Encouraging levels of new projects are emerging across the global energy industry, according to EIC Monitor, a quarterly report from the EIC, the leading trade association for UK companies that supply goods and services to the energy industries worldwide. EIC monitor reports newly announced projects across the global energy supply chain. The Q3 (July – September 2010) report reveals that the power and renewables sectors are holding their strong position as the dominant sectors of the industry, accounting for over two thirds of all new projects and investment potential in Q3 2010. The upstream and downstream sectors have both seen a decrease in new project numbers since the previous quarter, while the midstream sector has shown a rise in activity.

EIC Monitor tracks over 8,000 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 Q3 2010 report (1 July – 30 September 2010):

• Overall this quarter, the total number of new projects has remained virtually static since the previous quarter and is still slightly lower on the same quarter in 2009. Potential investment value has fallen by around 17% since the same quarter last year. In Q3 2010 there were 413 new projects across the global energy supply chain with an estimated total value of US$301 billion, compared to 414 in Q2 2010 totalling US$300 billion and 473 new projects in Q3 2009 worth US$364 billion.

• In the power sector, there has been an increase in the number of projects together with an increase in the total investment value, up by 13%.

• In the renewable sector the number of new projects has dropped slightly from the previous quarter although the value of these has dropped more sharply.

• The upstream sector continues to decline with a 28% drop in both the number of new projects although total project value remains similar to the previous quarter.

• The midstream sector has seen a further small growth in the number of projects although with a significant 64% increase in project value since Q2 2010.

• In the downstream sector, the number of new quarterly projects has decreased further although the total investment has only fallen slightly since Q2 2010.

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, “It is encouraging to see that the EIC Monitor is showing that the global energy industry is remaining steady despite the ongoing harsh economic climate. China, India and the USA have some of the largest projects this quarter, but we continue to see a wide variety of new projects globally, with the power and renewables sectors accounting for the lion’s share of investment potential.”

Tags: EIC Monitor