We've often heard the familiar warnings that the world's natural resources dwindle year after year, inching humanity closer to a point of no return. Damage to earth's forests, oceans and atmosphere, however, may not be enough to persuade policymakers to take bold steps toward cleaner, alternative energy sources and carbon emission reductions goals. Such steps shape global energy markets and trends, as does energy diversification, supply and demand. Unpredictable events, such as the Fukushima nuclear disaster, can also mold the energy markets of the future. Thus, it is critical to examine the various moving parts involved in world energy markets in order to accurately assess the future of these markets.
A few characteristics of global energy markets give some context for what we should expect in the future. The rise and fall of energy prices have ripple effects across other energy and energy-related industries. OECD countries, including the United States, are demanding less and less oil, while burgeoning economies in East Asia see an increase in demand for petroleum that drives an expected overall increase in global demand for oil in the coming decades. Countries such as China and Germany are heavily subsidizing solar power, and new technologies in wind and solar could enable more efficient harnessing of these energy sources. And finally, much of the predictions for the future of global energy markets depend on two critical points: bringing Iraq's vast oil reserves online and the potential of unconventional oil and gas extraction (by fracking, for example), especially in the United States.
