Global Economics: Oil

World Economy Status

• Economic reports from the IMF indicate significant improvements to the world economy

• Major restructuring of bank balance sheets settling bad debts

• Major focus on creating stability

Global Financial Stability

Market trends

• Overall macroeconomic (whole economy) risks have declined

• Improved conditions are slowly trickling down to affect public markets

• Public market is still hesitant to spend• Credit is becoming increasingly more

available to banks around the world• Risk Appetite

o Expectation of returnso Term increase for low interest rates

Spending & Opportunity Cost for US

America spent $700 billion on oil last year-$380 billion paid for imported petroleum-$50 billion net from domestic oilIf all of the $330 billion spent last year on imported oil remained in the US, it would generate nearly $1 trillion in new economic activity and over 3 million jobsRaise GDP 2.5%

History provides us two rules by which to avoid recession caused by oil prices.- Crude oil expenditures should not exceed 4% of GDP.- Oil prices should not increase by more than 50% year-on-year.

By the Numbers9.2 million people employed by the U.S. oil and natural gas industry1.4 million jobs the industry could create by 2030 with the right government policies in place to expand access to domestic natural resources$86 million a day paid to the federal government in royalty payments, rents and bonus fees.$100 billion paid to the federal government in rents, royalties and lease payments for production since 2000.U.S. energy demand will grow 20% between now and 2035.

Energy Efficiency

• 12 Major Global Economies use 63% of the world’s energy

• United States ranked 9th out 12

• United Kingdom ranked 1st

• China and the European Union both ahead of the USA

• United States Ranks last in transportation energy efficiency

Energy Demands

Daily Demands for oil per country (2012)1. US – 19.15 million barrels2. China – 9.06 million barrels3. Japan – 4.45 million barrels4. India – 3.32 million barrels5. Russia – 3.2 million barrels6. Saudi Arabia – 2.81 million barrels7. Brazil – 2.6 million barrels8. Germany – 2.44 million barrels9. South Korea – 2.38 million barrels10.Canada – 2.28 million barrels

Countries Oil Production

Future of Oil

Future of Alternative Resources

• 49% of the new capacity commissioned in the U.S. in

2012 was renewable.

• Solar panels have dropped in price by 80 percent

over the last five years.

• Solar will soon be at cost parity in many markets in

the world.

Cutting Edge Energy Technology

New Energy Technologies Inc.

Projects currently in Development:

Motion Power TM

• Harnesses a vehicles excess energy as it decelerates.

• Installed at sites where vehicles are in the process of decelerating before stopping.

o Tolls, Off ramps and high traffic intersections.

• Kinetic Energy generated from moving vehicles if captured at any moment, would power a quarter million homes a day.

Future Government Energy PlansAustralia

“Our climate is changing. The evidence is unequivocal. Climate change won't just damage the natural environment; it also poses risks to our economic prosperity.” Clean Energy Future of Australia

With a budget of $3.2 Billion, the Australian Renewable Energy Agency plans too...

• Research, Develop and commercialize all renewable energy throughout Australia by 2050

• Develop new clean technologies reducing harmful emissions• Increase the usage of renewable energy