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Standard Life Investments, the global investment manager, believes that substantial changes to energy markets in recent years could significantly influence the development and shape of the global economy. Regional energy markets continue to be more important than international ones, so the optimal energy mix will still vary from country to country.
The latest edition of Global Perspective examines issues related to supply and demand for global energy, and what this may mean for the future including international pricing, the economic impact of shale gas and its implications for an industrial renaissance in the US, and how the renewables race is shaping up.
Frances Hudson, Global Thematic Strategist, Standard Life Investments said:
“The energy industry is evolving. Alongside the development of conventional, if increasingly expensive, deep sea oil fields, such as in Brazil, the shale gas revolution and progress in renewable technology are starting to make their mark.
“However, there are reservations about whether and on what timescale shale will become a global phenomenon, despite recent headlines with claims of the shale gas boom leading an industrial renaissance in North America. Economic impact assessments suggest that the effects in the US, so far, have been modest both at county and national levels."
Three of the key points found are:
- The US is now self-sufficient in gas, while still importing oil. Optimistic projections are that it could be self-sufficient in oil as well as early as 2020. That would be a game changer.
- Energy efficiency is declining, a headwind to the global economy.
- The effects of the shale gas and tight oil ‘revolution’ are more modest than commentators generally claim.
For full details click here.
For the full Global Perspective article, please click here.
