Energy in a Globalised World - Energy and Climate: How to Achieve a Successful Energy Transition - page 8

for increasingly open competition. This situation has fostered an outbreak
of concentrations (mergers and acquisitions) designed to make the newly
created industrial groups large enough for the scale of the targeted
markets.
This progressive concentration of industrial companies has given
greater power to the international companies operating in the energy
sector [5] and reduced the role of the states.
These concentrations first took place in the oil sector with the Exxon-
Mobil, BP-Amoco-Arco, Chevron-Texaco, Conoco-Phillips and Total-
Fina-Elf mergers.
They also affected the electricity production sector, with numerous
mergers in Europe strengthening the position of some major players
such as E.ON, RWE, Suez and EDF.
The situation has not yet stabilised in this sector and changes are still
taking place, as illustrated by the recent merger between Suez and Gaz
de France and the acquisition of Endesa by ENEL, following E.ON 0 s
takeover bid.
Opening the gas and electricity networks to third parties represents
another means of increasing competition. The networks are managed
independently of the energy suppliers which use them at the same time.
In Europe, the internal energy market must now be open and competitive.
This involves separating the transport networks from the production
means, under the control of the national regulation authorities.
Globalisation of the economy has led to greater dependency on oil, due
to the ever-increasing demand for petroleum fuels and more generally
fossil fuels. We have recently seen that the global economy could cope
reasonably well with an increase in the cost of energy. In contrast
however, an interruption, even temporary, in oil supplies would cause
a major crisis.
In this globalised economy, investments and the decision processes
depend more and more on the international groups in the energy sector,
at least during the energy conversion and supply stages. In addition, since
the energy policies within the European Union are becoming increasingly
integrated, fewer decisions can be made at a purely national level.
The increasing role of the emerging countries
Following the globalisation of the economy, an increasing proportion of
the industrial activities, in particular those consuming large quantities of