Texas-based energy giant ExxonMobil said in a report on Monday (Jan 25) that natural gas and LNG are expected to meet about 40 percent of the growth in global energy needs and demand for the fuel will increase by 50 percent.
Image: Maran Gas
“In 2040, oil and natural gas are expected to make up nearly 60 percent of global supplies, while nuclear and renewables will be approaching 25 percent. Oil will provide one third of the world’s energy in 2040, remaining the No. 1 source of fuel, and natural gas will move into second place,” ExxonMobil said in the 2016 edition of “The Outlook for Energy”.
At the same time, energy efficiency gains and increased use of renewable energy sources and lower carbon fuels, such as natural gas, are expected to help reduce by half the carbon intensity of the global economy, according to the report.
Global trade, LNG expanding
According to the report, inter-regional trading will play a key role in meeting natural gas demand through 2040, particularly in the Asia Pacific region where demand is rising fastest.
“Nearly half the growth in global gas demand through 2040 is expected to be met through inter-regional trade, most of it using LNG.”
LNG exports are expected to almost triple by 2040, reaching nearly 100 BCFD, the report said. Most of this LNG will be headed to Asia Pacific.
By 2040, almost half of Asia Pacific’s gas demand is likely to be satisfied by LNG, up from 35 percent in 2014.
Global energy demand and population growth
Global energy demand will increase 25 percent between 2014 and 2040, driven by population growth and economic expansion, the report said.
During the period, the world’s population will increase by about 2 billion people and emerging economies will continue to expand significantly. Most growth in energy demand will occur in developing nations that are not part of the Organization for Economic Co-operation and Development (OECD).
Carbon dioxide emissions
The outlook projects that global energy-related carbon dioxide emissions will peak around 2030 and then start to decline. Emissions in OECD nations are projected to fall by about 20 percent from 2014 to 2040.