The Global Community Opts for Development of Energy Strategies

5 may 2017

The future of the modern global energy sector is determined by technology. As technological progress forecasting becomes ever more challenging, countries around the world are outlining strategic priorities for the development of the fuel and energy sector. Today, the top priorities emphasized by experts include improving energy efficiency, developing renewable energy sources and implementing deliberate policy to prevent global climate change. The issue of technology priorities in the energy sector is the main topic of the new energy bulletin prepared by the Analytical Center experts.

In Russia, key vectors of technological development in the fuel and energy sector are outlined in the draft energy strategy through 2035. On the whole, the country primarily emphasizes improving the efficiency of the traditional energy technologies, which is the main difference between the Russia's strategic plan and those of other countries. Other priorities include: reducing the risks associated with exports to Europe by expanding the capacity for exporting energy in the East and transporting mineral resources from the north of the country.

The EU, Norway, Japan, China, Saudi Arabia are prioritizing the development of new types of energy production, emphasizing the creation of an effective electric power market that relies primarily on renewable energy sources.

In most countries these ideas are being promoted alongside discussions about the prospects of the energy sector and the competitiveness of new types of fuel and new technologies. Development of new projects requires taking into account international market trends, transport infrastructure development and the trends in energy prices, the bulletin notes.

Global Markets See Continued Stabilization of Coal Prices. March 2017 saw a decline in the European natural gas indices and an increase in the price of natural gas in the Asia Pacific region and in the US. Researchers from the Oxford Institute of Energy Research also noted increased competition in the global market of LNG, following the lifting of the moratorium on the production of natural gas on the Northern Deposit in Qatar. The Federal Statistics Service recorded a 6.3% increase in the price of electricity for industrial consumers in March 2017.

The analysts believe that the signing of the oil production agreement by the OPEC and other oil producing nations was a key event in the global oil market in 2016-2017. The experts conclude that in the first quarter of this year the oil market was very close to equilibrium between production and consumption, which was clearly a positive result of the agreement to balance the market. The agreement to limit production may be extended for another 6 months after the countries that signed it meet again on May 25, 2017. Neither the MIE nor OPEC is making any predictions about whether the agreement will be extended or not. The experts believe that if the agreement was to be extended, it could result in a shortage of oil in 2017; however, this policy would not have a major effect on the global price of oil. At the moment it is the possible abandonment of the agreement that is viewed as a risk that may undermine the fragile balance in the oil market.

For more see the bulletin 'Technology Priorities in the Energy Sector'.

Other energy bulletins are available from the Publications Section.

Photo: from open sources