The last decade has seen major changes in energy from 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 a global concern.
| 1990s | 2010 | 2016 | |
| Oil | Long-term price below US$20 a barrel | Long-term price over US$100 | Price slumps to US$40 |
| Plentiful supply | Concerns about peak oil and security of supply | US shale revolution, record stockpile | |
| Gas | Prices will fall | US prices over $6/mmbtu, rising Australian prices | Low US prices, rising Australian prices |
| Conventional gas supply | Growth of unconventional | Unconventional mainstream in US and Australia | |
| Substantial stranded resources | Continuing growth in Asia-Pacific LNG | Asia-Pacific LNG over-supply? | |
| Electricity | Competitive reform to reduce prices | Concerns about black-outs and infrastructure investment | Growth of renewables, shrinking baseload capacity |
| Environment | Little impact on energy development | Commitment to a need for climate change action | Climate change action, increasing concerns about energy land-use |
| Renewables | Minority interest | Area of interest for mainstream investors | Increasingly mainstream |
| Nuclear | Little interest. | Strong interest | Uncertain outlook but growing interest again |
After years of high oil prices, prices slumped in November 2014 on the back of slowing Chinese demand and growing US supply.
Global gas demand has stalled due to cheaper coal and competition from renewables.
After growing strongly there are now signs of LNG over-supply.
In this turbulent environment companies, investors and governments need:
- Robust and timely market data,
- Rigorous analysis to identify risks and opportunities, and
- Sound strategic advice.
EnergyQuest provides all three.
EnergyQuest also takes an integrated approach. Most energy issues have four dimensions:
- Economic growth: energy is a critical driver of economic growth and living standards.
- Energy security: governments, companies and customers want reliable and secure energy supplies.
- Environment and sustainability: Commitment to the need to reduce pollution and greenhouse emissions from fossil fuels and to develop sustainable energy sources.
- 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.