supply to increase in major import dependent countries
Due to the increasing concerns about potential vulnerabilities of import dependency, many oil and natural gas importing countries are increasingly relying on the domestic resources. However the regional pattern of investment and the energy sectors that are developed domestically will not see any similar trend. On the one hand significant focus would be given to alternative and renewable energy development in developed economies. In many of the developing economies, conventional hydrocarbons being key energy sources, domestic hydrocarbon exploration would evince greater attention.
Clean energy projects to look more attractive in the backdrop of concerns related to hydrocarbon sector
Clean energy development in the world is expected to evince notable growth in the years to come. The increasing concerns about energy related emissions will be the key driver in the clean energy technology development in many countries. One of the major impacts of the problems arises out of environmental damage and other energy related emissions is the economic consequences that causes to the respective national economies.
Electricity generation capacity worldwide to grow
Despite the challenges faced by the global energy industry electricity generation capacity is expected to increase significantly. The increasing demand for electricity in the developed as well as developing economies will also require newer power producing facilities. The growth in installed capacity will be a key trend in many of the developing countries as there is a growing demand from various power consuming industries.
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