December 2005
NOTES
Patsy Wurster
Welcome to the 2006 Global Energy Outlook issue of Platts Insight. Last year, our inaugural Global Energy Outlook issue was a fantastic success, reaching more than 30,000 industry executives around the globe. This year's issue again gives you critical insight from the industry's most trusted information source. Read More
Dr. Robert Peltier, PE
Perhaps the biggest news in the market and country reports prepared by Platts senior editors for this issue of Insight is the emergence of China onto the world energy stage and the resultant ripple effects on markets. Read More
AUTHORS
Mark Davidson is Editorial Director for Platts' North American natural gas news coverage. Based in Washington, D.C., Mark also has served as Chief Editor of Gas Daily and Managing Editor of Inside FERC's Gas Market Report. A graduate of the E.W. Scripps School of Journalism at Ohio University, Mark wasa general assignment and local governmentreporter for daily newspapers in Ohio and Virginia for nearly a decade before joining Platts in November 1995. Read More
OIL
John Kingston
Man and nature have conspired to produce an oil production perfect storm that has pushed crude prices to new highs and that isn't likely to reverse course any time soon. Read More
*Crude: $50/barrel Read More
COAL
Margaret Ryan
Supply/demand fundamentals seem poised to keep prices of competing fossil fuels high, which could cushion coal prices, but increased mining and transportation costs may squeeze producer profits. Are markets ready for more volatility? Read More
*2004: $20/mt for a typical European cargo; $15 to $20/mt into Japan and Korea Read More
GAS
Mark Davidson
With no easing of the supply/demand imbalance in sight, 2006 is almost certain to be a year of higher prices and increased market volatility. Read More
*Fourth-quarter estimate: added nearly 35% ($3/mmBtu) Read More
*Wyoming to Ohio: 2 bcf/day Read More
ELECTRIC
Kathy Carolin Larsen
While American utilities grapple with the impacts of doubled natural gas prices and the Energy Policy Act of 2005, their European counterparts are focusing on consolidation and carbon control. Read More
*Exelon: buying Public Service Enterprise Group for $25.7 billion Read More
RENEWABLES
David R. Jones
The renewable energy industry has enjoyed a banner year, and new laws in the U.S. and China offer prospects for continued expansion. But will equipment supply shortages cause the renewable energy growth machine to sputter? Read More
*Production tax credit renewal is powering wind farm construction Read More
*Australia: EnvironMission's 50-MW solar tower Read More
PETROCHEMICALS
David Hanna
With chemical prices swinging even more widely than those for oil, the industry is eyeing financial derivatives as a way to mitigate risk. Read More
*Middle East: 7 million metric tons Read More
*2000: 5% Read More
TOP 250 GLOBAL ENERGY COMPANIES*
Theo Mullen and Melissa Leonard
Revenues and profits for many firms surged last year over previous years. The turnaround from our last global survey is dramatic. Read More
• Diversified utilities Read More
CHINA
David Ernsberger
China's emergence as the only country with a credible chance of challenging America's status as the globe's only superpower has dramatically reshaped the way commodities like oil, coal, and nonferrous metals are traded and valued. Read More
*Car sales: rose 17% in the first nine months of 2005 Read More
RUSSIA
Richard Swann
Russia remained in the worldwide energy spotlight this year despite a notable slowdown in the growth of its oil production from the heady rates of 2004. A year dominated by corporate deals and failures has resulted in a big shakeup, with the government taking a central role in the drive to find new markets for the country's abundant energy reserves. Read More
*Power of the state: Rosneft and Gazprom join list of leading oil producers Read More
GLOBAL LEADERS PROFILE - SPECIAL ADVERTISING SECTION
Colette Lewiner Executive Vice President and Global Leader Global Energy, Utilities & Chemicals Sector Capgemini
On behalf of the 60,000 men and women of Capgemini around the world, I would like to extend congratulations to all winners of the 2005 Platts Global Energy Awards. Read More
Spanning 26 countries on five continents, AES generates and provides power to people in more countries around the world than any other company. For almost 25 years, AES has provided the critical energy needed to power communities and economies the world over. And our global impact is as wide-ranging as our scale: our generation and utilities businesses have the capacity to serve 100 million people worldwide. Read More
Constellation Energy is North America's number one supplier of energy to retail commercial and industrial customers and its largest wholesale power seller. We're an innovative and experienced nuclear fleet operator and own and operate power plants throughout the United States. Constellation Energy delivers electricity and natural gas in Central Maryland through our regulated utility, the Baltimore Gas and Electric Company (BGE). Number 167 on the Fortune 500 list, we have nearly two centuries of energy experience and one of the strongest, most stable balance sheets in the industry. Combined revenues in 2004 totaled $12.5 billion. Read More
Elster Electricity is an industry leader in the development of smart meters and Advanced Metering Infrastructure (AMI) systems. In 2003, Elster Electricity released the EnergyAxis® System—a comprehensive AMI solution for residential, commercial, and industrial electricity metering applications. Additionally, water meters covered by the electricity meter communication infrastructure can be read and billed, or monitored for leakage. The EnergyAxis System uses a powerful two-way RF communication system to retrieve metering information directly from meters. The system enables utilities to not only deploy automated meter reading (AMR) systems, but also gives utilities many additional tools to improve business operations. Read More
