Energy Industry Observation Bi-Monthly Newsletter (Issue 1)

Date: Aug 2014

Global Energy Overview

What You Should Know about the Global Oil Market
In 2013, the demand for oil from non-OECD countries (as a percentage of the global total) grew to 50%, an increase from about 37% in 2000. The demand for oil in China doubled to an average of 9.98 million barrels per day in 2013 from an average of 4.6 million barrels per day in 2000, the largest rise in demand in the world. Despite the lower level of per capita oil consumption in emerging markets such as China and India, these countries continue to drive the growth in oil demand due to rising income levels.
Boost in Energy Efficiency: Trends in Global Energy Investment
The International Energy Agency (IEA) has renewed its world energy investment outlook for the first time in over 10 years. According to the IEA’s Report, the investment required in the world energy sector will need to reach $48 trillion to supply the world’s energy requirements by 2035. A total of $40 trillion of that investment will be used to develop and maintain energy infrastructure facilities, and the remaining $8 trillion will go to improving energy efficiency.

Energy Watch by Regions

Oil & Gas Sector Mergers and Acquisitions: Asian Focus
During the 14 years from 1Q 1999 to 4Q 2013, the global oil & gas sector’s merger and acquisition transactions showed a buoyant trend. In the coming 1-2 years, international petroleum companies will sell their oil & gas assets in bulk. Asian oil companies are building up assets and will start to examine the oil & gas assets that they own, and sell those assets that do not conform to their business development strategy, while also acquiring a significant amount of new assets.
Developing Solar Energy in the Middle East
The Middle East has traditionally been a key region for the export of oil and is crowded with oil producing giants. Many people believe that it is not feasible to promote solar energy development in such an area. However, a survey on the Middle East market shows that a number of Middle Eastern countries, including the UAE and Saudi Arabia, have already formulated plans for solar energy development.
All-Energy Brazil
Brazil takes pride in the rapid progress of new energy development. Mr. Marco Tulio S. Cabral, Head of the Sustainable Development, Science & Technology Section of Brazil, says that Brazil has “massive offshore oil and gas reserves, affluent raw materials for producing biofuels, plentiful water resources and wind power, as well as inexhaustible solar energy resources. Other countries may feel contented if they could seek out just one alternative source aside from fossil fuel to support energy consumption, while Brazil has more than five new energy resource alternatives”.

Energy Company Updates

GE Bids to Acquire Alstom
General Electric's (GE) acquisition of Alstom stirred up confrontation between the French Government and General Electric.
Truth about Shenhua Group Fraud
A whistle-blower letter entitled Report on Law-violating Operations in Illegal Coal Trader By Collusion was rapidly disseminated over the internet on 2 April 2014.
China Coal Group Suspected of Material Breach of Land Use Related Laws
China Coal Group started construction without obtaining necessary approval for large project. This is the most serious violation of its kind among domestic listed companies.
Tesla Allows Use of Patents
Tesla will allow its competitors to use its patent, in the hope such a risky move will quicken cost reduction and thereby creating a larger market for electric vehicles.
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