...“In one generation we went from riding camels to driving Cadillacs. The way we are spending money today, I fear we will soon be riding camels again.” King Faisal (1904-1975) Introduction Energy, especially crude oil is one of the most valuable commodities in today’s international trade, an indispensable source primarily for transportation and industrial production. This makes oil prices one of the most important elements of today’s economy. In that sense, the Kingdom of Saudi Arabia is on the centre of world economy because of her rich reserves also because the Kingdom has the lowest production cost in the world. Saudi production capacity and the Kingdom’s political stability are key elements for the international oil prices and consequently the world economy. Saudi Arabia is essential to the international oil market also, because she is the swing producer, meaning that she has the ability to affect the price by changing the supply and the other producers’ behaviours. Saudi Arabia is given an example par excellence for the leader in an oligopolistic market by Bhattacharya as the country holds an important market share, Saudi Aramco figures state that Saudi Arabia has 260 billion of oil, which accounts near one fourth of the known reserves, also high flexibility in capacity utilization, low financing requirement thanks to the low cost and it is negligible sensitivity to the changes in the market. Rising world oil prices and Saudi Arabia's capability to quickly respond...
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...a look at Coal in India: current status and outlook The world cannot do without coal. This energy source covers more than one-quarter (28.4% in 2006) of all primary energy consumption and is used to generate nearly 40% of all electricity consumed worldwide. All scenarios and forecasts agree that coal consumption will be growing substantially, driven mostly by China and India. According to the IEA reference scenario (World Energy Outlook 2007), these two countries are expected to account for 82% of the increase in global coal demand by 2030. The outlook for India gives cause for concern: despite a strong domestic coal industry, it could eventually become a major importer. If so, what will the economic, industrial and environmental consequences be? India ranks Number Six in the world for the consumption of primary energy (432 Mtoe in 2006). Its appetite for energy is growing extremely rapidly: it averaged 6.7% a year between 2003 and 20061. Given the demographics, consumption per capita is one of the lowest in the world (512 kgep per capita in 2003), but this figure is steadily increasing. Fig. 1 - Trends in the consumption of commercial primary energy and coal in India 450 400 350 Millions of toe Consumption of primary energy Consumption of coal 300 250 200 150 100 50 0 1980 1985 1990 1995 2000 2005 Consumption rising fast Coal continues to dominate India's energy portfolio Reporting a figure of 238 Mtoe for 2006, India was the Number Three coal consuming country...
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...because the wants for them (the demand) outstrip the various uses for them (the supply). This means that they have to be shared out (distributed) by a mechanism such as price. There are numerous ways in which a resource may be used, an opportunity cost is therefore created whenever one use is preferred over another. If water is used for industrial production, it is not available for agriculture or domestic consumption. Water is a classic example of the distribution problem of scarce resources. There is actually enough water in the world for everyone's needs, and it is not a resource that is ever 'used up' in the way that other resources can be consumed. The amount of water in the earth's water cycle - evaporating from the sea, then falling as precipitation over land - is constant, the problem is one of distribution - it is not always located where it is needed. Read more: http://businesscasestudies.co.uk/nestle/sustainability-and-water/the-basic-economic-problem.html#ixzz1oPYHca55 Case Study of Biofuels and the poor Case Study: India Biofuel Policy and Potential in India Due to increased energy demand, India must import energy to meet current demand. There is potential for biofuels to leverage indigenous sources of inputs, potentially increasing income and opportunities in rural areas. Yet the development of a biofuel sector could increase staple food prices and increase...
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...LNG: An Abundance of Shale and Construction of New Export Terminals Section 1: Introduction The shale boom experienced by the United States since the mid-2000s ushered in unprecedented production and reserves estimates of oil and gas in the lower 48 states. This sustained supply and production has been a result of technological advancement, particularly improved techniques in hydraulic fracturing, has kept prices for natural gas extremely low while crude oil prices have fluctuated and changed over time. One reason for this is the different nature of exportation in the two hydrocarbons. As will be discussed below, the transportation and exporting of natural gas is much different than for crude oil. Natural gas must undergo a liquefaction process in order to travel by specialized cargo ship, the alternative to a pipeline, which adds substantial costs to the activity. There are currently no operational natural gas export terminals in the lower 48 states, but a few are under construction. The large sunk costs will be a large part of our consideration of the exportation of natural gas. The U.S. has traditionally been a net importer of gas, and considering the high upfront costs of building export terminals, the sale of American gas has been isolated almost exclusively to the domestic market. The only exception to this has been to export natural gas only where existing pipelines can carry it, which has limited foreign export to North America. Despite this historical trend...
