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  By 2030, worldwide energy demand will be more than 50% greater than it is today. This is the base case outlined by the Energy Information Assocation. Regardless of fuel type, from coal to natural gas to wind to nuclear, the world is going to need more of all the various fuels we use to provide energy. [edit] What is driving the increase in worldwide energy demand? (1) Industrialization, especially in emerging markets. Businesses, and factories in particular, require significant amounts of energy in the form of both electricity and petroleum-based fuels in order to operate. As economies industrialize, energy demand increases. (2) Increasing wealth in emerging markets, especially China and India. When economies grow, their energy needs grow. Consumers want cars, air conditioners, refrigerators, and other energy hogs that those of us in the developed world take for granted. And one thing China and India are doing a lot of is growing. (3) Globalization. Transportation is one of the largest consumers of energy in the world, accounting for 58 percent of liquid fuel consumption in OECD countries in 2004. As we move more often, further, and with greater speed, the energy we use in transportation will inevitably increase. Air travel in particular is a heavy user of fuel. (4) Concerns over energy security. While energy demand is typically driven by short-term considerations (e.g., GDP growth, weather, transport needs), long-term concerns over energy security around the world have led to what some might consider an irrational premium paid for energy assets. This is most apparent in the very favorable deals struck by China with host governments in countries around the world to explore for oil & gas, one of the contributing factors to the increasing premium paid per barrel of proven oil reserves in the oil exploration and production industry. [edit] How will we mitigate rising energy demands The worldwide increase in demand energy for energy has put ever-increasing pressure on identifying and implementing ways to save energy. In fact, the world has consistently improved its energy efficiency (in terms of energy require to produce on dollar of GDP). However, going forward the world will need even more improved energy efficiency measures. More efficient buildings -- Reflective roofing, better use of daylight, and other green-friendly and energy-friendly improvements can drastically reduce energy demands from electricity-guzzling commercial buildings. Light bulbs -- Seriously, this is one of the least cost, highest impact ways to save on energy bills. Newsweek estimates that each $2 spent on new compact flourescent lamps (CFLs) bulb can save more than $30 in power and replacement costs. It helps that they last 10 times longer than standard bulbs. Demand-side management (DSM) -- For years, utilities have been trying to convince their consumers to reduce their power consumption during peak usage periods (think: 105-degree summer day in Phoenix). These efforts fall under the general category of demand-side management. As electricity becomes more expensive, consumers and utilities will have a mutual interest in finding new ways to manage demand for electricity so as to reduce the cost to the end-user. For example, programs to turn off idle appliances, rather than let them "sleep" in low-power mode, or to automatically turn off the heat or air conditioner during the wee hours of the night in corporate headquarters. Fuel efficiency -- Sure, everyone you know drives a Prius, but there are myriad other ways to improve fuel efficiency. One of the most obvious involves ensuring proper inflation of one's tires. In fact, automobile manufacturers are exploring electronic remote monitoring of tire pressure as one methods to ensure fuel efficiency. Another method, less likely to win over road warrior Americans, is to limit frequent and intense stopping and starting, the most fuel-intensive driving activities. [edit] Companies who stand to benefitESCO Technologies (ESE) and Itron (ITRI) are two leading manufacturers of "smart" meter readers, and should benefit from the boost in DSM brought on by the rising worldwide demand for energy. Johnson Controls (JCI), which helps design and maintain more energy-efficient buildings, is well-poised to benefit from the need of corporate customers to reduce energy consumption, as well as the need to reduce greenhouse gas emissions as a result of a possible carbon trading regime in the U.S. Koninklijke Philips Electronics, N.V. (PHG) has already announced that it is phasing out incandescent bulbs and moving |
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