According to Exxon, America’s largest energy company, oil will remain the world’s largest energy source by 2040 accounting for 32% of global demand vs. 34% in 2010. This is after taking into account gains in efficiency and hybrid cars making up 50% of the total personal vehicle fleet!
Exxon also predicts a major shift from coal to natural gas which will be the faster-growing major fuel with demand expected to increase by 60% from 2010 to 2040. Growth will be fueled by strong growth in Non OECD countries in Asia where natural gas demand is expected to triple over the next 30 years.
No peak oil on the horizon according to Exxon which believes technology is unlocking previously inaccessible oil riches across the world. Of course, this means cheap oil won’t be coming back anytime soon as the cost of oil extraction will support strong oil prices.
The best part is the basis of the report: demand will be rising because in the next 30 years the world population will still be growing and global GDP is expected to double. Nice to know there’s no mention of Europe triggering an end to civilization scenario.
In the end, The Outlook for Energy report by Exxon is a set of predictions that may potentially be tainted by the nature of its operations. Time will tell…
Plenty of oil left but cheap oil gone
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Have a Great Weekend!