World energy market

Subject 2
World Energy Market. Market Situation
Main Points:
Definition of World Energy Market.
Volume, Structure, Growth and Development Trends.
Current State of Energy Markets.
MARKET

Subject 2
World Energy Market. Market Situation
Main Points:
Definition of World Energy Market.
MARKET

is totality of world markets of different energy resources
World Energy Market
World Oil Market
World (International) Gas Market
World Coal market
International Electricity Markets
World Market of Urianium Fuel
World Energy Market

Possibilities and Limits of Energy Resources Substitution
One type of energy resources may be substituted with another, but this has its limits
In the second half of the XX century oil made significant advances at the expense of coal, then natural gas presented a serious challenge at the end of the past and at the beginning of the XXI century
The latter half of the XX century saw increased interest in nuclear energy only to witness its subsequent gradual decrease. The end of the current decade is characterized by a renewal of interest in nuclear energy
Renewable energy has been gaining more supporters, however, all forecasts agree that its share in world energy production in the next 20 to 25 years will be modest at best

Subject 2
World Energy Market. Market Situation
Main Points:
Volume, Structure, Growth and Development Trends.
MARKET

World Oil Market
is unique
World daily oil production in 2011 reached 3995,6 mn t
About half of extracted oil was exported

World Oil Production (mn tons)
Source: BP

Oil Production and Consumption in 2011 (mn tons)

Oil Production and consumption in 2011 (mn tons)
Source: BP

Largest oil importers and exporters in 2011, 000s b/d
Source: www.eia.gov

International Gas Markets
There is no global gas market
There are regional gas markets
Three big regional gas markets
European
Eastern Asian
North American

World Natural gas production
(mn t oil equivalent)
Source: BP

Gas production and consumpt in 2011 ( mn t oil equivalent)
Source:
www.eia.gov

World Coal Production (mn t)
Source:BP

World Coal Market
Global coal market consists of two segments
North Atlantic
Asian Pacific
Main Exporters
US, APEC countries an Latin American countries, Poland, Russia
Australia. South Africa, Canada

Intrnational Electricity Markets
There is no world electricity market
Only 4 to 5 per cent of produced electricity enters international markets
States and countries prefer to import electric energy rather than export it
Big net exports of electricity (over 20 bn KWh per year) are effected by a handful of countries (Canada, Paraguay, France)

Subject 2
World Energy Market. Market Situation
Main Points:
3. Current State of Energy Markets.
MARKET

State of the Market
Is the concrete situation in a particular market at a given period of time
indicaoors
1. Production
2. Supply and Demand
3. Trade indicators
4. Prices
It is subject to constant change due to various cyclical and non-cyclical factors

Crude oil price since 1861

Light Crude Oil (CL, NYMEX)
Monthly Price Chart
]

Light Crude Oil (NYMEX)

How oil trade is organised
Oil and oil products are mainly trade on oil exchanges

Physical Market has developed into financial (instead of crude oil, financial contracts are traded)
physical market is a commodity market where purchasers actually buy the commodities, as opposed to the futures market, where they buy and sell the right to purchase commodities at a future date
How oil trade is organised
Market mechanism of oil trade has changed

Crude oil is one of the world's most widely-used commodities and one of the most actively traded commodities worldwide
A key geo-political benchmark, the price of oil is among the most quoted statistics in business headlines today
That's why hedgers, traders and risk managers around the world rely on the ICE Brent, ICE WTI, ICE ASCI and ICE Gasoil futures markets
https://www.theice.com/crude.jhtml

Home Assignment
Find data on the Web relating to the oil price developments in 2010-2013 and make a graph