South African oil and gas industry can contribute from one billion dollar to $1.5 Billion to the country's GDP and can create around 50000 more jobs in the country.
According to present Chief Director of the Department Trade and Industry, Nigel Gwynne-Evans, the South African offshore oil and gas industry can contribute from one billion dollar to $1.5 Billion to the country's, as reported by
iAfrica
Nigel Gwynne-Evans also disclosed that the current industry's share in the South African GDP is half billion dollars (R3.6 Billion). Moreover, the present employee strength of the industry is 5700 with multiplying effect of eight it will create around 50000 more jobs. As per the forecast for 2014, industry will create from 12000 to 20000 jobs.
The main reason for high growth in the South African oil and gas industry is support from the department of trade and industry. It is supporting industry at national level through specific economic policies at regional level and through a priority task team.
Another reason for high growth in the South African oil and gas market is increasing fuel demand within country and outside. Besides, the export of oil and gas from South Africa is rising which in turn taking industry to its peak. The highest demand for oil and gas is coming from fast developing Asian countries. These industries are witnessing huge growth in industrial and automobile sectors, which are main consumers of oil and gas. Including this, South Africa provides fuel at lower cost as compared to other countries and the Asian countries import fuel from South Africa.
In addition to this, technological advancements have facilitated oil and gas companies to run offshore platforms and produce fuel from deep water around the coastal line of South Africa. A new shipyard is also opened in South Africa that will help in building a platform for the production of oil and gas in the country. It is also creating opportunity for the South African economy to contribute to the oil boom in the West African region.
According to a research analyst at RNCOS, "As the demand for oil and gas is increasing worldwide, the production of oil and gas by South Africa is increasing. Additionally, South Africa provides fuel at low price rates in comparison to other countries which in turn boosting growth in the industry. Indirectly, South Africa is also increasing the popularity of oil and gas at the international level."
posted by RNCOS @ 11:15 AM,
Sales recorded by the clean energy industry increased by 40% last year and will continue to rise as demand of carbon-free energy is rising, says a market research.
Clean Edge, a research company that analyzes green technology industry, released an annual report on green technologies which says that sales of companies dealing in biofuel, solar panels, fuel cells and wind farms grew by 40% to $77.3 Billion worldwide in 2007, as reported by Chron.
Wind power industry alone witnessed sales growth of 68% and reached $30.1 Billion in 2007 as many new wind farms were established in China and the US. Besides, biodiesel and ethanol sales collectively increased by 24% and reached $25.4 Billion while sales of solar photovoltaic increased by 30% to reach $20.3 Billion last year. Clean energy industry continued to support sluggish economies worldwide to deal with present crisis.
According to the experts of Clean Edge, rising home prices and inching foreclosure rates are jointly pushing up sales in the global clean energy industry.
Investors too are aggressively pumping money into the companies of alternative energies, several of such companies located in Bay Area. Under present economic conditions, when oil prices going sky high, investment in the clean energy sector is obvious. Today, the crude oil prices have grown over three-fold in past five years, from 2003 to 2007.
Another big reason for spurt in sales of clean energy companies is the threat from global warming. Scientists across the world hold carbon dioxide responsible for rising global temperature. Governments and corporations support, along with rising prices of fossil fuels, are also helping clean energy industry to scale up.
Considering the buoyant growth in the alternative energy industry, Clean Edge predicted that the annual worldwide revenues will touch $254.5 Billion through 2017. Talking about individual sales of wind power, solar industry and fuel cell industry, they are expected to touch $83 Billion, $74 Billion, and 16 Billion respectively by 2017.
According to a research analyst at RNCOS, "The global alternative energy industry is witnessing phenomenal growth because of rising demand for carbon-free energy. Governments from across the world are uniting to combat global warming by supporting clean energy industry. Consequently, it will help to further encourage green energy providers to come forward and expand their currently low market share."
posted by RNCOS @ 12:55 PM,
The Irish government has planned to invest €90 Million in the R&D of clean energy to meet the growing domestic energy demand and to secure resources for future economic growth.