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...Product Launch Plan Wind-based energy is becoming the most popular and fastest growing form of alternative energy in today’s market. Compact Energy, Inc. (CE) is a newly formed organization with the goal of providing affordable energy solutions to all areas of the world. Currently, CE operates domestically in Eritrea and internationally in Argentina. In this paper, the team creates a product launch of CE’s compact windmill for both the domestic and international market. The team discusses the product, target market, market needs, market potential and growth, competition, marketing objectives and strategy, pricing, marketing communication, distribution strategy, and marketing research. Additionally, the team has completed a SWOT analysis of both the domestic and international market and a quarterly budget indicating the product launch expenses for a period of three years. Compact Energy, Inc. Compact Energy, Inc. is the innovation and creation of Team B, a diligently formed group of business professionals all preparing to improve the quality and availability of alternative energy throughout the world. Headquartered in Eritrea, a small country in Northeast Africa, CE established its most recent location in Argentina. Contributing to its rapid expansion, CE created a business alliance with Strabag International, an environmentally friendly construction organization with unprecedented experience in alternative energy construction and installation (Strabag, 2012). ...
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...1. ENERGY SCENARIO Syllabus Energy Scenario: Commercial and Non-Commercial Energy, Primary Energy Resources, Commercial Energy Production, Final Energy Consumption, Energy Needs of Growing Economy, Long Term Energy Scenario, Energy Pricing, Energy Sector Reforms, Energy and Environment: Air Pollution, Climate Change, Energy Security, Energy Conservation and its Importance, Energy Strategy for the Future, Energy Conservation Act-2001 and its Features. 1.1 Introduction Energy is one of the major inputs for the economic development of any country. In the case of the developing countries, the energy sector assumes a critical importance in view of the everincreasing energy needs requiring huge investments to meet them. Energy can be classified into several types based on the following criteria: • • • Primary and Secondary energy Commercial and Non commercial energy Renewable and Non-Renewable energy 1.2 Primary and Secondary Energy Primary energy sources are those that are either found or stored in nature. Common primary energy sources are coal, oil, natural gas, and biomass (such as wood). Other primary energy sources available include nuclear energy from radioactive substances, thermal energy stored in earth’s interior, and potential energy due to earth’s gravity. The major primary and secondary energy sources are shown in Figure 1.1 Primary energy sources are mostly converted in industrial utilities into secondary energy sources; for example coal, oil or gas converted into...
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...issued a new report that says biofuels do more to create global warming than burning fossil fuels. The reason is that raising the plants to be turned into ethanol and biodiesel releases large volumes of nitrous oxide (N2O), which is 300 times more potent than carbon dioxide (CO2) as a greenhouse gas. Once again, trying to solve humanity's longterm energy and climate problems by hastily grasping at so called green solutions has resulted in the opposite of what eco-activists have claimed. Biofuels have been promoted as a way of reducing the amount of CO2 being pumped into the atmosphere by burning fossil fuels. Plants such as sugar cane, corn (maize), wheat and oilseed rape absorb carbon dioxide as they grow. In theory, burning fuels made from them should have no net effect on the amount of CO2 in the atmosphere and, therefore, should not contribute to global warming. In Europe, efforts have concentrated on the use of rape seed oil for biodiesel while America has focused its efforts on corn in the short term with a vague promise of a shift to non-food cellulose (wood) sources sometime in the future. The ICSU report concludes that the production of biofuels has increased rather than reduced global warming. In particular, it supports the controversial findings published in 2007 by Paul Crutzen of the Max Planck Institute for Chemistry in Mainz, Germany. Dr Crutzen concluded that most analyses had underestimated the impact on global warming of N2O by a factor of three to five. The amount...
