NEW FUELS SNAPSHOT – JUL 2010
The old energy order is breaking down and a new global energy economy is beginning to challenge the old guard represented by OPEC and the international major oil companies. Growth in the market for liquid fuels no longer flows from new crude oil whose new supply is being undermined by old field decline and by the complications and high costs of difficult deep water plays such as the Brazilian sub-salt and from dangerous reservoirs in the Gulf of Mexico. Instead the extra barrels flow from Canadian tar sands, biofuels, natural gas plant liquids and now from marginal plays such as Bakken oil shales.