Jason Barton

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Archive for the ‘The Economy and Energy Innovation’ tag

A Strong Economy is Positive for Energy Innovation

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To pick on one particular point in this article, I definitely don’t agree with Mr. Mosquero, the chairman of Tecpetrol, quoted below, as seeming to say that the global economic crisis is positive for our energy future because it has tempered demand.

A sound economy allows companies to invest in developing the technologies that will increase our efficiency and our capabilities to, among other things, innovate alternatives to non-renewable resources. Specifically in terms of energy, those technologies that aren’t already competitive are more likely to be at least as cost effective as fossil fuels in the coming years if our economy continues to prosper.

Energy Boom Is Coming Regardless of Slowing Global Economy, Officials Say

By Margot Habiby and Frederic Tomesco – Sep 14, 2010 12:59 PM MT

The world must prepare for the next energy boom, officials meeting this week in Montreal said, as long-range forecasts that demand will surge eclipse concern that the pace of the global economic recovery is slowing.
“Any long-term energy outlook that I’m aware of has continued demand increases for energy demand globally,” said Richard Newell, head of the statistics unit of the Energy Department, which predicts demand will rise 50 percent by 2035.
“Even though the share of fossil fuels in the energy mix may decline over the longer term, the absolute quantities of energy from these sources will continue to rise simply because total energy demand is set to expand so significantly,” Khalid al-Falih, chief executive officer of Saudi Arabian Oil Co., the world’s largest oil producer, said in a speech yesterday in Montreal.
Projections by the EIA, IEA and IHS-CERA show that “under current policies and current market trends, the fossil-fuel share of global energy consumption is likely to stay in the 70 to 80 percent range,” the EIA’s Newell said. These forecasts factor in increased use of renewable fuels as well as improved energy efficiency by countries from the U.S. to China, he said.
“If we continue with a double-dip world economic crisis, that’s fine,” said Marcelo Martinez Mosquera, chairman of Argentina’s Tecpetrol SA and Tecgas Argentina SA. “We can postpone talking about energy issues for a while until we go back to the 2008 economic scenario of different countries pushing for scarce commodities, but I don’t think this will happen.”

Read the entire article here.