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THE CHANGING GLOBAL ENERGY MARKET AND IMPACT ON … · 10.03.2013 · •U.S. Reversing 40 Years...
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THE CHANGING GLOBAL ENERGY MARKET AND IMPACT ON CONSTRUCTION Mark Peters Publisher Oil & Gas Financial Journal www.ogfj.com
Transcript of THE CHANGING GLOBAL ENERGY MARKET AND IMPACT ON … · 10.03.2013 · •U.S. Reversing 40 Years...
THE CHANGING GLOBAL ENERGY MARKET AND IMPACT ON CONSTRUCTION
Mark Peters
Publisher
Oil & Gas Financial Journal
www.ogfj.com
• Tight Oil and Gas
• Climate Change
• Energy Nationalism
• Growth in World Population
• EuroZone
• China and India
• Energy Security
• Overcapacity
• Game Changer: Shale
• The “Golden Age” of Gas
FACTORS SHAPING ENERGY EXPANSION FOR THE NEXT DECADE:
QUICK LOOK AT OIL PRICES
CRUDE PRODUCTION BUCKING 40 YEAR TREND
• U.S. Reversing 40 Years of oil production declines
• Oil Prices appear to be range-bound
• U.S. natural gas poised for long-term recovery
• Recent prediction that U.S. will surpass Saudi
Arabia as largest oil producer by IEA
• U.S. already surpassed Russia as largest gas
producer
• Potential for U.S. to become energy independent
• Implications go way beyond energy
CHANGES IN U.S. O&G
• Peak Oil
• Climate Change
• Energy Nationalism
• Growth in World Population
• EuroZone
• 2012 Election
• China and India
• Energy Security
• Game Changer: Shale
• The “Golden Age” of Gas
U.S. ENERGY GROWTH IS CHANGING MANY OF THE CONCERNS OF THE LAST DECADE:
PROOF OF CLIMATE CHANGE
CLIMATE CHANGE
CONSUMPTION
Source: Cagle Cartoons, Week of June 17-23, 2012
INDUSTRY TAX RATES
Source: CEE, M.M. Foss, 9/25/2012
• Economic Nationalism
• Growth in Population
• Consumption
CHINA & INDIA
ENERGY SECURITY
Source: T. Boone Pickens, March 2012
OVERCAPACITY
“CNG IN A BOX” TM
Source: GE, AP file photo/Douglas C. Pizac
RE-FUELING LOCATIONS IN THE U.S.
THE SEVEN BIG SHALES
Source: Oil & Gas Financial Journal, Warlick International Article, August 2012
EAGLE FORD
Source: Oil & Gas Financial Journal Unconventional Resources Center, August 2012
MARCELLUS
Source: Oil & Gas Financial Journal Unconventional Resources Center, August 2012
PERMIAN
Source: Oil & Gas Financial Journal Unconventional Resources Center, August 2012
SHALE PLAYS ARE MORE PRODUCTIVE
A NATURAL GAS SUPER SPIKE 2016?
15.0
16.0
17.0
18.0
19.0
20.0
21.0
22.0
23.0
24.0
25.0
Average Annual Industrial Demand
Source: Energy Information Administration May 2012 & RJ Estimates
*Includes LNG export plants operational
• More refining capacity added to handle increased oil
production and potential for export
• Additional pipelines and gas processing facilities will be
needed to handle changes in the flow of raw material
and finished products
• Potential GTL and LNG export from U.S.
• Petrochemical facilities upgraded and expanded and
potential for new plants in U.S. Northeast
• U.S. economy will benefit from lowered trade deficit and
increase in manufacturing base
• U.S. $ Goes Higher
INFRASTRUCTURE CHANGES:
THE CHANGING GLOBAL ENERGY MARKET AND IMPACT ON CONSTRUCTION
Mark Peters
Publisher
Oil & Gas Financial Journal
www.ogfj.com
