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Energy Your World vs. America's View vs. Washington's Reality
Energy Your World vs. America's View vs. Washington's Reality
Karen A. Harbert
Executive Vice President
Institute for 21st Century Energy
US Chamber of Commerce
The New Energy Reality
Energy Security is central to our national and economic
security
INDIA
Hopes to maintain an annual GDP growth
rate of 8% over the next 25 years.
That level of growth would require India to at
least triple its primary energy supply and
quintuple its electrical capacity
India’s demand for oil will grow at an average
rate of 2.9% over the next 25 years, yet they
have only 0.4% of the world’s proven oil
reserves and domestic production is
expected to remain constant or decline
Oil consumption has increased sixfold over
the past 25 years
Market Situation
Market fundamentals are driving prices up
Economic growth boosting demand
OPEC production decisions
Low OPEC spare capacity
Moderating non-OPEC production –growth
Falling inventories
Refining bottlenecks
Geopolitical risks
Increased speculation
Decline of Dollar leads to investing in
commodities
HIGH PRICES AND VOLATILITY
Market Players
Dependence on imports of liquid fuels and
other petroleum by 2030
million barrels per day
25
History Projections
20
Consumption
Net Imports 54%
15 60%
10 Domestic Supply
0
1960 1970 1980 1990 2000 2010 2020 2030
Annual Energy Outlook 2008
What’s changing?
70% - June
75% - July
63% - September