Our new defence report – explains how and why this market will enjoy continued growth

Our new defence report – Military Energy, Fuels and Power Sources Market 2009-2019 – assesses the evolving opportunities presented by one of the defence industry’s growing markets. Our market study examines the leading military consumers of energy, fuels and power sources and assesses the range of factors that are driving global sales growth.

Our analysis has concluded that worldwide spending on military energy, fuels and power sources in 2008 totalled $34.5bn. We analyse the combination of factors that are resulting in increasing spending on energy by armed forces around the world and examine the most promising areas of research into alternative energy sources which are likely to come to fruition over our forecast period.

We examine the commercial prospects for companies involved in supplying fuels and power sources in the military energy marketplace. This analytical report defines the current state of the military energy, fuels and power sources market and discusses its potential for growth from 2009 onwards, with market forecasting carried out at both global and national levels.

How much do individual countries plan to spend on mobilising their armed forces between 2009 and 2019? Where are the growth opportunities over the next decade? To what extent are emerging alternatives in the energy sector likely to affect fuel consumption in the future? How does volatility in the oil market affect military consumers of energy? These critical questions and many more can be answered by reading our in-depth research as it is presented in this report.

A comprehensive analysis of the military energy, fuels and power sources market:

Military Energy, Fuels and Power Sources Market 2009-2019 examines the global market for fuels and power sources from an impartial standpoint. We offer a review of significant energy contracting activity based on our analysis of information obtained from multiple sources. The report draws on a combination of official corporate and governmental announcements, media reports, policy documents, industry statements and expert opinion.

Military Energy, Fuels and Power Sources Market 2009-2019 provides detailed sales forecasts for the global market and leading national markets; a SWOT analysis; discussions of commercial and technological trends; and assessments of commercial drivers and restraints. This report also includes five in-depth original interviews with industry experts. This package of analyses cannot be obtained anywhere else.

Why you should buy Military Energy, Fuels and Power Sources Market 2009-2019:

The main benefits you can derive from purchasing this report are:

- You will come to understand the current state of the global military energy, fuels and power sources market and form a clear outlook of how it is set to develop, based on our market forecasts for 2009 to 2019.

• You will be able to examine our detailed global sales forecasts – as well as national sales forecasts for the leading national markets.

• You will gain an insight into the market’s potential for further growth by examining the major commercial drivers and restraints.

• You will learn how the world’s armed forces are examining the viability of alternative fuels with a view to meeting their future energy needs.

• You will find out how the leading players in the military energy, fuels and power sources market are positioned in the global marketplace.

• You will be able to appreciate the range of factors affecting market growth with our analysis of strengths, weaknesses, opportunities and threats.

• You will learn what five leading experts think the future holds by reading original interviews that discuss a wide range of topics, including: biofuels; fuel cells; oil prices; power sources; synthetic fuels; and the outlook for the US military’s energy strategy.

The world’s armed forces operate and continue to acquire weapon systems that were designed to run on fuels derived from relatively cheap oil. But as the oil price spike of 2008 illustrated, potential petroleum market volatility has to be factored into defence ministries’ budgets. Military capabilities could be severely constrained if higher fuel costs forced a reduction in the use of critical assets.

In the long term, as global demand for oil rises and supply dwindles, governments may be forced to adapt their military strategies to cope with the changing energy landscape. Energy Independence is increasingly becoming a factor in national security. As energy supplies become increasingly scarce, imbalances in access to resources could potentially even push competing nations into military confrontations.

You must order this report today. Anyone with an interest in energy, fuels and power sources procurement in the defence sector cannot afford to miss out on acquiring the information and insight that only this new report can provide.

Gain an understanding of how to tap into the potential of this exciting market by ordering Military Energy, Fuels and Power Sources Market 2009-2019.

