Reaction Paper on World Energy Outlook
The World Energy Outlook is an annual publication of the International Energy Agency. It is widely recognized as the most authoritative energy source for global energy projections and analysis. The annual publication contains long-term energy market projections, extensive statistics, analysis and advice for both governments and the energy business. The World Energy Outlook has also developed alternative scenario that puts the global energy systems on a trajectory to stabilize greenhouse gas emissions. Their latest publication was the World Energy Outlook 2012 that was released last November 2012. Here is what I have learned from the executive summary. There is a new global energy landscape that is emerging. Taking all new developments and policies into hand, our world is still failing to put the global energy system onto a more sustainable path. Global energy demand grows by more than one-third over the period of 2035 with China, India and Middle East accounting for 60% of the increase. Energy demand barely rises in the OECD (Organization for Economic Co-operation and Development) countries, but there is a big movement away from oil, coal and nuclear towards natural gases and renewable energies. I have learned that despite the growth in low-carbon sources of energy, fossil fuels remain dominant in the global energy mix, supported by subsidies that amounted to $523 billion in 2011, up almost 30% on 2010 and six times more than subsidies to renewable. The cost of fossil-fuel subsides has been driven up by higher oil prices. Energy developments in the United States are profound and their effect will be felt by other nations as well. It is projected that around 2020, the United States will be the largest global oil producer and starts to see the impact of new fuel-efficiency measures in transport. This would enable a switch in direction of international oil trade towards Asia. In the publication, it is said that energy...
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