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Informa Economics

A Multi-Client Study Proposal
The New Energy Dynamics:  Implications for Agriculture, Food, Biofuels and Transportation
May 2012


Special Note - December 19, 2012

Dear Colleague,

Informa Economics is pleased to announce that it has issued its comprehensive multi-client study The New Energy Dynamics: Implications for Agriculture, Food, Biofuels and Transportation. The report is available for immediate delivery to subscribers.

The report answers key questions regarding the outlook for energy supply/demand and prices and the resulting economic impacts, such as:


What is the outlook for petroleum and natural gas prices for the next decade, and will the current divergence between prices on an energy-equivalent (Btu) basis be sustained?

What are the cornerstones of U.S. energy policy, and what is the policy outlook now that voters have re-elected President Obama and returned a divided Congress to Washington?

How much are U.S. crude oil and natural gas production likely to expand over the next decade, as a result of the shale revolution? How will the substantial tightening of Corporate Average Fuel Economy (CAFE) standards affect domestic petroleum consumption?

What are the prospects for energy trade, and will exports affect the prices of the primary energy sources differentially?

How widespread is the adoption of natural gas as a transportation fuel likely to become?

What impacts are new energy realities likely to have on the agriculture, food, biofuels and transportation sectors and even the broader U.S. economy?


I urge you to subscribe to this important and timely study. A prospectus for the study, which contains an enrollment form, is found below, along with the table of contents from the report.

If you would like to enroll or have any questions about the study, please contact me at (901) 766-4594 or

Thank you in advance for your consideration.

Scott Richman
Senior Vice President, Consulting
Informa Economics
775 Ridge Lake Blvd., Suite 400
Memphis, TN 38120
Tel. 901.766.4594 Fax 901.766.8158



Over the last few years, as the US and world economies have recovered in fits and starts from the 2008 recession, the prices of different forms of energy have taken divergent paths. Most dramatically, crude oil prices have recovered sharply from their lows at the depth of the financial crisis, while US natural gas prices have fallen further. US natural gas prices have become delinked from crude oil prices and now trade at a sizable discount to crude oil when measured on an energy-equivalent basis. This has significant implications to users of gasoline, diesel and natural gas, including those in the agriculture, food, biofuels and transportation industries.

Despite rising production, the US still imports almost half of the petroleum that it uses. Accordingly, US prices of crude oil remain inextricably linked to world market conditions, and, as a result, US prices are subject to volatility connected to both market and geopolitical risks.

On the other hand, there is not a tight price arbitrage in world markets for natural gas, because it is difficult and expensive to transport natural gas over long international routes, particularly those requiring multimodal shipments. In the US, the development and adoption of new technology specifically hydraulic fracturing (or "fracking") and horizontal drilling has enabled vast quantities of shale gas reserves to be accessed economically. As a result, dry shale gas production in the US increased from 1.0 trillion cubic feet in 2006 to 4.8 trillion cubic feet in 2010, and it is preliminarily estimated that production reached 7.2 trillion cubic feet in 2011; meanwhile, total dry natural gas production rose to 23.0 trillion cubic feet in 2011 from 16.1 trillion cubic feet in 1986, up 43% in a quarter century.

This situation raises several interrelated questions. First of all, can the current price spread between crude oil and natural gas be sustained over the medium-to-long term? If so, how will US-based companies adjust their operations to this new reality, and how will it affect their competitiveness and profitability? More specifically, how will all of this impact the agriculture, food, biofuels and transportation industries?

The entire prospectus and enrollment in pdf form    Table of Contents

To obtain additional information or to enroll, please contact:


Dr. Bruce A. Scherr
Chairman of the Board and CEO

Informa Economics
775 Ridge Lake Blvd., Suite 400
Memphis, TN 38120
Phone: 901.766.4511
Fax: 901.766.4471


Mr. Scott A. Richman
Senior Vice President

Informa Economics
775 Ridge Lake Blvd., Suite 400
Memphis, TN 38120
Phone: 901.766.4594
Fax: 901.766.8158




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