All sectors across the global energy industry have seen growth in the potential investment value of new projects announced this quarter (Q3: July – September 2011), according to the EIC Monitor. The EIC Monitor is a quarterly report from the EIC, the leading trade association for UK companies that supply goods and services to the energy industries worldwide.

The total potential investment value of new projects this quarter is US$484 billion - up 65% on last quarter, while, overall, the number of new projects is down 9% on last quarter’s report. The oil & gas sector has seen the largest rise in potential investment value of new projects, while renewables continue to perform well with a rise of 31% and power remains relatively flat with a 2% increase.

EIC Monitor tracks over 8,800 active and future projects in the global energy industry and provides a barometer, broken down into oil and gas (downstream, midstream, upstream), nuclear and conventional power and the renewables sectors. Data is analysed by the number and value of new (both active and proposed) projects recorded by the EIC each quarter.

Key highlights of Q3 2011 report (1 July – 30 September 2011):

• Overall this quarter, there were 508 new projects announced across the global energy supply chain with an estimated total value of US$484 billion, compared to 559 in Q2 2011 totalling US$293 billion and 421 new projects in Q3 2010 worth US$310 billion.

• The upstream sector has seen a slight increase in the number of new projects up from 65 in Q2 2011 to 67 in Q3 2011. These represent a 95% increase in potential investment value over the same period largely due to two major project announcements which are at the early stages of development.

• The midstream sector has seen a 26% increase in the number of projects and a 315% increase in project value since Q2 2011, up from US$45 billion to US$142 billion in this quarter. This huge increase is solely due to the proposed US$100 billion Trans-Asian Oil and Gas pipeline.

• In the downstream sector, the number of new quarterly projects in Q3 2011 has increased by 11% since Q2 2011 with an 88% increase in the total potential investment value to US$99 billion.

• In the renewables sector while the number of new projects has decreased by 21% in Q3 2011, the potential investment value has risen from US$85 billion to US$111 billion, a 31% rise from Q2 2011.

• In the power sector, the number of new projects has decreased by 22% this quarter with the potential total investment value of new projects remaining almost the same at US$93 billion in Q3 2011.

In nearly all cases newly proposed projects must first undergo various planning and consent approvals which may take several years. Also, early stage proposals do not necessarily have financing agreed and in place. Thus there will always be a proportion of projects that do not gain consent and/or finance.

Commenting on the EIC Monitor, Mike Major, CEO of the EIC said,“The energy industry continues to hold steady. While the number of new projects announced this quarter is down on last quarter’s report, the corresponding increase in the value of new projects across all sectors of the energy industry is an encouraging sign that confidence is slowly returning to the market and there are plenty of new business opportunities for the energy supply chain.”

Tags: EIC Monitor