Whilst most market commentators expect oil demand to continue to grow over the next twenty years, oil is expected to lose its dominance as the largest component of primary energy supply with cleaner sources such as gas, hydro and renewables accounting for c.40% of supply by 2035.
A growing emerging markets power sector is expected to drive a material increase in gas demand over the next decade driven by rising electricity consumption per capita (China currently consumes less than half per capita than the OECD average and India one tenth) and robust industrial growth. Indigenous producers are well placed geographically to supply this demand, often competing with LNG imports that incur comparatively higher transportation costs.
An upcoming conference hosted by Edison will look at a number of small/mid-cap listed E&Ps that supply emerging economies with gas, often under long term contract. Each speaker will provide an overview of their regional market, where they fit in the gas value-chain and the opportunity for equity investors to participate.
Virtually all growth in global energy demand comes from emerging economies – China and India combined make up half of the increase. A material increase in gas demand is expected from China and Middle East, growth driven by both the industrial and power sectors. Meeting this demand is an increasingly diverse supply mix including domestic sources, piped imports and LNG. In addition, upstream technological advancement has meant that growth in gas supply over the next two decades is predominantly driven by unconventional sources such as US shale, Australian CBM and Chinese indigenous production. New sources of supply and increasing ‘gas on gas’ competition has raised questions about pricing in a market which has historically been regional / hub-based. Presenters our conference will talk through the supply / demand dynamics and what this means for regional pricing / contract structures – this year’s speaker line-up covers a broad range of markets including South America, Africa, China and South East Asia.
We hope to see you on 13th June, in order to register your attendance please contact: email@example.com