Renewable Energy Disruption

12 Non-Containerised Trade Cont.

12.3 Renewable Energy Disruption

As the world is pushed towards a reduced reliance on fossil fuels, it is believed that the liquid bulk sector, the crude oil and refined product markets in particular, will see significant reduction in demand, starting by the medium-term and continuing into the long-term at increasing rates.

Renewables will likely create entirely new localised trading networks and do this at the expense of global oil trading. This will see a shift away from large scale crude exports and refined oil product imports to more regional power production based on renewables. Countries will focus on producing their own electrical power whilst their demand for shipped liquid bulk imports will decrease ever more substantially over time.

Australia is potentially well placed naturally to make use of renewable energy sources such as the sun for solar power generation, however, current political direction will need to change, and major investment will be required if this is to materialise in good time.