1. Executive Summary

2. Emerging Alternatives in the Military Energy, Fuels and Power Sources Market

2.1 Conventional Fuels

2.1.1 Jet Propellant-8

2.1.2 Jet Propellant-5

2.1.3 Other Petroleum Fuels

2.2 Emerging Alternatives

2.2.1 Synthetic Fuels

2.2.2 Biofuels

2.2.3 DARPA Research

2.3 Power Sources

2.4 The Benefits of This Report

2.5 Methods

3. The Global Military Energy, Fuels and Power Sources Market

3.1 World Military Energy, Fuels and Power Sources Market

3.2 US Share of the Military Energy, Fuels and Power Sources Market

3.3 Oil Prices

3.4 Global Military Fuel Consumption

3.4.1 US Military Fuel Consumption

3.4.2 Non-US Military Fuel Consumption

3.4.3 US vs. Non-US Military Fuel Consumption

4. Leading National Military Energy, Fuels and Power Sources Markets

4.1 US Military Energy, Fuels and Power Sources Market

4.1.1 Defense Energy Support Center

4.1.2 Volatile Oil Prices

4.1.3 Energy Requirements

4.1.4 Energy Investment

4.1.5 US Operations in Iraq

4.1.6 Fuel Losses

4.1.7 Fuel Transportation

4.1.8 Energy Inventory

4.2 Chinese Military Energy, Fuels and Power Sources Market

4.3 UK Military Energy, Fuels and Power Sources Market

4.3.1 Defence Fuels Group

4.3.2 Fuel Consumption

4.3.3 Reducing Reliance on Fossil Fuels

4.4 Japanese Military Energy, Fuels and Power Sources Market

4.4.1 Cancelled Training Exercises

4.5 French Military Energy, Fuels and Power Sources Market

4.6 German Military Energy, Fuels and Power Sources Market

4.6.1 Fuel Cells

4.7 Australian Military Energy, Fuels and Power Sources Market

4.7.1 Operational Fuel Consumption

4.7.2 Defence Materiel Organisation Contracts

4.8 Rest of the World Military Energy, Fuels and Power Sources Market

5. SWOT Analysis of the Military Energy, Fuels and Power Sources Market

5.1 Strengths

5.1.1 Global Energy Demand Remains Strong

5.1.2 Prices Continue Rising

5.1.3 Defence Energy Needs Come First

5.1.4 Medium-Term Oil Dependence

5.2 Weaknesses

5.2.1 Greater Efficiency Could Reduce Demand

5.2.2 Price Volatility Generates Uncertainty

5.2.3 Failure to Consider the Full Cost of Fuel

5.2.4 Environmental Considerations

5.2.5 Budgetary Constraints

5.3 Opportunities

5.3.1 Synthetic Fuels Certification

5.3.2 Biofuels Research

5.3.3 Fuel Cell Development

5.4 Threats

5.4.1 Overseas Oil Procurement

5.4.2 Supply Line Vulnerability

5.4.3 Global Economic Outlook Remains Uncertain

5.4.4 Reduction in Combat Effectiveness

6. Expert Opinion

6.1 Defense Advanced Research Projects Agency (DARPA)

6.1.1 Filling the Alternative Fuels Technology Gap

6.1.2 Embracing Diversity

6.1.3 Supporting US Military Strategy

6.1.4 Driving Down Biofuel Prices

6.1.5 Future Renewable Replacements

6.2 Powerstax: Tim Worley, Chief Executive Officer

6.2.1 Packing Power into Portable Products

6.2.2 Building Recognition in the Defence Industry

6.2.3 Racing from Concept to Prototype

6.2.4 COTS Power Sources Enter the Military Market

6.3 SFC Smart Fuel Cell AG: Dr Peter Podesser, Chief Executive Officer

6.3.1 Lightweight Fuel Cells

6.3.2 Demand for Reliable Power Sources

6.3.3 Products Tailored for NATO Customers

6.3.4 Significant Potential for Increased Sales

6.4 Rentech Inc: Julie Dawoodjee, Vice-President of Investor Relations and Communications

6.4.1 Seeking Alternative Fuels

6.4.2 Securing Domestic Energy Sources

6.4.3 Support for US Military Testing

6.4.4 US Air Force Leads Synthetic Fuels Adoption

6.4.5 US DoD Could Ignite Commercial Synthetic Fuels Industry

