ENERGYSECTORREPORT - Figure 8. Levelized* Cost of Energy...

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Figure 8. Levelized* Cost of Energy and Subsidies. *Includes: maintenance, fuel, and operational costs. Source: US Energy Information Administration Figure 9. Cost per Well (2008). Source: US Energy Information Administration Table 1. World’s Largest Oil Companies. Table of Contents Executive Summary 2 Energy Sector Insight 2 Risks and Catalysts 2 Figure 1. Oil and Natural Gas Spot Prices. 3 Figure 2. Regional Upstream Costs. 3 Sector Overview 3 4 Sector Label and Classification 4 4 Figure 4. Relative P/E: Energy Sector. 5 Figure 5. DuPont Analysis (ROE) Energy Sector. 5 5 Energy Sources 5 Fossil Fuels 5 Figure 7. World Primary Energy Production by Source 6 Nuclear Energy 8 Renewable Energy 9 Figure 8. Levelized* Cost of Energy and Subsidies. 11 SWOT Analysis 12 Figure 9. Cost per Well (2008). 14 Table 1. World’s Largest Oil Companies. 15 Notes 16 Figure 10. Cost per Offshore Rig. 17 Figure 11. Worldwide Rig Count. 17         E nergy:   A   Dy na m i c   Par ad ig m 1
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Sources 17 Executive Summary Energy Sector Insight: Throughout the history of the world there have been three industrial revolutions that have transformed our existence: coal and the steam engine, oil and the internal combustion engine, and the evolving revolution of renewable energies. The steam engine facilitated trains and boats to transport people and goods more effectively. Today, oil has globalized local economies, and makes all modern transportation possible. When the renewable energy industrial revolution transpires, it will revolutionize the way energy is obtained and how we move throughout the world. Risks & Catalysts During the past decade, the world has experienced GDP growth of 6.4% CAGR 1 . The next ten-years, world GDP growth will diminish to 4% annually concentrated in developing nations 2 . The energy sector’s net income is strongly correlated with the world GDP (R 2 of 0.85). Therefore, the energy sector should experience significant future growth opportunities. Expansion will be bifurcated between developed and developing nations, with renewable energy growth focused in the developed countries and fossil fuel growth, comprising the most significant growth, in the developing countries. In the developed world, continued impediments to fossil fuel production and consumption will increase costs to producers and consumers. Governments present opportunities through grants, loans, and subsidies provided to companies developing renewable energies. Government support reduces the cost of capital and equity invested. The demand for reliable inexpensive energy in developing and frontier regions is growing faster than
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This note was uploaded on 04/26/2011 for the course BUSINESS A 00 taught by Professor Misc during the Spring '11 term at Saint Louis.

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ENERGYSECTORREPORT - Figure 8. Levelized* Cost of Energy...

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