Global Energy Predictions 2011 - the fog is lifting over the global economy and recovery is underwayDOWNLOAD |
Monday, 14 March 2011: The 2011 global Energy Predictions for the energy & resources sector today announced the fog is lifting over the global economy and highlights a recovery is clearly underway to meet the insatiable demand for energy within Australia and by countries such as China, the United States, Brazil, India and Russia.
The global predictions for the year ahead show that other markets are showing signs of recovery and there is no significant economy that remains mired in recession. Recent bearish economic indicators notwithstanding, oil prices are pushing upward, testing the upper limits of the US$105/per barrel range. Oil’s price range and the strength and sustainability of the recovery, illustrates the measure of the global and unified economic recovery which saw prices spike after the Middle East unrest.
“The energy sector is undergoing unprecedented change – investment and carbon uncertainty, together with an increased priority on clean-energy developments, and the re-emergence of nuclear technologies are all key challenges for the industry. This combined with government mandates to develop renewable energy sources, availability of reliable water sources, the war for talent, and the drive towards industry innovation, creates a dynamic and challenging environment.” said Stephen Reid, Partner Corporate Finance.
The Energy Predictions view of the year ahead can be useful when formulating strategy since they are based on a wide array of views and inputs. These inputs can stimulate debate, inform of possible industry directions and even assist corporate management identify potential courses of action.
The methodology for developing this set of predictions included in-depth interviews with clients, industry analysts and the most senior energy practitioners from Deloitte member firms around the world.
“As the major global economies recovery, the energy sector is still likely to experience challenging conditions for the remainder of 2011. It should be remembered how very important the role energy plays in driving the global economy,” said Stephen Reid.
The methodology for developing this set of predictions included in-depth interviews with clients, industry analysts and the most senior energy practitioners from Deloitte member firms around the world.
The Global Energy Predictions report explored the following:
- M&A - Emerging markets. Companies targeting acquisitions in emerging markets will need to improve their abilities to navigate all sorts of merger-related risks.
- Refining - reflects on the Asian economic growth and the refining industry moving East.
- Nuclear and Renewable – issues related to grid integration as well as energy storage, transmission and distribution will need to be resolved.
- Water usage - Worldwide water management during the fuel lifecycle will become increasingly important.
- Petroleum exploration and production – support of new technology is paramount to maintaining industry supremacy.
- Electric cars - the shift is being driven largely by technological advances such as the capacity to store and use energy in batteries in a cost-effective way.
- The ‘China Effect’- China’s growing partnerships with resource rich nations will likely provide an economic boost to the country itself and to the global economy in the years ahead.
- Job Creation - without a continuous means of developing talent, even an economy based on renewable energy will not be sustainable.
- Emergence of gas as a preferred source of energy.
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Energy Predictions 2011
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Contacts
- Name:
- Dawn Willis
- Company:
- Deloitte Australia
- Job Title:
- Corporate Affairs and Communications Manager
- Phone:
- Tel: +61 2 9322 5562
- dawillis@deloitte.com.au
- Name:
- Stephen Reid
- Company:
- Deloitte Australia
- Job Title:
- Partner, National Mining Leader
- Phone:
- Tel: +61 3 9671 7506
- stereid@deloitte.com.au