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The Henry Hub Spot Price is Expected to Average About $7.30 Per Thousand Cubic Feet (Mcf) In 2007 and $8.01 Per Mcf in 2008 - Global Energy Industry Outlook 2008

Posted on: Monday, 7 April 2008, 15:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c87919) has announced the addition of Global Energy Industry Outlook 2008 to their offering.

For the better half of 2007, oil has traded in a $10 band either side of $70 per barrel. The primary reason for this was because supply of oil has struggled to keep up with the other face of the energy market, demand. Economic growth around the globe in developed and developing economies alike has also kept the world needing more energy. However, to meet this, supply of oil has just barely managed to keep up. And oil prices seem set to rise further.

Looking towards 2008 and trying to understand what the global energy markets are going to look like during the year, here's what this short future outlook on global energy market in 2008 contains:

It is highly likely that global oil markets will remain stretched out, as global oil demand has continued to increase at a much faster rate than oil supply outside of the Organization of the Petroleum Exporting Countries (OPEC), putting pressure on OPEC and inventories to bridge the gap. Additional fundamental factors contributing to price volatility include ongoing geopolitical risks, OECD inventory tightness, and worldwide refining bottlenecks. As a consequence, crude oil prices are expected to remain high and volatile.

Working natural gas in storage reached a record 3.51 trillion cubic feet (tcf) as of October 26, 2007. This gives the indication that abundant level of storage and limited fuel switching capability have mitigated the impact of the recent price increases in petroleum markets on natural gas prices. This trend is likely to continue in 2008 as well. The Henry Hub spot price is expected to average about $7.30 per thousand cubic feet (mcf) in 2007 and $8.01 per mcf in 2008.

The International Energy Agency (IEA) forecasts that energy demand between now and 2030 will increase by a half, an annual average increase of 1.6%. Two-thirds of the new demand will come from developing nations, with China accounting for 30%.

What is new is the focus on the environmental impact of consuming as much energy as we do in the way that we do. And that is what provides the hope that the world can modify its demand for energy, or at least its fossil-fuel energy demand, through efficiency and conservation.

No doubt that the coming year is likely to witness the world using more coal and more natural gas. The expansion of nuclear energy is going to continue to be constrained by the length of time it takes to build plants and get the regulatory approvals to operate them. Safety concerns further add a roadblock to the entire process. The use of biofuels and renewable alternatives such as wind and solar power will grow rapidly, but they have such a small base of use they will not replace significant quantities of fossil fuels any time soon--nor diminish the competition between countries to secure supplies.

Topics Include:

Executive Summary

Global Energy Consumption

Global Petroleum Markets

Global Natural Gas Markets

Global Electricity Markets

Global Coal Market

For more information visit http://www.researchandmarkets.com/reports/c87919

Source: Business Wire

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