Lucia van Geuns (CIEP) will discuss various macroeconomic and geopolitical aspects of the international energy markets.

The International Energy Agency estimates that world energy demand will grow by 40% over the next twenty-five years. Demand for energy will be particularly strong in emerging market economies. Alternative energy generation is growing too slow to meet existing or growing demands for energy. The need for sustained supplies of hydrocarbons at accessible prices therefore continues. How can the demand for oil and gas be satisfied? The world is not running out of hydrocarbons in the near and medium term, but substantial investments and continuing technological innovations are required to increase the world oil production capacity. A large proportion of existing reserves is located in politically unstable regions and many oil reserves are under the control of state monopolies. Investing in exploration and production capacity is imperative, but destinations for investment are limited. OPEC countries give limited access to private/foreign parties since they have nationalised their oil industry. Only some 35% of world oil reserves are accessible for International Oil Companies (IOCs). Furthermore, countries open to investment (a.o. Russia, West-Africa) have challenging investment climates, creating risks for investors. Changing gas market conditions, the tightening global oil supply, and demand growth have resulted in an ever increasing interest in the production of ‘difficult’ hydrocarbons. North America is at the forefront of unconventional exploration and production. With the recent run up in commodity prices these resources can be economically produced.
Speaker info 

Background media:
World Energy Outlook (pdf)

Video: Michael Klare – Geopolitical balance of energy power (CitizEnergy)