Primary Energy Resources Investments
The primary energy market should attract investments worth 24 trillion dollars till 2035. Of these, 58% will go to oil and 37% to natural gas. Investments in coal mines should not exceed 4% of the total investments (Fig. 3.60).
These investments are expected to be equally spread across the regions, with the exception of North America, which should be investing massively in unconventional oil and gas. The American continent (North and South America) should represent 40% of the worldwide investments, with North America accounting for 27% (Fig. 3.61).
Fig. 3.60 Primary energy investments (© OECD/IEA, Investment 2014)
Fig. 3.61 Primary energy investments per region (© OECD/IEA, Investment 2014)
In the oil market, the upstream segment (exploration and production) should dominate with an estimated 80% of total investments. Asia is expected to reinforce significantly its transportation and distribution capacities in order to sustain both production and demand growth, as well as to diversify the origin of resources. North America will gain a significant share of the upstream investments. In South America, Brazil and Venezuela will be the primary targets for investments (Fig. 3.62).
Fig. 3.62 Oil investments per region (© OECD/IEA, Investment 2014)
Fig. 3.63 Natural gas investments per region (© OECD/IEA, Investment 2014)
In the natural gas market, North America and Eurasia will dominate. Asia Pacific (including Australia) will see a number of important investments as well. In this geography, investments in transportation (midstream) are more important than in the oil market, due to the inherent issues related to natural gas transportation. North America invests also considerably in transportation and distribution infrastructures to supply its shale gas (Fig. 3.63).
The coal market will continue to be dominated by Asia. The International Energy Agency (2014) expects China to keep investing in coal mines to meet the growing demand for electricity in the country. Other Asian countries should follow suit, although at a slower pace (Fig. 3.64).
Finally, biofuels should continue to develop, essentially on the American continent, and notably in South America, where they are already fairly well developed. Asia should remain massively dependent on oil (Fig. 3.65).
Fig. 3.64 Coal investments per region (© OECD/IEA, Investment 2014)
Fig. 3.65 Biofuels investments per region (© OECD/IEA, Investment 2014)