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Global perspective 

The issues below have been identified as the priority issues facing the Energy industry. This listing has been developed through conversations with our clients around the world and with industry associations. 

Growth


A. Increasing Demand from Emerging Markets: One of the important characteristics of the global energy markets is the high growth rate of energy consumption in emerging markets. Over the past decade, while energy consumption (average annual growth rate of global total final energy consumption) in the Organization for Economic Cooperation and Development (OECD) countries declined, it grew over two percent in non-OECD countries.


B. Sustainability: The world faces the major challenge of meeting the rising demand for energy, while addressing the environmental impacts associated with the use of energy. The global issue of climate change has shifted the focus of businesses, particularly energy companies, on the need for sustainable development.

 
C. Market Entry and Expansion: As the traditional markets for the Energy and Natural Resources (ENR) sector saturate, emerging markets in Asia (led by China and India), Latin America and Eastern European countries present growth opportunity for ENR companies.


Performance


D. Inadequate Infrastructure: Rising demand for energy has created the need for major new investments in energy infrastructure. The International Energy Agency (IAE) has stressed the need to invest about US$33 trillion in energy supply infrastructure over 2011–35.


E. Performance improvement/managing operational efficiency: In the first half of 2011, major oil and gas companies witnessed an increase in profits, driven by high oil prices. However, the economic growth in the US and the Eurozone remains uncertain, and a slowdown in oil demand in China is also expected due to anticipated slowdown in the country's economy (IEA forecast).


F. Trading: Energy and Emissions: Energy trading involves direct sale of electricity to end-users, wholesale or retail, through market traders who may be generators themselves, or may buy electricity, as needed, from generators. This type of trading faces increasing regulatory pressure.


Governance


G. Legislation and Changing Regulations and Reporting: The Energy and Natural Resources (ENR) sector has long been subject to oversight, regulation and control. Regulations are necessary in the ENR sector to ensure economic efficiency, consumer protection, environmental protection and security of supply.

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Jorn De Neve

Jorn De Neve

Partner

+32 (0)27084778

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