Oil and gas will be crucial components of the world’s energy future, according to DNV GL’s inaugural Energy Transition Outlook. However, renewable energy will grow its share of the energy mix, DNV GL’s independent model predicting the energy mix to 2050, shows that oil and gas will account for 44 percent of world energy supply in 2050, compared to 53 percent today.
DNV GL forecast shows humanity’s energy demand plateauing after 2030, thanks to step-changes in energy efficiency and gas becoming the world’s largest single source of energy by 2035. Demand for oil will peak in 2022, driven by expectations for a surge in prominence of light electric vehicles, accounting for 50% of new car sales globally by 2035.
However, the stage is set for gas to become the largest single source of energy towards 2050, and the last of the fossil fuels to experience peak demand, which DNV GL expects will occur in 2035.
Gas will continue to play a key role alongside renewables in helping to meet future, lower-carbon, energy requirements. Major oil companies intend to increase the share of gas in their reserves, and DNV GL expects an accelerated shift by 2022 as they decarbonise business portfolios.
“We have seen impressive and important innovative efforts across the energy industry, resulting in cost saving and efficiency gains. The oil and gas industry must continue on a path of strict cost control to stay relevant. Coming from a tradition of technological achievements, and having the advantage of existing infrastructure and value chains, this industry has the potential to continue to contribute to energy security and shape our energy future,” says Elisabeth Torstad, chief executive officer of DNV GL – Oil and Gas.
The company’s oil and gas report translates the energy requirements of key demand sectors into the trends “we expect to see across the value chain. We discuss how demand from existing and new production capacity will be met; we consider implications for LNG and pipelines, and we explore and the role digitalization and emerging technologies,” Torstad said, in a statement, he sent to Realnews Thursday, September 6.