The Irish government has decided to invest €90 Million in developing research facilities of international standard in the country for promoting renewable energy and technologies by 2013. The Science Foundation Ireland (SFI) and Irish government signed an agreement to change remit of SFI for setting up a new energy research center in the country, as reported by Siliconrepublic.
The new initiatives taken by the government include rebate in taxes for companies spending on energy saving equipment, opting for energy-efficient transport, new regulations for building to reduce energy cost, conversion of public transport into biofuel-driven system, and move towards farming of energy crops in the country.
Minister Martin, speaking at the Energy Forum 2008, said, "It is important that the opportunities and challenges in the energy field are underpinned by the knowledge, understanding and human capital that investment in world-class research can provide", as reported by Siliconrepublic.
Turning itself into a hub of global green energy boom, Ireland is securing its future economic growth. The main cause of making huge investment into the Irish energy sector is a part of energy policy that calls for securing energy resources that promote competitive environment and environmentally-friendly solutions.
Another reason for government's keen interest in this sector is its strategy for science, technology and innovation. The Irish government is making every effort by investing in research and development to stay at the forefront for developing environmentally-friendly products and solutions. Considering the rapid industrialization and fast growing automation.
Moreover, a study conducted by Sustainable Energy Ireland to analyze the benefits of energy efficiency to the country's economy highlighted that the economic benefits will be around €300 Million annually if the country successfully meets the set energy efficiency target for 2020.
A Research Analyst at RNCOS said, "The Irish government is making every effort to promote green energy in the country which reflects government's serious approach towards energy demand. The new investment will greatly help in meeting the country's energy demands. Moreover, as the threat of global warming is looming high over the world, the investment in research and development of clean energy will help Ireland to fight it."
posted by RNCOS @ 12:45 PM,
The Japanese crude steel industry continues to grow as demand for crude steel increases from all quarters including automobile and construction industries as well as exports to other Asian countries.
The Japan Iron and Steel Federation revealed that 3.4% rise occurred in crude steel output of Japan in 2007 as compared to 2006. The total production last year was 120.19 Million Tons, highest since 1973, as reported by news.xinhuanet.com.
Specialty steel, used to manufacture vehicles and machinery parts, saw a rise of 2.4% in production to 26.14 Million Tons while the output of regular steel rose 3.7% to 94.05 Million Tons. The production target set up by the federation for 2008 is 118 Million Tons with YOY increase of 250,000 Tons.
The major reason for increase in the crude steel production in Japan is rising domestic demand for high-end sheet products used in ships and home electrical appliances. Consequently, steel producers have significantly increased the output to meet the escalating demand.
Besides, the automobile industry of Japan is also playing a vital role in pushing up the output of crude steel in the country. The year 2007 witnessed a hike in the production of automobiles, and correspondingly, an increased demand of steel. Thus, the output of the crude steel industry experienced an upsurge in Japan in 2007.
Another crucial factor leading to the increased output of crude steel in Japan is the growth in construction industry. Construction industry is growing rapidly in the country as home and condominium are being built to meet the shelter needs of people and subsequently, builders need steel to complete their projects. Therefore, the demand for steel has increased in the country.
Further, Japan's crude steel production is surging due to growing orders from other countries. Asian countries are developing and creating more orders for the crude steel industry in Japan.
According to a Research Analyst at RNCOS, "The steel industry will grow in the current year due to the healthy demand from the automobile industry in the country. Japan's steel producers are compelled to push up production capacity of steel in future in order to keep up with the increasing demand for steel in Japan. In terms of exports to other Asian countries, there is a need to increase the output to meet the growing demand."
posted by RNCOS @ 3:41 PM,
Chinese steel and iron industry has doubled its production in last four years, but it has become a cause of concern as the industry has pushed up the inflation.
