November 2006
Notes
Patsy Wurster
Welcome to the 2007 Global Energy Outlook issue of Platts Insight. Now in our third year, we are rapidly becoming one of the industry's must-read publications when preparing for the coming year. This issue reaches more than 30,000 professionals in the energy and financial industries worldwide. The 2007 Global Energy Outlook, again, gives you critical insight from the industry's most trusted information source, Platts. Read More
Margaret L. Ryan Editorial Director, Platts Global Nuclear & Coal
It's all in the fundamentals. That's the message from world energy markets throughout 2006, according to Platts' senior editors who've surveyed their markets for this issue of Insight. Government policies can spur markets, as is occurring with renewables; or retard them, as continued regulatory uncertainty is doing for electricity; or create them, as is happening with emissions. Read More
AUTHORS
Matthew Boyle, Australia-Pacific editor for Platts International Coal group, joined Platts in Tokyo in 2001 to cover the Japanese and South Korean metals markets. He has since reported on metals and steel markets in London and global coking coal markets from his current home, Sydney, Australia. Boyle holds an honors bachelor's degree in economic geography from the University of Sydney, and is studying for his Masters of Applied Finance at Macquarie University. Read More
OIL
John Kingston, Global Director, Platts Oil
Regulations and hurricanes were expected to throw the market into turmoil. But despite some rising prices, the fallout didn't live up to the hype. The laws of supply and demand proved an effective regulator, and the oil industry showed incredible resiliency. Read More
COAL
Matthew Boyle, Australia-Pacific Editor, Platts Global Coal
Despite the hopes of coal consumers, coal prices didn't plummet in 2006 as demand stayed firm. China and India's growing economies, coupled with solid suppy-demand fundamentals in North America and Europe—and highly volatile prices for alternatives—will likely keep physical coal prices from wide swings in the coming year. Read More
NATURAL GAS
Mark Davidson, Editorial Director, Platts North American Natural Gas
Mild weather in 2006 allowed refill of gas storage and pushed North American natural gas prices down from the historic highs hit after 2005's hurricanes. But analysts say increased supply is being quickly mopped up, and near-term price trends will be upward, not down. Increased LNG capability means domestic U.S. demand is competing directly with demand globally, and consumers should be prepared for continued high costs, even this winter. Read More
ELECTRIC
Kathy Carolin Larsen, Editorial Director, Platts Noth American Electric Markets
With concerns over global warming rising, federal carbon emission mandates are expected in the next five to ten years—a step Europe is encouraging. Already various states are implementing their own regulations, creating a mismatch of rules that hinder comprehensive planning for power suppliers. Read More
PETROCHEMICALS
David Hanna, Global Director, Platts Petrochemicals
THE GLOBAL PETROCHEMICAL INDUSTRY IS confronting many of the same challenges that have haunted it since the late 1990s. But what's different now is that the industry is in a better position to tackle some of these chronic problems, both financially and in terms of its mind-set. Read More
RENEWABLES
David R. Jones, Editor, Platts Renewable Energy Markets
Renewables have entered the mainstream, with retailers stocking home rooftop solar panels and mini-wind turbines. Volatile conventional energy prices and rising awareness of climate change issues have created new receptivity to renewable technologies in both developing and developed economies, including boom markets like China and India. In 2007, there's no sign demand will slacken, but government environment policies and subsidies continue to be key factors determining the pace of growth. Read More
EMISSIONS
Alessandro Vitelli, Managing Editor, Platts Emissions
With the Kyoto Protocol's first compliance period beginning in 2008, much of 2007 will be focused on implementing the institutions needed to ensure the Protocol's effectiveness. The big unknown is whether governments and international bodies can make tough decisions in time to let the emissions market function effectively to reduce greenhouse gases. Read More
NUCLEAR
Jenny Weil, Managing Editor, Platts Nuclear Margaret Ryan, Director, Platts Global Nuclear & Coal
Confronting rising baseload demand, energy security worries, and potential carbon limitations, the U.S. power industry is joining Asia and Europe in finding nuclear power a viable option. But the industry must regain Wall Street and public confidence in its ability to manage huge new nuclear projects, without the overruns of 25 years ago, and in 2007-2008, it's put up or shut up for nuclear. Will the big players ante up big money for parts and federal licenses? Read More
MARKET FORECASTING
Larry Chorn, PhD, Chief Economist, Platts Analytics
The U.S. transportation fuel system is typically an effective carrier of natural gas and refined products, but it is codependent on other energy infrastructures. The 2005 hurricane season threw a wrench in the network, whose impact radiated through linkages into other infrastructure and illuminated the stresses besetting the U.S.'s aging systems. Read More
MARKETS
Linda Rafield, Senior Analyst, Platts
The effectiveness of markets is questioned with every spectacular rise and fall, but those fluctuations are markets at work. Markets work by a few simple rules. Markets have risk, but they are also effective tools to manage risk intelligently. Read More
RESOURCE STRATEGIES
Ross McCracken, Editor, Platts Energy Economist
The balance of power between producing countries and International Oil Companies is shifting with both resource nationalism and aggressive competition from National Oil Companies. Governments of energy-rich nations want ever-more control over commercial expolitation of their resources in far-flung parts of the globe. Heading into 2007, the commercial descision-making of IOCs will increasingly be pitted against the power of states. Read More
Top 250 Global Energy Companies
IOGs captured nine out of the top ten spots while IPPs struggled in 2005 as the sector on a whole lost money. The E&P segment showed financial stability while GUs saw their financials climb. The Exxon Mobil Corp. continued its reign of the number one spot. Read More
GLOBAL LEADERS PROFILE
