Every once in a while, there is a piece of energy news/reporting that is so good, so clear and compelling, I feel like emailing it to everyone I know. Nowadays, fortunately for them, I don't have to do that anymore, this is what a blog is for :)
E&ETV has posted their May 17th presentation by McKinsey Global Institute on their recent report, "Curbing Global Energy Demand Growth: The Energy Productivity Opportunity".
This is a MUST watch video, and I recommend that open a second browser window so you can see the slides that are being discussed by separately clicking on the SLIDES here:
The most fascinating aspects of this presentation to me were:
#1. Who Knew? Who knew that in the next 20 years, it’s the “Middle East” that is responsible for the biggest global impact in energy demand and use. And we all thought it was the Chinese. Yes, the Chinese are second in energy demand growth, but the Middle East is, percentage wise, on an even bigger tear into more energy demand.
#2. Bitter irony: Energy prices go up, but demand doesn’t necessarily go down globally? Because those very same middle easterners have so much more money/consumption that they EQUAL the diminished demand from the developed world.
#3. U.S. will remain an energy hog, even 20 years from now, even with ½ the growth rate of China and Middle Eastern energy demand. Our hogginess could be substantially abated with policies to encourage more efficiency – no surprises there. But what is surprising is how grossly lazy we are in present efficiency policies. U.S. TV sets, for instance, have a “dormant” power draw of 60 watts (meaning when they are “off” they are still burning through 60 watts.) European sets are mandated to 1 watt. Simple stuff, and no impact to quality of life, but it speaks to whether you want a government regulating efficiency, or expect the market to efficiently do this. Readership knows where I fall on that spectrum (hint: U.S. markets are failing us).
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