Global demand for energy to rise but it may not mean higher prices, says expert

World demand for energy will double by 2050, according to Professor Peter McCabe, Head of the Australian School of Petroleum at the University of Adelaide. But he believes more efficient recovery methods and the increasing role of renewables will keep a lid on prices.

McCabe told the Papua New Guinea Mining and Petroleum Investment Conference last December that oil consumption in the United States and Europe has remained static for the last 40 years, due to changes in energy use. He described PNG’s gas reserves as ‘relatively small’ in the global context.

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Why many Papua New Guinea companies become conglomerates

Conglomerates have become a rare breed in developed economies; the strategy of diversifying across different industry sectors tends to be punished by investors who prefer specialised players. But, in Papua New Guinea, industry diversification is commonly used as a way to grow, as David James observes.

The conglomerate strategy, which is sometimes described as pursuing ‘economies of scope,’ is partly a response to the relatively small size of PNG’s economy. When companies achieve a sizeable market share in one market sector, they often find it difficult to grow further, so to expand they look further afield.

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Forestry leader says PNG industry facing challenges from China

Papua New Guinea’s forestry faces fierce competition and pricing challenges, Chief Executive of the Forest Industries Association, Bob Tate, tells Business Advantage PNG. He says developments in China are troubling for the sector.

Tate says the weakness in export markets ‘is mainly a function of both economic downturn in China and the Chinese government embarking on a program of restructuring their industry.

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