Book contents
- Frontmatter
- Contents
- Figures and Tables
- Abbreviations and Acronyms
- Foreword
- INTRODUCTION
- KEYNOTE ADDRESSES
- GLOBAL ENERGY MARKETS AND THE WORLD ECONOMY
- 1 Oil Markets and the Strategic Outlook for the Middle East
- 2 Key Energy Challenges for the World Economy to 2050
- 3 Changing Oil Fundamentals: Impacts on Energy Security and the Global Oil Market
- EMERGING TRENDS IN NUCLEAR ENERGY
- PROSPECTS FOR RENEWABLE ENERGIES
- POLICIES FOR GCC PRODUCERS
- Contributors
- Notes
- Bibliography
- Index
3 - Changing Oil Fundamentals: Impacts on Energy Security and the Global Oil Market
from GLOBAL ENERGY MARKETS AND THE WORLD ECONOMY
Published online by Cambridge University Press: 05 November 2014
- Frontmatter
- Contents
- Figures and Tables
- Abbreviations and Acronyms
- Foreword
- INTRODUCTION
- KEYNOTE ADDRESSES
- GLOBAL ENERGY MARKETS AND THE WORLD ECONOMY
- 1 Oil Markets and the Strategic Outlook for the Middle East
- 2 Key Energy Challenges for the World Economy to 2050
- 3 Changing Oil Fundamentals: Impacts on Energy Security and the Global Oil Market
- EMERGING TRENDS IN NUCLEAR ENERGY
- PROSPECTS FOR RENEWABLE ENERGIES
- POLICIES FOR GCC PRODUCERS
- Contributors
- Notes
- Bibliography
- Index
Summary
The global oil market is at a crossroads. Current global trends in oil supply and demand are patently unsustainable environmentally, economically and socially. It is no exaggeration to state that the future of global economic growth and, indeed, the future of human prosperity, depend on how successfully we handle the two central challenges facing us today: oil supply security and the pace at which we develop alternatives to oil.
Oil is the world's most viable source of energy and will remain so probably throughout the twenty-first century, even under the most optimistic assumptions about the pace of development and deployment of alternative technologies. The surge in oil prices in recent years culminating in the price spike of 2008, coupled with much greater price volatility, have highlighted just how sensitive prices are to market imbalances. They have also alerted people to the ultimately finite nature of oil resources. In fact, the immediate risk to supply is not one of a lack of global resources, but rather a lack of investment where it is needed.
Cumulative investment of more than US $13 trillion is needed between now and 2030 in oil exploration and expansion of production capacity worldwide. The projected increase in global oil production hinges on adequate and timely investment. Some 64 million barrels per day (mbpd) of additional capacity – the equivalent of almost seven times current Saudi oil production – needs to be brought on stream between now and 2030.
- Type
- Chapter
- Information
- Global Energy MarketsChanges in the Strategic Landscape, pp. 97 - 116Publisher: Emirates Center for Strategic Studies and ResearchPrint publication year: 2012