On behalf of Capgemini and my thousands of colleagues across the world, I heartily congratulate the finalists of the 2006 Platts Global Energy Awards. Read More
GLOBAL LEADERS PROFILE
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning nearly 36,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP is headquartered in Columbus, Ohio. Read More
A world-class organization built around a globally recognized and inspired team dedicated to providing cost-effective and reliable service, well-balanced market mechanisms and high-quality information for the benefit of our customers. Read More
CNX Gas Corporation (NYSE:CXG) is an independent natural gas exploration, development, production and gathering company operating in the Appalachian Basin of the United States. The Pittsburgh-based company believes that it is the second largest gas producer in the Appalachian Basin, with 2006 production expected to be 55.7 billion cubic feet (Bcf), a 15% increase over 2005. CNX Gas has a tremendous asset base. Proved reserves as of December 31, 2005 were 1,130.4 Bcf, with a PV-10 value of $3.051 billion. A recently-completed study identified net unproved reserves of 2,039 Bcf. Importantly, over 90% of the net unproved reserves are economic at gas prices of around $5 per thousand cubic feet (Mcf), or less. The company has access to 2.44 million gross acres, of which 640,000 remain unevaluated. Read More
Elster Group is the world's leading manufacturer and supplier of highly accurate, high quality, integrated metering and utilization solutions to the gas, electricity and water industries. In addition, through its subsidiary Ipsen International, it is the leading global manufacturer of high level thermo-chemical treatment equipment. Read More
First Hungarian Natural Gas and Energy Trading and Service Provider Ltd. was born of the recent liberalization of the European natural gas market. The firm was chartered in 2003 upon the opening of the national market to independent companies. EMFESZ started activities in September 2003, based on the capital stock of 552 million Hungarian Forint (currently about US$2.56 m). Read More
Eni is a major integrated energy company committed to growth in finding, producing, transporting, processing and marketing oil and gas. Read More
An exemplary utility company in normal times, Entergy Corporation in 2005 faced two unprecedented storms, Hurricanes Katrina and Rita, which struck within four weeks causing widespread devastation throughout its service territory. Entergy demonstrated foresight, innovation and effective leadership in preparing for and recovering from these extreme natural disasters. Ninety percent of the 1.8 million outages from the storms were restored to power within 10 days. Read More
Gaselys is a young company, with an outstanding track record, and great expectations. Read More
With more than a dozen pending patents, GreenFuel Technologies Corporation is a clear leader in the development of systems for recycling rich CO2 streams from power plant flue gases to produce biofuels such as biodiesel, ethanol or methane. The company, which was founded in 2001, is headquartered in Cambridge, Massachusetts. For more information, visit www.greenfuelonline.com.
Read More
IBERDROLA is one of the strongest electricity companies in Europe, with USD 41.4 billion of market capitalization, 28,065 MW of environmentally friendly installed capacity and more than 18 million electricity customers. The company has more than 100 years history and has a deep experience in all the value chain of the electricity business. Read More
Within the Department of Energy's constellation of multiprogram research and development laboratories, Idaho National Laboratory occupies a unique niche at the nexus of energy supply and security. DOE's designated nuclear energy research, development and demonstration leader, INL plays a key role in the global nuclear energy renaissance—the new worldwide reconsideration and expansion of nuclear energy based on its capacity to deliver power cleanly, safely, reliably and on a massive scale. Read More
Mississippi Power Company is an investor-owned electric utility with 456 preferred stockholders. All common stock is held by the Southern Company, which is owned by 195,261 registered stockholders, of which more than 5,300 live in Mississippi. Mississippi Power has 1,253 employees. Read More
Saudi Basic Industries Corporation (SABIC) is emerging as one of the world's fastest growing and most successful petrochemicals companies. It has become a significant force in the world market and has created a new center of gravity for the Middle East as one of the most important regions for chemical industry growth in the decade ahead. Besides its own significant organic growth and new plants, SABIC has completed the acquisition of DSM chemicals in Europe and is completing the acquisition of Huntsman Petrochemicals (UK) whilst currently negotiating new investments in other global locations. Read More
Shell Global Solutions provides business and operational consultancy, catalysts, technical services and research and development expertise to the energy and processing industries worldwide. EMbaffle‡ is among the many innovative solutions that Shell Global Solutions has developed. This new technology is designed to offer process industries improved operating performance and help them to meet the ever-growing demands to waste less energy, reduce costs and limit environmental emissions. Read More
Williams is a $22 billion integrated natural gas company with assets stretching from coast to coast throughout North America. The company has delivered more than 100% return to shareholders in the last eight quarters and is well-positioned to deliver value growth in the future as it makes significant contributions to natural gas supply and reliable deliverability in the United States. Read More
CUSTOMER SATISFACTION
Patsy Wurster, Publisher of Platts Insight
J.D. POWER AND ASSOCIATES RECENTLY presented its Founder's Award to MidAmerican Energy, a leading diversified energy company headquartered in Des Moines, Iowa. This award recognizes MidAmerican Energy for its commitment to customer service. J.D. Power, III presented this award during the 8th annual Platts Global Energy Awards in New York City on November 30, 2006. Read More
GLOBAL ENERGY AWARDS
Neil Fleming, Vice President, Platts Strategy
For the eighth year in a row, Platts awarded their Global Energy Awards to the best in the industry in a variety of categories. From CEO of the Year to Rising Star, Platts sifts through several hundred nominations to award these prestigious honors. Read More
Printer-friendly format