According to the China Iron and Steel Association (CISA), the production of steel was recorded at 489.24 Million Tons and that of iron at 469.45 Million Tons in 2007, as reported by Forbes.
China maintained its top position of largest stainless steel produced in 2007 (its steel production was one-fourth of the global production). It surpassed Japan in production of stainless steel in 2006 and became the biggest producer in the world. Additionally, the steel alloy productivity also increased and reached to 16.6 Million Tons in 2007, high by 21.72% year on year.
Domestic and international markets of steel are creating huge demand for steel and iron, forcing increased production of both the elements. Biggest consumers of these two elements, infrastructure and automobile industries, are also witnessing high growth rate and putting pressure on the iron and steel industry to increase output.
Also, steel plant construction in China costs comparatively less than the developed countries due to cheaper technology and equipment, less energy cost, and cheap human resources. These factors are contributing to keep steel prices competitive among domestic and international producers.
However, consumption of steel in China is so high that being the biggest producer of steel, it could not fulfill its domestic requirements. It has to import steel from other countries and in December 2007, 1.33 Million Tons of steel was imported by the country.
China has doubled its production of steel in last four years, resulting in an increase in prices of iron ore and coal. This increase has impacted the domestic economy of the country and raised inflation significantly. As a inflation containment measure, the Chinese government is trying to rein the expansion of steel industry.
According to a Senior Research Analyst at RNCOS, "The demand of steel is running faster than the domestic production though China is the biggest producer of steel in the world. This has raised inflation in the country and now the biggest challenge before the government is to check inflation. As a short-term solution, the government has decided to cap the steel production. But it also has to ensure that steel production in the country matches the domestic steel demand."
posted by RNCOS @ 5:30 PM,
Gasoline demand in Japan has been declining for past two years due to increasing fuel prices but export of refined products is increasing and touched record high in 2007.
The demand for gasoline in Japan declined for the second consecutive year in 2007, which enabled refiners to export refined products, and consequently, the export touched a record high, as per the news published by Bloomberg.com.
There was decline of 1.7% to nearly 60 Million Kiloliters in sale of gasoline last year. The export of refined products increased by 27% and reached to 28 Million Kiloliters and crossed the previous record of 22.3 Million Kiloliters set in 1975. Among all the refined products, diesel export jumped 92% and reached 7.96 Million Kiloliters last year and alone contributed 27% to the total gains from export of all refined products.
This fall in the consumption of gasoline is due to rising prices of gasoline which pressurized the consumers, manufactures, and office building owners to look for methods of energy saving. Spiraling crude oil prices have surged cost of running electricity generators, cars, and boilers etc.
Also, Japan is a Kyoto Protocol signatory, which bound it to curtail the emission of greenhouse gases. And government's commitment to reduce the emission of greenhouse gases is declining the gasoline consumption in the country.
Slump in the demand for gasoline in the domestic market has encouraged refined product exporters to enhance their export to other destinations. Even many exporters in Japan have started investing in plant upgradation and shipping terminals to make use of the rising demand of petroleum products in the US, China, India and other Asian countries. Consequently, Japan export of refined products touched a record high in 2007 since 1957 when it began exporting.
According to a Research Analyst at RNCOS, "The import of crude oil has declined in Japan because of lesser demand in the domestic market. Despite that, it is still the third largest consumer of oil in the world after the US and China. However, the global demand for oil is very strong which has increased the export but decline in the domestic market is a cause of worry for the country because domestic demand plays the most important role in boosting the economy. To cope up with this problem, the government should take some steps, like giving subsidies to refiners."
posted by RNCOS @ 5:16 PM,
The boom in the biofuel industry in Iowa is evident but it has created concerns about increasing food prices as corn is used to produce ethanol.
