Fossil fuel subsidies triple – driven largely by rising energy prices

The mind boggles…. Global Trends latest industry brief analyses the trends driving change in the energy sector, considers the facts and asks the tough questions about the future.

Every day, New York City consumes the same amount of electricity as all sub-Saharan African nations combined, excluding South Africa. Royal Dutch Shell’s 2011 revenues exceed the GDPs of Austria, Argentina and South Africa while ExxonMobil’s exceed the GDPs of Thailand and Denmark. {{Worldwide fossil fuel subsidies almost tripled in 2010 -- up US$409 billion in 2010 from US$110 billion in 2009}}, driven higher by rising energy prices. The International Energy Agency (IEA) predicts total world consumption of energy will increase by a staggering 53% from 2008 to 2035.

Tracey Keys, Director, Global Trends said, “Meeting future energy and electricity challenges requires a radical rethink of how we produce energy, from what feedstock, how the power grid is organized and managed, where investments are made – geographically and in terms a mix of traditional and renewable sources. It’s a complex landscape that requires long-term planning and a global overview.”

Designed to help industry leaders prepare for the future, Global Trends’ latest brief analyses the trends driving change in the energy sector and surveys the geopolitical landscape. Exploring how these trends are reshaping the energy market landscape – and outlining how these require industry, governments and end users adapt to and adopt new business models and technologies. Spotlights include:

• How a growing population and increasingly affordable energy-using devices for the world’s emerging middle class is driving demand.
• How distributed energy and other innovations impact the way we produce and gain access to energy – energy that is increasingly cleaner and more sustainable.
• How growing environmental concerns are driving the energy industry and changing consumer behavior.
• How the world’s governments could redefine the future of energy and power politics.

Released today, Global Trends energy industry brief surveys an increasingly complex and competitive landscape and identifies the players and their roles – all within the context of the trends impacting the industry globally.