Global energy dynamics are changing rapidly. New supplies such as shale and technological advances in energy efficiency have impacted on prices and productivity as they reach economies of scale. Shifts in demand due to China's changing development model and global environmental consciousness are shifting patterns of energy mix. The collapse of energy prices worldwide are threatening the economies of energy producing countries and capital-intensive extractive operations such as deep-water drilling.
The following collection of insightful McKinsey and Company analyses in November 2015 throws light on what is probably the most important economic and geopolitical game-changing sector in the first half of the 21st century -
- A Podcast by McKinsey Houston office energy director Scott Nyquist gives an overview of the future of energy. He summarizes the myth of "peak oil", the shale-gas boom, and the most promising renewable technologies MP_The_future_of_energy
- A cheat sheet on lower oil prices highlights the winners and losers of low oil prices plummeting from $107 to below $50 a barrel. It warns that even $60 a barrel is not sustainable, so market dynamics are likely to push prices up in the longer term to more sustainable levels.
- Peering into energy's crystal ball predicts that over the next eight years, gas will be king; solar will grow faster, though remain relatively small compared with conventional energy sources; coal will grow more slowly but remains huge; and value will continue to migrate from generation to services.
- Technologies that could transform how industries use energy details 33 innovations to help industry improve energy use. These innovations span nine categories: advanced industries, cement, consumer goods, mining, oil refining and chemicals, power, pulp and paper, steel, and those that can be used generally.
- Navigating in deepwater: Greater rewards through narrower focus explains how deepwater drilling can stay in the game in a low oil price scenario.
For a tour d'horizon of how the game will play out in the future, visit highlights in IEA's 2015 World Energy Outlook Report