Deloitte’s Global Energy & Resources Group have just published its Energy Predictions 2011 report. The report is based on in-depth interviews with clients, industry analysts, and senior energy practitioners from Deloitte member firms around the world.
Main Findings from the Report
Emerging markets break out as the fastest-growing area for M&A
M&A activity in the energy industry appears to be occurring in waves, with the oil and gas companies from emerging markets leading the way. A second wave of M&A is now occurring that involves state-owned companies from Russia, South Korea, Brazil, and Malaysia. The third wave, which is only now beginning to take shape, involves national oil companies from India and the CIS region.
Moving forward, a company’s post-merger integration skills will be paramount, particularly in emerging markets where complex financings, cultural differences, and uncertain regulatory environments often impede the realization of anticipated synergies.
China’s growing partnerships with resource-rich nations will likely provide an economic boost to the republic as well as to the global economy in the years ahead. These partnerships will have a positive effect on energy markets as well as on infrastructure and industry.
Prospects for renewables are looking up as solar goes mainstream
In 2011 and beyond, solar technologies will increasingly trickle down from industrial users to be embraced by residential consumers and small businesses.
Electric cars give auto markets a jolt
Consumers have always had plenty of options concerning the look and feel of their cars and trucks, but they will soon have just as many choices concerning what powers them.
Hybrid electric vehicles will likely remain popular, but plug-in electric hybrids and pure electric vehicles are also likely to proliferate based on consumer demand.