Global energy industry shows encouraging signs, according to EIC Monitor.

EIC quarterly report tracking new projects in the global energy industry shows positive forward steps across the energy sectors with renewables continuing to lead the way.

London, 27 April 2010 : The global energy industry has seen encouraging signs of growth in the first quarter of 2010 according to EIC Monitor, a quarterly report from the EIC, the leading trade association for UK companies that supply capital goods and services to the energy industries worldwide. EIC monitor reports newly announced projects across the global energy supply chain. The Q1 (January – March 2010) report reveals that the number of new projects has increased across all sectors apart from a slight decrease in the power generation sector. There are reasonable improvements in total project value in the upstream and power sectors, significant increases in the downstream and renewables sectors, while the midstream sector has lost ground since the previous quarter.

EIC Monitor tracks over 7,800 active and future projects in the global energy industry and provides an industry 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, active and proposed projects recorded by the EIC each quarter.

Key highlights of Q1 2010 report (1 January – 31 March 2010):

• Overall this quarter, the total number and value of new projects has increased significantly on the previous quarter and on the same quarter, Q1 2009. In Q1 2010 there were 422 new projects across the global energy supply chain with an estimated total value of US$503Bn, compared to 353 in Q4 2009 totalling US$273bn and 326 new projects in Q1 2009 worth US$292Bn. • Renewable energy projects represent the largest segment of new projects by value in the industry this quarter, and are up by over 200% this quarter. This is largely due to the emergence of individual projects in UK Round 3 Offshore Wind valued at approximately US$150Bn in total. • In the power sector, the total value of new projects has increased by over 40% on the previous quarter’s results, although the number of projects has decreased very slightly, down by only 6%. • The upstream sector is continuing to recover with the total value of new projects increasing by 28% on the previous quarter. • The midstream sector has shown good growth in the number of new projects this quarter although the total value of the projects has decreased by around a third compared to the previous quarter. • In the downstream sector, the number and value of new projects have both increased with the number of projects up by 20% and the total project value almost doubling compared to the previous quarter’s results.

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 the EIC Monitor, Mike Major, CEO of the EIC said, “EIC Monitor shows some encouraging signs across the global energy industry this quarter. This represents a positive start to the year, improving on the previous quarter and provides further confidence for the energy supply chain. In particular, the renewables sector continues to go from strength to strength – driven this quarter by the UK announcement of 25GW of offshore wind projects worth in the region of US$150Bn.”

Tags: EIC Monitor