The Big Picture

The energy sector has changed significantly since the 1990s. The cost of most forms of energy has increased in real terms, security of supply has become an issue and environmental issues are becoming increasingly important.

	1990s	Now
Oil	Long-term price below US$20 a barrel.	Long-term price over US$60, spikes to US$100
	Plentiful supply.	Concerns about peak oil and security of supply.
Gas	Prices will fall.	US prices over $6, rising Australian prices.
	Security of supply taken for granted.	Supply disruptions.
	Substantial stranded resources.	Growing global trade in gas.
Electricity	Competitive reform to reduce prices.	Concerns about black-outs and infrastructure investment.
Climate Change	Controversial	Commitment to a need for action
Renewables	Minority interest	Area of interest for mainstream investors
Uranium	Little interest.	Strong interest

Companies, investors and governments are recognizing that the energy world is changing and they need to anticipate and adapt to those changes. EnergyQuest monitors and forecasts developments in traditional energy markets (oil, gas, coal) and undertakes strategic analysis of emerging energy alternatives.

Most energy issues have four dimensions:

1. Economic growth: energy is a critical driver of economic growth and living standards.
   
   
2. Energy security: governments, companies and customers want reliable and secure energy supplies.
   
   
3. Environment and sustainability: Commitment to the need to reduce pollution and greenhouse emissions from fossil fuels and to develop sustainable energy sources.
   
   
4. Equity: while the developed world has access to reliable power and motorized transport, 1.6 billion people in the world do not have access to electricity.

There are numerous trade-offs between these dimensions and no energy solution fits well with every dimension. We take an integrated approach to energy issues, taking account of the four dimensions.