6.5 Syntroleum Corporation: Jeff Bigger, Senior Vice-President of Business Development

6.5.1 Fischer-Tropsch Process

6.5.2 Meeting US Air Force Requirements

6.5.3 Hydro-Treated Fuels Production

6.5.4 Benefiting From Higher Oil Prices

6.5.5 Seeking Long-Term Synthetic Fuel Orders

6.5.6 Financing Depends on Purchase Agreements

6.5.7 Eyeing Commercial-Scale Military Contracts

7. Leading Military Energy, Fuels and Power Sources Companies

7.1 Leading Petroleum Suppliers to US DESC

7.2 Profiles of Military Energy, Fuels and Power Sources Companies

7.2.1 Abu Dhabi National Oil Company

7.2.2 Adaptive Materials Inc

7.2.3 Bahrain Petroleum Company

7.2.4 BP

7.2.5 Exxon Mobil Corporation

7.2.6 International Oil Trading Company

7.2.7 Kuwait Petroleum Corporation

7.2.8 MIL Power Ltd

7.2.9 Motor Oil (Hellas) Corinth Refineries

7.2.10 Powerstax

7.2.11 Rentech Inc

7.2.12 Sasol

7.2.13 SFC Smart Fuel Cell AG

7.2.14 Shell

7.2.15 SK Energy

7.2.16 Solazyme Inc

7.2.17 Sustainable Oils LLC

7.2.18 Syntroleum Corporation

7.2.19 UOP LLC

7.2.20 Valero Marketing and Supply Company

8. Conclusions

8.1 Global Demand for Military Energy, Fuels and Power Sources

8.2 Drivers of Growth in the Military Energy, Fuels and Power Sources Market

8.3 Restraints on Growth in the Military Energy, Fuels and Power Sources Market

8.4 Outlook for the Military Energy, Fuels and Power Sources Market

8.5 Alternative Fuels and Energy Independence

9. Glossary

List of Tables and Figures

Table 3.1 World Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Table 3.2 World Military Energy, Fuels and Power Sources Sales CAGR, 2009-2019

Table 3.3 National Military Energy, Fuels and Power Sources Sales Forecasts, 2009-2019

Table 3.4 National Military Energy, Fuels and Power Sources Market Share, 2008 vs. 2019

Table 3.5 US vs. Non-US Military Energy, Fuels and Power Sources Sales Forecasts, 2009-2019

Table 3.6 US vs. Non-US Military Energy, Fuels and Power Sources Sales CAGR, 2009-2019

Table 3.7 NYMEX Oil Prices, 2003-2009

Table 3.8 Forecast Oil Prices, 2006-2019

Table 3.9 World Military Fuel Consumption Forecast, 2009-2019

Table 3.10 World Military Fuel Consumption CAGR, 2009-2019

Table 3.11 US Military Fuel Consumption Forecast, 2009-2019

Table 3.12 US Military Fuel Consumption CAGR, 2009-2019

Table 3.13 Non-US Military Fuel Consumption Forecast, 2009-2019

Table 3.14 Non-US Military Fuel Consumption CAGR, 2009-2019

Table 4.1 US Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Table 4.2 US Military Energy, Fuels and Power Sources Sales CAGR, 2009-2019

Table 4.3 US DESC Petroleum Net Sales by Product, FY05-FY08

Table 4.4 US DESC Aerospace Energy, Natural Gas and Petroleum Net Sales, FY04-FY10

Table 4.5 US DoD Composite Standard Petroleum Price, FY08-FY10

Table 4.6 US DoD Fuel Consumption by Service, FY08-FY10

Table 4.7 US DoD Aerospace Energy, Natural Gas and Petroleum Purchases, FY04-FY10

Table 4.8 US DoD Fuel Purchases vs. Total and O&M Budgets, FY04-FY07

Table 4.9 US Combat Fuel Losses OCO Requests, FY08-FY10

Table 4.10 US Fuel Transportation and Terminal Operations OCO Requests, FY08-FY10

Table 4.11 US DESC Worldwide Bulk Transportation, FY06-FY08

Table 4.12 US DESC Worldwide Petroleum Transportation Cost, FY04 to FY08

Table 4.13 US DESC Worldwide Bulk Fuel Inventory, FY08

Table 4.14 Chinese Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Table 4.15 Chinese Military Energy, Fuels and Power Sources Sales CAGR, 2009-2019