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... 3.1 LNG Consumption & Demand – Importing Countries …………………... 4 3.2 LNG Reserves, Production & Supply ……………………………………. 5 3.3.1 Type of Contracts ………………………………………………… 5 3.3.2 Exporting Countries ……………………………………………… 6 3. FUTURE OUTLOOK ……………………………………………………….. 7 4.3 Demand & Import Infrastructure ……………………………………….. 7 4.4 Supply & Production Infrastructure ………………………………..…… 9 4. CONCLUSIONS …………………………………………………………… 9 REFERENCES …………………………………………………………………………… 10 SUMMARY The demand for LNG has grown globally in the recent times and it has grown even more rapidly in the Asia Pacific region where many countries rely solely on imports for all of their gas needs. Gas now accounts for more than a quarter of world’s primary energy consumption. With an increasing emphasis on the environmental issues and the need for cleaner energy, the LNG market is expected to expand at even higher rate in the coming years. This increased demand will put a lot of pressure on the suppliers to explore new fields for development and to enhance their existing production capabilities so as to retain their market share. The purpose of this short essay is to assess the LNG market trends and future outlook in the Asia Pacific region. Also discussed are the efforts being made in terms of infrastructure development (production and storage facilities) in LNG industry. 1. INTRODUCTION The world LNG trade consists of two...
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...Energy Security in India Important facts regarding energy generation capacity and the energy mix for India Source | Percentage | Coal | 57 | Hydro | 18.6 | Renewable | 12.25 | Gas | 8.9 | Nuclear | 2.2 | Oil | 0.56 | Sector | Percentage | State | 40 | Central | 29 | Pvt | 29 | 1. Energy is the prime mover of a country’s economic growth. Availability of energy with required quality of supply is not only key to sustainable development, but the commercial energy also have a parallel impact and influence on the quality of service in the fields of education, health and, in fact, even food security. 2. According to a report by IEA (International Energy Agency), India needs to invest a total of 800 billion dollars in various stages by 2030 to meet its energy demand. India accounts to around 2.4% of the annual world energy production, but on the other hand consumes 3.3% of the annual world energy supply. And this imbalance is estimated to surpass Japan and Russia by 2030 placing India into the third position in terms of annual energy consumption. Therefore, after summing up all the energy issues, energy security has been identified as the only tool to overcome the energy concerns. 3. According to Integrated Energy Policy, for a 9% growth over a sustained period, imports of crude oil in 2031-32 may be between 362-520 million tonnes with import dependence of 91%-94%. For natural gas, it may be 25-135 (Mtoe), which means an import dependence of 20%-57%...
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...Smith ENGB 5142 The Role and Challenges of Renewable Energy Energy is readily available everywhere and comes in various forms. Our universe was created when an infinitely large ball of energy suddenly collapsed and appeared as a small single speck that still contained vast amounts of energy and very low volume. Energy is a property of matter that allows life to occur. Energy sources can be transferred. Stated more eloquently in the First Law of Thermodynamics, “Energy cannot be created nor destroyed, but can change form.” Capturing different forms of universal energy and transferring them for purposeful use is essential for the progress of modern life. Transferring energy sources in methods of energy production is at the root of every developed nation and its renewability is central to economic development. How can we capture and redirect different forms of energy for more practical use? There are numerous ways to do this; many of which are commonplace around the world today. Acquiring certain forms of energy for use may require mining, drilling, combustion technology, photovoltaic panels, wind turbines, and other technologies. In the following paragraphs we will explore the vast world of energy by looking at the disadvantages to nonrenewable energy and taking an in-depth look at renewable energy sources and exploring the challenges associated with employing these types of sources in an effort to create energy sustainability in our world. We will also seek to discover...
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...How the U.S. is Gravitating Toward Energy Independence Cyrus Chiasson English 2000 Section 12 Research Proposal February 24, 2015 Abstract America has strived for energy independence since the 1970s. Until recently, this was viewed as an unattainable dream. Energy independence is defined as producing and supplying all the energy consumed by the citizens of the country. Although, America has a long way to go in order to achieve full energy independence, recent innovations have allowed America to progress significantly towards a more independent energy system. The most imperative of these innovations include a decrease in the amount of oil imported from foreign oil exporters and an increase of domestic shale oil discoveries throughout America. As technology continuously modernizes, the efficiency of American shale oil extractions increase. America is hypothesized to have the ability to supply all its own energy by 2030. If America continues to reduce their petrochemical consumption and reliance on foreign oil, this energy independent milestone will be an approaching, feasible possibility. In this presentation, I will illustrate the constant momentum toward energy independence and how achieving autonomy introduces a surplus of economical possibility that has neglected to exist in previous American history. Rationale The Unites States, along with every other country, would benefit from being as energy independent as possible from foreign oil exporters. Currently...
