Former US Secretary of Energy Spencer Abraham told delegates at the MARHedge World Wealth Summit yesterday to expect growing investment opportunities in areas such as nuclear power, liquefied gas and clean energy technologies as increasing demand for energy continues to test supply across the globe.

Mr. Abraham was sworn in as the tenth Secretary of Energy on January 20, 2001 and held the post until February 1 this year. He previously represented Michigan in the United States Senate from 1995 to 2001.

With the International Energy Agency forecasting a 60 percent increase in global energy demand between 2005-2030 and the US Department of Energy forecasting a growth in overall demand for oil worldwide from 85 million barrels to 121 million per day by 2025, the former energy secretary anticipates a number of trends to result.

More interest in domestic power production capabilities and a growing concern about greenhouse gas emissions and global climate change will bring more investment in and development of nuclear power. The nuclear industry will see significant changes and a real resurgence over the next two decades, he predicted.

?Companies engaged in this type of technology will be active in that period and it means that those who provide anything from components to insurance for nuclear will see activity as well,? he said.

Mr. Abraham also expects a worldwide natural gas marketplace to emerge since current estimates show that by 2025 the US could be importing 25 percent of its natural gas from outside of North America.

?It means that the liquefied natural gas sector is likely to become a very active sector in the next 25 years. It means that as we have had in the oil marketplace, we will see emerging a worldwide mass marketplace and opportunities in that marketplace for investors to make prudent investments successful.?

He also sees opportunity for investments in liquefied gas facilities and increased focus on natural gas producers such as Russia and Australia.

Growing political concern about carbon emissions will inevitably lead to a federal US framework, which he said would have a profound influence on power generation in the US.

?It will support growth in nuclear power production and certainly lead to growth in the renewable energy sector with particular focus on wind and solar,? he said, adding that some type of carbon credit system might also emerge.

In the face of higher costs, environmental challenges to coal and the length of time it will take to bring in nuclear energy, Mr. Abraham said solar energy and wind are going to be in a more competitive position particularly in light of the substantial tax incentives to make renewable energy competitive.

These energy sources, however, continue to face local restraints including the lack of desire to have such plants in anyone?s backyard and the lack of metering systems to allow solar users to sell to the grid to offset their costs.

Mr. Abraham said there will be substantial opportunity for technology investments in clean energy and in any technologies which would reduce dependence on imported energy.

These include investment in clean coal technologies as well as hydrogen and other alternative fuel technologies and opportunities in energy efficiency technology, which would include windows and building equipment.

He also sees the US eventually reconsidering moratoria placed on federal and offshore areas.

?Our growing concern about a dependence on foreign energy is certainly going to cause us to think again about whether we can keep so much energy off limits,? he said. ?Back when the oil embargo took place against the US in 1973, we imported 35 percent of the oil that we use. Today we import 55 percent. By 2025, it will be almost 70 percent.

?I have a hard time believing American public or political leaders are going to want to get to that stage as a practical national security matter,? he said, adding that by opening up areas currently off bounds there will be new opportunities for energy development that have not really been on the table for a long time.

While he expects more energy legislation in the future, he told delegates that a recently passed energy bill would help to pave the way for nuclear power as it included risk insurance and some subsidies in the form of production tax breaks.

?That will address concerns that financial markets have had about funding nuclear projects against the backdrop of political opposition,? he said.

The legislation repealed the Public Utility Holding Company Act and would stimulate investment in the power sector more generally as it would open the marketplace to a lot of new participants, he said.

?You will see a lot of merger and acquisition opportunities in the electricity power transmissions sectors, you?ll see a lot of assets in a position to suddenly change hands and you will see consolidation as well.

?The legislation will also help in the transmission area by opening up some of the bottlenecks, which have existed and thwarted efforts to try to address the age and insufficiency of our transmission system,? he said, adding that it may also pave the way for the liquefied natural gas world and end speculation and uncertainty about the Alaskan gas pipeline.

?Passage of the bill ends a lot of speculation and uncertainty and should finally bring about investment in that pipeline,? he said.

Start-ups, which are mostly focused on energy efficiency or emission areas, are also beginning to emerge as the world of technology recognises the opportunity.

Mr. Abraham said that there might be opportunities with emerging companies whether for venture capital purposes or more traditional types of investment.

He said: ?We will see a great deal of activity in that sector. The energy technology companies will enjoy if not an identical experience to the information technology companies, a version of that in the next ten years as a consequence of the challenges facing the sector and the need for creative solutions beyond producing from existing sources because they are not going to be sufficient.?