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Demand For Oil And Gas Continues To Rise

Demand For Oil And Gas Continues To Rise

Monday 19th March 2018
Ravid

Environmentalists have been raising concerns about the oil and gas industry for some time, but this has not dampened demand for the sector, with consumption levels still high.

Raconteur.net has reported there is continued optimism for the market, due to a rise in energy demand across the world and a growing global population.

International Energy Agency (IEA) chief economist Laszlo Varro said: "When you tell a story about the future, unavoidably you make assumptions. Over the longer term, political and technological questions multiple."

As a result, the IEA anticipates a peak in oil demand in the 2020s, with overall energy requirement set to grow by 30 per cent before 2040. This is due to the global economy increasing at a rate of 3.4 per cent.

There will be a rise in renewables over the next few decades, it was noted, as well as a growth in the electrification of transportation systems and improved efficiency in machinery, including cars. This means need for oil, as a form of energy, will not be as strong.

Therefore, chief economist at KBC Stephen George expects there will be a plateau in oil demand at 2040. He told the news provider 110 or 111 million barrels will continue to be produced then, instead of reaching a peak then suffering a decline.

Electrification will not have an overwhelming impact on the sector, Mr George adds, due to infrastructure problems in poorer countries and "cultural issues to overcome" in the USA.

Indeed, JBC Energy GmbH recently forecasted that Britain's crude oil output will soon exceed one million barrels a day, making the UK a net crude oil exporter for the first time in 14 years, Bloomberg reported.

However, if demand of oil does wane Mr George stated: "Petrochemicals will grow as fast as oil demand for power drops."

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