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...Energy India: Towards Energy Independence 2030 January 2014 Copyright © 2014, by McKinsey & Company, Inc. India: Towards Energy Independence 2030 January 2014 4 India: Towards Energy Independence 2030 Introduction India is the world’s fourth largest economy1 as well as the fourth largest energy consumer. India imports a substantial portion of its energy — 80 per cent of its oil, 18 per cent of its gas, and now even 23 per cent of its coal. As the Indian economy continues to grow, so will its energy consumption, especially as the growth of its manufacturing sector catches up with services and agriculture. With domestic resource production facing various challenges, the general expectation has been that Indian energy imports will continue to grow, and energy security concerns will intensify. The outlook and options for Indian energy independence therefore becomes an important topic. A 2030 outlook is particularly relevant since it is difficult to significantly change energy policy in 5 or 10 years, but almost any boundary conditions can be changed over a 15-year period. Moreover, there have been few if any, in-depth perspectives on this topic for 2030. This white paper builds off the ‘2030 Global Energy Perspective’, McKinsey’s substantial body of research on energy demand and supply, and our understanding of the evolution of the global and Indian energy sectors. We have tried to address some of the basic questions that arise about Indian energy in 2030: Is India’s...
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...ENERGY: Indian Demand- Supply Gap © Zinnov LLC. All Rights Reserved. 138 South Queenscliff Circle, The Woodlands, Texas -77382 Fax 1 419 844 2583 • Phone (US) 1 832 326 3854 • (INDIA) + 91 80 227 3130 Email: pari@zinnov.com W H I T E P A P E R W H I T E P A P E R 2 ENERGY: Indian Demand- Supply Gap Table of Contents ENERGY: Indian Demand- Supply Gap ...................................... 1 1.0 Overview ......................................................................... 3 1.1 Drivers and Inhibitors in Energy Sector..................................... 3 1.2 Major Industry Players............................................................ 4 2.0 Demand Supply Scenario .................................................... 4 2.1 Demand................................................................................ 4 2.2 Supply .................................................................................. 5 3.0 Primary Energy Requirements of India ............................... 6 4.0 Regulatory Framework ....................................................... 9 5.0 Conclusion ........................................................................ 10 Disclaimer: ............................................................................. 11 W H I T E P A P E R Overview ENERGY: Indian Demand- Supply Gap 1.0 Overview Energy sector in India is one of the most challenging sectors for global players given the presence of large profit making...
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...Claude Members of Group * ASSIM A IREH Roméo * DJOUBI TEMCHE Gilles Adam * DYER Claude * * * INTRODUCTION * * * Fully aware of the environmental issues coming with a rapid and intensive economic growth, the Chinese government has made of green energy a top priority. The latest Chinese five year plan sets strong goals in that regard. And wind energy plays a key role in the promotion of green energies. Harvard researchers have put forward that wind power could account for the totality of energy use in China within two decades (Michael B. McElroy). Wind energy could even provide 24 700 TWh of electricity annually which is seven times the current Chinese consumption. China has become the leading power in the field of wind energy. Once leader in that field with a production of 40 GW, the US have been surpassed by China with a production of 42,3 GW in 2010. As the growth in certain countries has considerably slowed down due to the global financial crisis (minus 50% in the US), China’s wind energy market has continued to soar. According to Li Junfeng, secretary general of China Renewable Energy Industry Association (CREIA), China could reach a production of 200 GW by 2020. Even though China’s market is developing incredibly quickly and that the Chinese market offers huge opportunities for Chinese and international companies there still remain important challenges which have to be met. * * * I- Market development: the''...
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...Canada’s energy issues Introduction Canada is the 7th largest energy consumer in the world. Canada is one of the world's five largest energy producers and is also the world's fifth-largest producer of dry natural gas. It stands out as the largest foreign supplier of energy to the United States. However, economic and political considerations are leading Canada to consider ways to diversify its trading partners, especially by expanding ties with emerging markets in Asia. Canada is endowed with an exceptionally rich and varied set of natural resources, ranking among the five largest energy producers in the world, behind China, the United States, Russia, and Saudi Arabia. Canada produced an estimated 19 quadrillion British thermal units (Btu) of primary energy in 2012. Canada was the world's seventh largest energy consumer after China, the United States, Russia, India, Japan, and Germany. Canada has a population of more than 35 million (37th largest in the world) with a gross domestic product (GDP) on a purchasing power parity basis of $1,526 billion (13th largest in the world) in 2013. Canada's economy is relatively energy intensive compared to other industrialised countries, and is largely fueled by petroleum, natural gas, and hydroelectricity. Oil Canada is the world's fifth-largest oil producer, and virtually all of its crude oil exports are directed to U.S. refineries. Canada is a major onshore and offshore producer of crude oil, and the recent growth in its liquid...
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