A study accomplished by the Iowa Renewable Fuels Association titled, "Contribution of the Biofuels Industry to the Economy of Iowa", revealed that the annual contribution by Iowa's ethanol and biodiesel industries in the state's economy was $12.7 Billion last year, as reported by Desmoinesregister.
Iowa's biofuel sector is well stocked with biofuel. It has 28 ethanol refineries in the state, which have a capacity to produce 2.1 Billion gallons ethanol, and an additional 16 refineries are under-construction or expansion. Besides, there are 14 biodiesel refineries with capacity of producing 315 Million gallons diesel and another two are under-construction. In 2007, the biofuel industry estimated to have made a total contribution of $790 Million in state tax revenue.
There has been a strong boost to the usage of alternative fuels, like ethanol, extracted from corn and sugarcane and other biofuel, due to rising crude oil prices and Canada's stress on cleaner and renewable energy. The source of biofuel is the food crops that absorb the greenhouse gas (carbon dioxide) during growth and release it back when the biofuel is burned, making biofuels environmentally-friendly.
The rapid industrialization and spurt in the number of vehicles hitting the Iowa's roads have further pushed up the demand for biofuel in the state. Although the fuel demand is rising, the resources of oil and other fuels are limited. Hence, the Iowa government is extensively promoting biofuel as the primary source of fuel.
On the other side, critics have said that the benefits wouldn't be as impressive had the sector was heavily subsidized. Yet, it is also to be fully determined to what extent the indirect social and environmental damage corn-based ethanol industry in Iowa will cause. The global impact of rising food prices, particularly on the urban poor in maize importing nations, needs to be considered.
According to a Research Analyst at RNCOS, "The increasing concerns about global warming in the world are highlighting the need for increasing use biologically-generated fuels. Thus, growth in Iowa's biofuel market in future is quite evident. At the same time, concerns about increasing food prices becomes a major threat. The government is therefore likely to pursue the quest for other alternative fuels like biogas that have their source in waste materials rather than consumables."
posted by RNCOS @ 6:15 PM,
Geothermal energy projects are thriving in the US because of government support. This augmentation will further assist the country in satisfying the increasing energy requirements.
The Geothermal Energy Association (GEA) revealed the increased number of geothermal power projects in various states of the US, as reflected by survey conducted in January 2008, as reported by Interest Alerts.
Almost 86 new geothermal power plants are coming up in 12 US states, including Alaska, Wyoming, Arizona, Washington, California, Utah, Hawaii, Texas, Idaho, Oregon, New Mexico, and Nevada.
As per the GEA, from November 2006, there has been a rise of 35 projects in three new states. Once completed, these projects have capacity to supply about 3368MW of electrical power, doubling the US geothermal energy to 6304 MW from 2936 MW, which can meet the electricity requirement of six million houses overall.
The US is giving utmost significance to these geothermal energy projects as it wants to encourage renewable sources of clean, sustainable and domestic energy. The rapid development of geothermal energy as a sustainable and renewable energy source ensures its evolvement as a crucial source of energy in coming years.
Moreover, as the source of heat is the earth core, the production is expected to grow increasingly and utilize the benefits offered by the source. Earth core is anticipated to retain its heat for coming billions of years, leading to a boundless source of energy, thereby ensuring and encouraging the existence and continuity of geothermal energy projects.
Various federal and states of the US have also realized the importance of geothermal energy and hence they are also encouraging these projects by means of giving tax benefits, formulating favorable standards on production of geothermal energy, and eliminating trade barriers. This initiative by the government is revitalizing the geothermal energy projects and pushing them to grow further.
According to a Research Analyst at RNCOS, "the US government support is enabling its geothermal energy industry to grow and develop at moderate pace. Geothermal energy growth will benefit the country in multiple ways, like it will pave the way for production and consumption of clean and renewable energy which will also assist in fighting against global warming and will aid in fulfilling the growing power demands of the US."
posted by RNCOS @ 4:58 PM,
The wind energy sector is rapidly evolving in Iowa which is all set to produce 2015 MW electricity by 2015, which will be more than required domestically in the state.
