The transformation of global energy markets

Abstract

Two major shifts in global energy markets have occurred over the past ten years. First, emerging economies now drive growth in global energy consumption and use more than half of all energy produced globally. The growth emphasis has clearly shifted to emerging economies. Second, traditional energy markets have been challenged by the arrival of unconventional hydrocarbons and plentiful liquefied natural gas. Renewable energy sources continue to meet an increasing share of consumption, yet even a few decades from now they will account for less than 20% of overall production. At the same time, access to unconventional oil and gas deposits has driven down production costs, especially in the United States and Canada. This has led to a dramatic drop in natural gas prices in North America even as energy prices have remained high in Europe. Keywords: energy markets, shale gas, liquefied natural gas (LNG)