This year's International Energy Agency "World Energy Outlook" report projects six major trends for the future of the global energy market. Overall, it is bullish for the United States and bearish for Europe. Based on the findings, Big Oil stocks such as Exxon Mobil (XOM), Chevron (CVX), Royal Dutch Shell (RDS-A) and Petroleo Brasilerio (PBR), among others, should be rewarding for long term investors.
While the IEA sees the United States being the top oil producer by 2015 due to fracking, that success will not be experienced around the world. As the IEA notes, "good geology alone is not sufficient to replicate the U.S. experience. "According to a National Geographic article, "Outside of the United States, there's neither the legal environment nor the oil services industry capacity to make shale oil and gas development worth the cost. More than 6,000 wells were drilled for unconventional oil in the United States and Canada in 2012, and only 100 outside of North America."
In what should be a surprise to no one, the IEA sees fossil fuels continuing to dominate the global energy market. Renewable energy production is expected to double by 2035. But that will only result in fossil fuels providing for 75% of the world's energy, down from 82% today.
Of the world's energy needs, two-thirds of the growth will come from Asia.
The IEA expects demand for oil to increase to 111 million barrels a day by 2035, a 27% increase. Fully two-thirds of that will emanate from Asian markets. China will still lead in consumption. But "the volumetric growth in Indian demand (between 2020 and 2035) is larger than that of China," predicts the IEA.