• 2 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 4 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 6 hours Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 8 hours German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 9 hours Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 11 hours Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 1 day Oil Prices Rise After API Reports Major Crude Draw
  • 1 day Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 1 day Gazprom Speaks Out Against OPEC Production Cut Extension
  • 1 day Statoil Looks To Lighter Oil To Boost Profitability
  • 1 day Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 1 day Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 1 day Whitefish Energy Suspends Work In Puerto Rico
  • 1 day U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 2 days Thanksgiving Gas Prices At 3-Year High
  • 2 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 2 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 2 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 2 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 2 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 2 days ConocoPhillips Sets Price Ceiling For New Projects
  • 5 days Shell Oil Trading Head Steps Down After 29 Years
  • 5 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 5 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 5 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 5 days Venezuela Officially In Default
  • 5 days Iran Prepares To Export LNG To Boost Trade Relations
  • 5 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 6 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 6 days Rosneft Announces Completion Of World’s Longest Well
  • 6 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 6 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 6 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 6 days Santos Admits It Rejected $7.2B Takeover Bid
  • 7 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 7 days Africa’s Richest Woman Fired From Sonangol
  • 7 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 7 days Russian Hackers Target British Energy Industry
  • 7 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
Alt Text

Can The Gas Glut Kill The Permian Boom?

The natural gas glut is…

Alt Text

EVs Won’t Stifle Oil Demand Anytime Soon

There will be 280 million…

Alt Text

The U.S. Export Boom Goes Beyond Crude

While U.S. crude oil exports…

The Main Points to Take from the Latest IMF, IEA, and EIA Reports

The Main Points to Take from the Latest IMF, IEA, and EIA Reports

There has been an acronymtastic set of reports this week from the IEA, IMF, and EIA. So from these nine letters come six charts out of three reports. Alphabetti spaghetti indeed.

First up is the IMF’s World Economic Outlook, which highlights a couple of key trends through some simple graphics. This first one is economic growth illustrated through painting by numbers – the darker the blue, the stronger the growth. The seeping from beige to red…the worse it gets.

Yes, the most obvious observation is that the OECD (the developed nations) appear to be lagging the most in terms of economic growth.

But what is most fascinating from an energy perspective is that all three of the outliers across the globe – the pink in South America (Venezuela), the beige in Africa (Sudan), and the red in the Middle East (Iran) – are all petro-states, and have seen deteriorating economic conditions due to falling oil flows. Iran’s problems are due to sanctions, Sudan due to its border war with South Sudan, and Venezuela due to underinvestment in its oil industry.

World 2013 GDP Growth Forecasts

The second chart from the IMF report underscores how commodity prices not only trend with industrial and manufacturing activity, but also with equities. Something to consider as we see equities and commodities diverging of late…one of them has to be wrong.

Commodity Prices

Related article: UK Renews Drive for Offshore Oil and Gas

The IEA released the Clean Energy Progress Report for 2013 this week, which is a whopping 154 pages long. Here are two charts plucked from the depths of it, with the first illustrating how coal-fired power generation will continue to be a dominant force this decade – a sentiment echoed in other IEA reports.

In fact, the report highlights an ‘alarmingly slow‘ rate of progress from technologies which are supposed to help diversify the world away from reliance on fossil fuels. In the foreword, the IEA’s executive director Maria van der Hoeven says ‘the carbon intensity of the global supply has barely changed in 20 years, despite successful efforts to deploy renewable energy‘.

Coal and Non-Fossil Power Generation

This reliance on fossil fuels, and specifically coal, is reflected most clearly through the shift in global industrial energy consumption over the past decade. The shift in consumption has basically been a transfer from the OECD to China. And given that China is the largest coal consumer in the world – accounting for almost 50% of global consumption - it is no surprise to see the aforementioned on-going favouritism towards coal.

Global Industrial Energy Consumption by Region

Next up we visit the EIA and its Annual Energy Outlook, which is being released on a staggered basis. Part of this week’s release focuses on international market trends.

Global production of biofuels, coal-to-liquid, and gas-to-liquid fuels totaled 2.1 million barrels a day in 2011, making up 2% of the total of all liquid fuels. The EIA projects this number will nearly triple to 5.7 million barrels a day in 2040.

World Liquids Production from Coal, Biomass, Natural Gas

Related article: Lufkin Acquisition Boosts GE’s Oil & Gas Market Share

But these numbers are tiny compared to total global consumption of petroleum and other liquids. Current consumption is 46 million barrels a day for the OECD, and 43 million for non-OECD.

However, by 2040 this is expected to have shifted to 65 million barrels a day for the non-OECD, compared to a minorly minor rise in the OECD to 47 million barrels. Demand in the OECD will continue to be driven at the margin by price, while non-OECD demand will be driven by economic growth.

World Petroleum and Other Liquids

Thanks for playing alphabetti spaghetti. Until next time…rock on!

By. Matt Smith




Back to homepage


Leave a comment
  • David B. Benson on April 18 2013 said:
    Clear exposition.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News