Table 4.16 UK Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Table 4.17 UK Military Energy, Fuels and Power Sources Sales CAGR, 2009-2019

Table 4.18 UK MoD Fuel Expenditure, 2003/04-2008/09

Table 4.19 UK MoD Fuel Consumption, 2005/06-2007/08

Table 4.20 Japanese Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Table 4.21 Japanese Military Energy, Fuels and Power Sources Sales CAGR, 2009-2019

Table 4.22 French Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Table 4.23 French Military Energy, Fuels and Power Sources Sales CAGR, 2009-2019

Table 4.24 German Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Table 4.25 German Military Energy, Fuels and Power Sources Sales CAGR, 2009-2019

Table 4.26 Australian Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Table 4.27 Australian Military Energy, Fuels and Power Sources Sales CAGR, 2009-2019

Table 4.28 Australian Operational Fuel Consumption, 2002/03-2007/08

Table 4.29 RoW Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Table 4.30 RoW Military Energy, Fuels and Power Sources Sales CAGR, 2009-2019

Table 5.1 SWOT Analysis of the Military Energy, Fuels and Power Sources Market, 2009-2019

Table 7.1 Leading Petroleum Suppliers to US DESC, FY08

Table 7.2 Leading Petroleum Suppliers to US DESC, FY07

Table 7.3 Leading Petroleum Suppliers to US DESC, FY06

Figure 3.1 World Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Figure 3.2 National Military Energy, Fuels and Power Sources Market Share, 2008

Figure 3.3 National Military Energy, Fuels and Power Sources Market Share, 2019

Figure 3.4 US vs. Non-US Military Energy, Fuels and Power Sources Sales Forecasts, 2009-2019

Figure 3.5 US vs. Non-US Military Energy, Fuels and Power Sources Market Share, 2008 vs. 2019

Figure 3.6 NYMEX Oil Prices, 2003-2009

Figure 3.7 Forecast Oil Prices, 2006-2019

Figure 3.8 World Military Fuel Consumption Forecast, 2009-2019

Figure 3.9 US Military Fuel Consumption Forecast, 2009-2019

Figure 3.10 Non-US Military Fuel Consumption Forecast, 2009-2019

Figure 3.11 US vs. Non-US Military Fuel Consumption Forecast, 2009-2019

Figure 4.1 US Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Figure 4.2 US DESC Petroleum Net Sales by Product, FY05-FY08

Figure 4.3 US DESC Aerospace Energy, Natural Gas and Petroleum Net Sales, FY04-FY10

Figure 4.4 US DoD Composite Standard Petroleum Price, FY08-FY10

Figure 4.5 US DoD Fuel Consumption by Service, FY08-FY10

Figure 4.6 US DoD Aerospace Energy, Natural Gas and Petroleum Purchases, FY04-FY10

Figure 4.7 US DoD Fuel Purchases vs. Total and O&M Budgets, FY04-FY07

Figure 4.8 US Combat Fuel Losses OCO Requests, FY08-FY10

Figure 4.9 US Fuel Transportation and Terminal Operations OCO Requests, FY08-FY10

Figure 4.10 US DESC Worldwide Bulk Transportation, FY06-FY08

Figure 4.11 US DESC Worldwide Petroleum Transportation Cost, FY04 to FY08

Figure 4.12 US DESC Worldwide Bulk Fuel Inventory, FY08

Figure 4.13 Chinese Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Figure 4.14 UK Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Figure 4.15 UK MoD Fuel Expenditure, 2003/04-2008/09

Figure 4.16 UK MoD Fuel Consumption, 2005/06-2007/08

Figure 4.17 Japanese Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Figure 4.18 French Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Figure 4.19 German Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Figure 4.20 Australian Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Figure 4.21 Australian Operational Fuel Consumption, 2002/03-2007/08

Figure 4.22 RoW Military Energy, Fuels and Power Sources Sales Forecast, 2009-2019

