The number of new projects announced during the last quarter (Q2: April – June 2012) across the global energy industry is down 15 per cent compared with Q1 2012, while the total potential investment value of US$295 billion is down 7.5 per cent on last quarter, and down 6.2 per cent on Q2 2011, according to the EIC Monitor quarterly report from the EIC.
EIC Monitor tracks over 9,400 active and proposed projects in the global energy industry and provides a barometer, broken down into oil and gas (downstream, midstream, upstream), nuclear and conventional power and the renewables sectors. Data is analysed by the number and value of new (both active and proposed) projects recorded by the EIC each quarter. [Page Break]
Key highlights of Q2 2012 report (1 April – 30 June 2012):
* Overall this quarter, there were 401 new projects announced across the global energy supply chain with an estimated total value of US$295 billion, compared to 471 in Q1 2012 totalling US$318 billion and 555 new projects in Q2 2011 worth US$314 billion.
* The upstream sector has seen an increase of 55 per cent in the potential investment value of new projects, up from US$33 billion in Q1 2012 to US$50 billion in Q2 2012 with a fall of 34 per cent in new project numbers.
* The midstream sector has seen a 56 per cent decrease in the potential investment value of new projects with a 17 per cent decrease in the number of new project announcements since Q1 2012, down from US$89 billion to US$39 billion this quarter. This decrease is partly due to the significant number of LNG projects proposed for development in the USA in the previous quarter.
* In the downstream sector, the number of new quarterly projects has dropped by 7 per cent since Q1 2012 with a 47 per cent increase in the total potential investment value from US$43 billion in Q1 2012 to US$63 billion in Q2 2011.
* In the renewables sector the number of new projects is down 22 per cent in Q2 2012, with the potential investment value also falling 25% from US$76 billion in Q1 2012 to US$57 billion in Q2 2012.
* In the power sector, the number of new projects (110) has increased by 8 per cent this quarter with the potential total investment value of new projects rising 10 per cent to US$85 billion in Q2 2012.
In nearly all cases newly proposed projects must first undergo various planning and consent approvals which may take several years. Also, early stage proposals do not necessarily have financing agreed and in place. Thus there will always be a proportion of projects that do not gain consent and/or finance.
Commenting on EIC Monitor, Dr Phil Goddard, Head of EIC Consult said: “This quarter we have seen a mixed-bag of results, with the upstream, downstream and power sectors all showing signs of growth in potential investment value while the potential value of new projects reported in the renewables sector is down by 25 per cent on last quarter and 33 per cent on the same quarter the previous year. However, overall, the picture shows that the industry as a whole is holding steady. ”[Page Break]
Analysis by sector
Upstream
There have been 46 new projects in the upstream sector totalling US$50.5 billion in Q2 2012. In comparison, there were:
* 70 new projects totalling US$32.5 billion in Q1 2012.
* 64 new projects totalling US$40.8 billion in Q2 2011.
The Ukraine and Russia together account for two-thirds of the total potential investment value in this sector between them. The largest project announced is the proposed Skif Shale Gas Project in the Ukraine which could see investment of up to US$12 billion.
Midstream
There have been 66 new projects in the midstream sector totalling US$39.1 billion in Q2 2012. In comparison, there were:
* 80 new projects totalling US$89.3 billion in Q1 2012.
* 61 new projects totalling US$45.4 billion in Q2 2011.
* Key hotspots of activity this quarter can be found in the USA and Canada, representing 63 per cent of the total potential investment value between them. The most significant projects are the proposed US$5.7 billion TransCanada East Coast Pipeline in Canada, the proposed US$5 billion Mississippi LNG Liquefaction Plant in the USA and the proposed US$4 billion Coastal GasLink Pipeline in Canada. [Page Break]
Downstream
There have been 54 new projects in the downstream sector totalling US$62.5 billion in Q2 2012. In comparison, there were:
* 58 new projects totalling US$42.5 billion in Q1 2012.
* 70 new projects totalling US$53.4 billion in Q2 2011.
* Venezuela and Russia represent 40 per cent of the total potential investment value of projects announced this quarter, with nine projects worth US$25 billion. The largest projects are the proposed US$9.7 billion Petrobicentenario Refinery in Venezuela and the US$5 billion Moscow Oil Refinery in Russia.
Renewables
There have been 125 new projects in the renewables sector totalling US$57.2 billion in Q2 2012. In comparison there were:
* 161 new projects totalling US$76.1 billion in Q1 2012.
* 216 new projects totalling US$85.7 billion in Q2 2011.
Whilst there is a wide spread of projects around the globe, with 42 countries announcing renewables projects, France and Pakistan stand out as the clear leaders this quarter. France announced US$10 billion of offshore wind farm projects, and Pakistan's figures were dominated by the US$5 billion Dasu Hydroelectric Power Plant.
Power
There have been 110 new projects in the power sector totalling US$85.4 billion in Q2 2012. In comparison there were:
* 102 new projects totalling US$78.0 billion in Q1 2012.
*144 new projects totalling US$89.0 billion in Q2 2011.
* The most significant volume of announcements came from the USA and India, this quarter, with nine projects in the USA with a combined potential investment value of US$23 billion and 10 projects in India with a value of US$11 billion. The largest project is the US$18 billions Turkey Point Nuclear Plant Expansion (Units 6 & 7) in the USA.
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