After following a back-to-basics strategy since 1998, Entergy Corporation moved beyond the basics in 2004. Entergy returned excess cash to shareholders—via a 20 percent dividend increase and a $1.5 billion stock repurchase—while still investing in long-term growth. For the fifth consecutive year, its stock price achieved an all-time high. The company's 2004 performance won it the utility industry's highest accolade, the Edison Award (its second victory in three years). Entergy also received the Edison Electric Institute's award—for a second consecutive time—for having the industry's best financial return over the prior five years. Entergy investors realized a 149 percent 1999–2004 return—3.5 times greater than the S&P Electric Utilities Index. Read More
Foundation Coal Holdings, Inc., a publicly traded company since 2004, ranks among the five leading coal producers in the United States. Foundation Coal through its subsidiaries employs more than 2,900 workers with 13 high-tech mining operations located within the four major coal producing regions of the country: Powder River Basin, Northern Appalachia, Central Appalachia and the Illinois Basin. Read More
GAIL (India) Ltd. is India's principal natural gas transmission and marketing company with activities expanding to gas processing for fractionating liquefied petroleum gas (LPG), propane, SBP solvent and pentane; transmission of LPG; petrochemicals like HDPE and LLDPE; and leasing bandwidth in telecommunications. The company has extended its presence in power, liquefied natural gas (LNG) regasification, city gas distribution, and exploration and production. The company recorded a turnover of US$2.75 billion and profit after tax of US$434.2 million in the year 2004–05. Read More
Russia holds about one-third of world gas reserves. Almost two-thirds of Russian reserves are controlled by Gazprom, the world's largest natural gas company. Exports from Russia are handled by Gazpromexport, a subsidiary of Gazprom. Read More
International Transmission Company has redefined the energy industry through the realization of the vision of an independent transmission company business model. As the nation's first fully independent transmission company, International Transmission has raised the bar by dramatically increasing capital and maintenance investment in order to address the historical lack of national investment that lead to such issues and events as the Blackout of 2003. This business model was validated following the successful initial public offering of International Transmission's parent company, ITC Holdings Corp. The beginning of International Transmission's story was fueled by vision, faced with seemingly insurmountable challenges and ultimately resulted in a successful start-up business forging the future of the industry, all in just over two years. Read More
A company is more than the sum of its parts, and for KeySpan Corporation's 10,000 employees, that indefinable something can be called pride. According to Robert B. Catell, KeySpan's chairman and chief executive officer, "Pride in what we do, what we are, and what we can be, is what defines KeySpan." Read More
Phillip G. Harris, a 30-year energy industry veteran, is president and chief executive officer of PJM Interconnection and chairman of the PJM Board. PJM, the nation's first fully functioning regional transmission organization, administers the world's largest energy market and operates the world's largest electricity grid. Read More
ProLiance Energy, an Indianapolis-based gas marketing and trading company, is celebrating the 10th anniversary of its formation. Formed as a start-up joint venture between affiliates of Vectren Corporation (NYSE "VVC") and Citizens Gas & Coke Utility, an Indiana public charitable trust, the ProLiance Energy joint venture represents an innovative gas supply alliance that has successfully met the challenges of deregulated interstate natural gas markets and provided substantial benefits to customers. Read More
Shell Global Solutions is one of the world's leading providers of cutting-edge consultancy and technology services to the upstream E&P, petrochemical and processing industries. With a truly global reach, proven implementation skills and a broad portfolio of tools and techniques, we strive to make a difference across the entire spectrum of hydrocarbon management. Read More
The Tennessee Valley Authority is a federal corporation established by Congress to produce electricity, manage the Tennessee River and other natural resources, and promote the economic development of the Tennessee Valley. Read More
Xcel Energy's Richard Kelly rolled up his sleeves on July 1, 2005, as Xcel Energy's new President and CEO. It is work he and his predecessor, Wayne Brunetti, initiated two years ago—shifting away from a deregulated business model back to capitalize on the company's traditional utility roots. Kelly, who has a 36-plus-year tenure in the utility industry, recognizes Xcel Energy's success hinges on serving customers and investors through solid growth, social responsibility, employee commitment and excellent service. Read More
CUSTOMER SATISFACTION
Patsy Wurster
J.D. POWER AND ASSOCIATES RECENTLY presented its Founder's Award to Progress Energy, a leading diversified energy company headquartered in Raleigh, N.C. This award recognizes Progress Energy for its commitment to customer service. J.D. Power, III presented this award during the 7th annual Platts Global Energy Awards at the historic Roosevelt Hotel in New York City on December 1, 2005. Read More
GLOBAL ENERGY AWARDS
Neil Fleming
2005 was a boom year for the energy industry. But it was a helluva tough year in which to win a Global Energy Award. Read More
Printer-friendly format