The US will surpass Saudi Arabia and Russia as the world’s top oil producer by 2015, according to a report published by the International Energy Agency (IEA) on Tuesday — with significant implications for industry and manufacturing in the coming years.
Gulf producers have scaled back investment in anticipation of a US shale oil boom and oil glut.
The shift in global energy production will put UK industry at a serious competitive disadvantage as a result of the low price of energy in rival nations, chiefly the US, the IEA says. As much as 10 percent of Europe’s market for energy-intensive industrial products, including iron and steel, glass and chemicals, could go to competitors within the next decade, it said. The finding could have profound consequences for jobs, the economic recovery and climate change policies.
The IEA — regarded as the gold standard for energy data — said that Europe, Japan and other nations were being outpaced by the US because of the low price of energy in the US resulting from the shale gas boom there.
In its annual World Energy Outlook, the organization said that the price differential was likely to endure for decades.
“Today, there is a substantial gap between the US and Europe in gas and electricity prices,” said Fatih Birol, chief economist at the IEA and one of the world’s foremost analysts of energy. “This is a serious problem for Europe. It’s even more serious because this differential in prices will remain for at least the next 20 years.”
He predicted that energy-intensive industries in the UK and Europe would suffer a 10 percent decline in their international market share.
“This will have huge costs in terms of employment, as there will be significant losses. There will be a knock-on effect on the whole economy,” he said.
Energy prices around the world have been transformed by the US push to exploit fracking for shale gas, the controversial form of gas extracted by blasting high-pressure water and chemicals at dense shale rocks.
Only four years ago, according to the IEA, Europe’s gas prices were about the same as those in the US. Now, they are three times higher. In Japan, prices are about five times higher.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB