Deloitte's Energy Predictions 2011 report focuses on sustainability in challenging conditions |
New York, 19 October 2010 – Deloitte’s Global Energy & Resources Group today published its Energy Predictions 2011 report, the second year it has published its predictions for the year ahead. The report is based on in-depth interviews with clients, industry analysts, and senior energy practitioners from Deloitte member firms around the world.
Even as the global economic downturn begins to ease, the energy sector is still likely to experience challenging conditions entering 2011. Serving as a global and unified measure of economic recovery, the price of oil and the strength and sustainability of the recovery will impact the ways in which all forms of energy are produced and consumed.
“Energy plays a pivotal role in driving the global economy,” says Peter Bommel, Deloitte Touche Tohmatsu Limited Global Energy & Resources Industry Leader. “Anticipating the course of the energy and resources sector over the next twelve months is not easy, but Deloitte’s Energy Predictions Report aims to stimulate debate, inform of possible industry directions, and help identify opportunities and potential courses of action.”
Emerging markets break out as the fastest-growing area for M&A
- M&A activity in the energy industry appears to be occurring in waves, with the oil and gas companies from emerging markets leading the way. A second wave of M&A is now occurring that involves state-owned companies from Russia, South Korea, Brazil, and Malaysia. The third wave, which is only now beginning to take shape, involves national oil companies from India and the CIS region.
- Moving forward, a company’s post-merger integration skills will be paramount, particularly in emerging markets where complex financings, cultural differences, and uncertain regulatory environments often impede the realization of anticipated synergies.
- China’s growing partnerships with resource-rich nations will likely provide an economic boost to the republic as well as to the global economy in the years ahead. These partnerships will have a positive effect on energy markets as well as on infrastructure and industry.
Prospects for renewables are looking up as solar goes mainstream
- In 2011 and beyond, solar technologies will increasingly trickle down from industrial users to be embraced by residential consumers and small businesses.
The water-energy nexus grows in importance
- Sustainability considerations are not only becoming key inputs for business decisions, but also decisive factors affecting competition worldwide.
E&P operations advance by technological leaps and bounds
- The recent series of environmental, health, and safety incidents in the oil and gas industry will likely result in greater governmental oversight of all types of energy production.
- The boom in unconventional natural gas is a game-changing event that is likely to continue in the short-term. However, its impact may not be as loud or as long as first anticipated, due to the increase in environmental activism based on government investigations into the hazards of hydraulic fracturing.
Electric cars give auto markets a jolt
- Consumers have always had plenty of options concerning the look and feel of their cars and trucks, but they will soon have just as many choices concerning what powers them.
- Hybrid electric vehicles will likely remain popular, but plug-in electric hybrids and pure electric vehicles are also likely to proliferate based on consumer demand.
To read the full report, visit www.deloitte.com/energypredictions2011.
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Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.