Oil and natural gas demand on the rise

GLOBAL energy demand will rise by about 30 per cent in the next three decades, according to ExxonMobil’s 2012 edition of The Outlook for Energy: A View to 2040. In its latest long-term report on the world’s energy future, the oil giant stated that this higher energy demand was partly due to a global population growth of more than 25 per cent, and partly due to economic growth and improved living standards in non-Organisation for Economic Cooperation and Development (OECD) countries.
By 2040, the number of households in the world was expected to increase by almost 50 per cent to 2.8 billion, with growth being particularly strong in Africa, China, India and Latin America. The report stated that the 30 per cent growth in energy use could have been more than four times higher than that amount if it were not for expected gains in energy efficiency across the world’s economies, as a result of ongoing improvements in technologies and the implementation of energy management policies. “The power of efficiency can be seen most clearly in the more mature economies of the OECD where energy demand will remain essentially flat through 2040, even as GDP [Gross Domestic Product] nearly doubles,” ExxonMobil stated in the report.Meanwhile, non-OECD energy demand was projected to rise by nearly 60 per cent. ExxonMobil believed that oil and
natural gas would account for 60 per cent of this global demand by 2040, compared to 55 per cent today, and it added that gas would be the fastest-growing major fuel source during this period.
With oil remaining the world’s top energy source, natural gas was expected to rise to become the second most widelyused source. The report stated that this would be partially due to coal’s gradual decline in demand from about 2025, as emerging policies seek to curb emissions and encourage lesser carbon-intensive fuels. In this respect, strong growth was also projected for renewable energy such as wind, solar and biofuels. The report stated that energy supplies would evolve over time, primarily due to advancements in technology, but also because of government policies and consumer preferences. Illustrating the power of new technologies, ExxonMobil stated that global deepwater production was anticipated to more than double by 2040.
“Deepwater production was in its infancy just 10 years ago; by 2025, it will provide 10 per cent of global liquid fuels supplies,” the company stated. ExxonMobil also predicted strong growth in production from oil sands in Canada and Venezuela.
“By 2040, oil sands will account for 25 per cent of total liquids supply in North and South America.”
The report also projected significant growth for tight oil and natural gas liquids through 2040. “Each of these fuels is benefitting from new application of established techniques that have enabled the extraction of oil and gas from shale and other challenging rock formations. These technologies already have delivered tremendous production growth in the United States and are beginning to be applied globally,” ExxonMobil stated. Meanwhile, the company has predicted a shift in residential and commercial demand toward electricity, as consumers are being driven away from fuels such as LPG, kerosene and distillate, for heating and cooking needs.
Global demand for fuel for personal vehicles was expected to soon peak and then begin to decline, despite the global fleet nearly doubling to 1.6 billion vehicles. “Largely because of tightening government standards, ExxonMobil expects that by 2040, hybrids and other advanced vehicles will account for nearly 50 per cent of all light duty vehicles on the road, compared to only about 1 per cent today,” the report stated.

By Danica Newnham

3 Responses to Oil and natural gas demand on the rise

  1. Daisy

    April 25, 2012 at 2:51 pm

    wow, what an excellent presentation! going to follow your site now. thanks so much.http://www.batepao.net

  2. Cassiana

    May 11, 2012 at 3:37 pm

    i think it was a great website because it is really interesting. http://www.kitsucesso.com

  3. mark donaldson

    June 13, 2012 at 6:28 am

    nice work danica

Leave a Reply

Your email address will not be published.

* Copy This Password *

* Type Or Paste Password Here *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>