Figure 7.1 Leading Petroleum Suppliers to US DESC, FY08

Figure 7.2 Leading Petroleum Suppliers to US DESC, FY07

Figure 7.3 Leading Petroleum Suppliers to US DESC, FY06

Companies Mentioned in This Report

Abu Dhabi National Oil Company (ADNOC)

Adaptive Materials Inc

Air BP

BAE Systems

Bahrain Petroleum Company (BAPCO)

Behlman

Bell Bio-Energy Inc

Blue Sun Biodiesel

Boodai Corporation

BP

BP Australia Ltd

BP International Ltd

Caltex Australia Ltd

Cargill

Capitol Connections

Chevron Al Khalij

DCC Energy Ltd

DuPont

Dynamic Fuels

Emo Oil Ltd

Esso Petroleum Company Ltd

Exxon Mobil Corporation

GB Oils Ltd

GE Global Research

General Atomics

Golteks Trading & Transport Company

Green Earth Fuels LLC

GS Caltex Corporation

Hawaii BioEnergy

Honeywell

Honeywell International Inc

iRobot Corporation

Integrated Concepts & Research Corporation (ICRC)

International Oil Trading Company (IOTC)

Jassim Transport and Stevedoring Company

Kuwait Petroleum Corporation

Lignol Energy Corporation

Logos Technologies

MIL Power Ltd

Mina Corporation Ltd

Mobil Oil Australia Pty Ltd

Motor Oil (Hellas) Corinth Refineries

Pace Fuelcare Ltd

Petrol Ofisi

Powerstax

Prax Petroleum Ltd

QinetiQ

Red Star Enterprises Ltd

Refinery Associates of Texas Inc

Rentech Inc

Sasol

Sasol Synfuels International

Science Applications International Corporation (SAIC)

Scottish Fuels

SFC Smart Fuel Cell AG (SFC)

Shell

Shell Aviation Ltd

Shell Company of Australia Ltd

Shell Marine Products Ltd

SK Corporation

SK Energy

Solazyme Inc

Sustainable Oils LLC

Swedish Biofuels

Syntroleum Corporation

Targeted Growth Inc

Tefirom

Total UK Ltd

Tyson Foods Inc

UOP LLC

Valero Marketing and Supply Company

Valpro Ltd

VSE Corporation

Watson Petroleum Ltd

Government Agencies and Organisations Mentioned in This Report

American Society for Testing and Materials (ASTM)

Arizona State University

Australian Army

Australian Defence Force (ADF)

Australian Defence Materiel Organisation (DMO)

Australian Department of Defence (DoD)

British Army

Federal Aviation Administration (FAA)

Finnish Defence Forces

French Air Force

French Army

French Gendarmerie Nationale

French Military Fuel Service (Service des essences des armées; SEA)

French Navy

German Bundeswehr

Japan Air Self-Defense Force

Japan Maritime Self-Defense Force

Japan Ministry of Defense (MoD)

Japan Self-Defense Forces

NATO

New York Mercantile Exchange (NYMEX)

Norwegian Defence Research Establishment (FFI)

Royal Australian Air Force (RAAF)

Royal Australian Navy (RAN)

Scripps Institution of Oceanography

Swedish Defence Materiel Administration (FMV)

Texas A&M AgriLife

UK Defence Equipment and Support (DE&S)

UK Defence Fuels Group (DFG)

UK Defence Storage and Distribution Agency (DSDA)

UK Ministry of Defence (MoD)

UK Ministry of Defence (MoD) Centre for Defence Enterprise (CDE)

UK Royal Air Force (RAF)

UK Royal Navy (RN)

University of North Dakota Energy & Environment Research Center

US Air Force (USAF)

US Army

US Army Tank-automotive and Armaments Command (TACOM)

US Central Command (CENTCOM)

US Congressional Research Service

US Defense Advanced Research Projects Agency (DARPA)

US Defense Energy Support Center (DESC)

US Defense Energy Support Center (DESC)-Europe

US Defense Logistics Agency (DLA)

US Department of Defense (DoD)

US Department of Energy (DoE)

US Energy Information Administration

US Naval Air Systems Command (NAVAIR)

US Navy (USN)

US Office of Management and Budget (OMB)