Lower energy efficiencies, swift industrialization and vigorous growth in the emerging economies of Asia, Latin America and Europe have accelerated world crude oil and natural gas demand, of late. Galloping demand over the past six years, mostly from China, India and the US, which look to devour more energy and ensure continuous supplies to keep their economies rolling, has put pressure on the oil supplies. Consequently, it has resulted in the steady rise of the energy prices globally, with oil prices hitting record-breaking $100 per barrel, recently.
China is an increasing net importer of oil and other fossil fuels, in spite of having extensive energy reserves, as its crude oil imports scaled an all-time high to reach 163.17 million tons in 2007, an increase of 16.9% from the previous year. The high consumption of oil in the US remains the biggest reason for the sustained growth in the global demand.
There is a sign of mounting uncertainty as energy production has declined in major oil-producing nations.The Middle East countries which possess 60% of today's known oil reserves have been hit hard by the unpredictable political situation in the area, including the US war on terrorism. The assertive geo-strategic significance of Russia- the main supplier of energy to the EU- too has a major impact on the global energy prices and has undermined petroleum-related exploration.
Geopolitical instability has been a cause of concern and is hampering investment in both oil and natural gas pipelines infrastructure, creating future transportation bottlenecks. Intensifying government control over energy resources in a number of countries, including Russia and Venezuela, is unfavorably impacting world petroleum-related energy supply growth. However, the escalating gap between demand and supply of energy has undoubtedly questioned the future energy security. |
