BP: Gas to become second largest fuel source by 2035
Natural gas, which is mainly used for generating electricity and heat, is believed to become the most important element of the energy mix in future.
BP’s recently unveiled 2017 Energy Outlook reads that oil, gas, and coal would remain the dominant sources of energy powering the world economy and accounting for more than three-quarters of total energy supplies in 2035 (down from 85 percent in 2015), while natural gas is expected to grow faster than other fuels.
“Out of these, gas is the fastest growing fuel (1.6 percent per year), with its share in primary energy increasing as it overtakes coal to be the second-largest fuel source by 2035,” said the report.
The rapid expansion in liquefied gas exports soon will create an integrated market anchored by U.S. pricing, according to the outlook.
Over the forecasted period, the main growth in gas demand is expected to come from China, the Middle East, and the United States, with LNG playing a dynamic role.
"In China, growth in gas consumption outstrips domestic production, so that by 2035 imported gas comprises nearly 40% of total consumption, up from 30% in 2015. In Europe, the share of imports rises from around 50% in 2015 to over 80 percent by 2035". LNG supplies are expected to account for more than half of traded gas by 2035.
BP’s analysis suggests oil demand growth to slow and supplies to remain abundant in the coming decades. The dominant oil market trends of the past few years - plentiful supply, competition for market share between the biggest producers and moderate demand growth, will prove to be long-term phenomena.
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