Brussels, 14/11/2013 (Agence Europe) - The International Energy Agency (IEA) forecasts difficult economic consequences for Europe due to much higher energy costs than in the USA which is boosted by shale gas.
Future of oil guaranteed. Despite global demand for oil growing strongly - led by China and India (global consumption could reach 101 million barrels per day in 2035 - in other words, 14 million more in the space of 25 years) - non-conventional fossil fuels will compensate for the decline in conventional oil, the IEA forecasts in its 2013 annual outlook study.
Europe and Japan to suffer. The abundance of shale gas and the continued rise in the number of wells in the US enable the US to benefit from wholesale prices three times lower than in Europe and five times lower than in Japan. This better gas market also enables the US to produce less expensive electricity - a competitive advantage which will last until 2035. The IEA forecasts heavy economic consequences for the EU, where energy-intensive industries will suffer on export markets. The future is all the more gloomy as the IEA does not see Europe significantly exploiting shale gas for another ten years. (EH/transl.fl)