Global Expansion and Energy Consumption
Investors couldn’t be happier with the long-term economics of oil and gas as supply-and-demand of global energy tips to the “demand” side of the scales. Smart and sophisticated individuals, prestigious U.S. and foreign investment houses both here and abroad, pension and government funds, major industrial companies and banks often look to oil and gas to deliver consistent profits and returns.
The oil and gas industry is a complex, global industry that impacts all aspects of our lives. According to the US Energy Information Administration, transportation alone accounts for about 63 percent of petroleum consumption. The remaining uses are non-energy related, including lubricants and asphalt production, agriculture, and industrial use. From a global perspective, recent years have shown that a shift is taking place in demand patterns, consumption in Asia is now exceeding consumption in North America. This shift is the result of individuals and countries all around the world working towards a higher standard of living. This global expansion of the middle class is going to require an enormous amount of energy, even with all of the efforts to conserve energy we anticipate that oil and gas will be a big part of this energy revolution. As the world economy becomes more intertwined than ever before, we see an unprecedented opportunity for potentially optimal yields in today’s increasingly volatile world energy market and that the long-term trend for the oil and gas market is positive.