Iowa started a wind turbine manufacturing industry in 2006. The new industry would create hundreds of jobs and investment of millions of dollars on equipments and factories. The state announced plans to increase the electricity generation by wind turbines phenomenally, as reported by Desmoinesregister.
Chet Culver, Governor of Iowa, has challenged the people to generate more electricity by wind. The state has set the target of generating 2015 MW electricity by wind through 2015. The studies have projected that the state will exceed the target, showing the state will generate more than 2000 MW power by 2011, as reported by Iowa Democratic Party. One of the reasons for opting wind energy is that Iowa is naturally gifted with windy land areas and has capacity to generate power five times more than its own requirements.
The growth in the wind energy sector of Iowa is pushed by the European and domestic companies. They are trying to satisfy environmental utilities, which are demanding more electricity generation by wind, to meet the rising energy requirement in the state. Moreover, wind energy farms are boosting the rural economy of the state. Majority of wind energy farms are in the northwest and north-central regions of Iowa, generating power for Iowans. And many more farms are under-planning and development process.
Another factor which has contributed in the growth of wind energy is cost competitiveness of producing electricity by wind with other energy resources.
Also, legislative initiatives are the fundamental forces that have driven the growth of wind energy industry. These initiatives established long-term sectors to support the growth. Moreover, innovative policies helped in generating interest among consumers for buying clean energy and encouraged utilities to concentrate on exploiting non-renewable energy resources.
According to a Research Analyst at RNCOS, "Wind energy plays a prominent role in Iowa's economy. It is not only meeting the domestic power requirements but also giving energy to other European countries. The government has contemplated to take advantage of its geographical location by paying adequate attention towards developing the wind energy industry. At the same time, whereas other sources are expensive, limited, and disastrous for the environment, wind energy is cost-competitive, in excess, and clean. So it will boost Iowa's economy in near future."
posted by RNCOS @ 5:49 PM,
Limited supply and low oil demand will increase the global oil production. Also, people and governments worldwide are increasingly adopting oil alternatives, as they are cheap and environmentally-friendly.
According to Peter Davies, Special Economic Advisor at British Petroleum (BP), one of the largest energy companies in the world, the production of oil might increase in coming years because of lack of demand for petroleum worldwide and not because of check on supply, as reported by Reuters.
According to BP, the proven oil reserves of the world still stand at 1.2 Trillion barrels, which can keep the current level of oil production for next 40 years (2008-2048). However, slump in demand for oil and decreasing supply is adding to the total oil reserves.
Burgeoning oil prices will be the chief cause for fall in global oil demand in the years to come. The oil prices have already touched the peak price of $100 per barrel in the beginning of January 2008. Besides, climate policies will also contribute to low global oil consumption as environmentalist worldwide are emphasizing on reducing the greenhouse gas emissions. These efforts are and will force consumers to look for alternatives of oil.
People have already started focusing on alternative sources of energy like wind energy, solar energy and biological fuels. Biological fuels have become the focus of attention now-a-days because they cause less pollution than oil. Moreover, these alternatives do not burn hole in the pockets of consumers.
According to the industry experts, another reason for decline in the global oil supply is the lack of investment in oil rich nations. Higher duty regimes are driving investors away and lack of investment is hampering oil production growth. The world will have to face tough challenge because of lack of supply and many countries around the world are passing through a transition phase of development, so they need oil (fuel) to build industries and automobile sector.
According to a Research Analyst at RNCOS, "The global oil production is swelling due to lack of demand and low supply. The environmental and economic policies are boosting the usage of alternatives of oil such as solar energy, wind energy, and other renewable resources, which produce less pollution and are relatively cheaper. Countries worldwide should intensify their efforts of using more and more alternatives as they will cut both pollution and prices."
posted by RNCOS @ 4:03 PM,
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