Gas sets to be World’s Primary Source of Energy by 2035 --- Report

Joshua Yousouph

Harboursandport.com: Lagos---DNV GL’s Energy Transition Outlook (ETO), has predicted that Oil and gas will be crucial components of the world’s energy future and will become the largest single source of energy from 2034.

The company also stated that while renewable energy will grow its share of the energy mix, oil and gas will account for 44% of world energy supply in 2050, compared to 53% today.

According to DNV GL’s ETO, 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 of which the company expects will occur in 2035.

Elisabeth Tørstad, the CEO of DNV GL – Oil & Gas, stated that the company have seen impressive and important innovative efforts across the energy industry, resulting in cost saving and efficiency gains. She suggested that the oil and gas industry must continue on a path of strict cost control to stay relevant.

She also noted that coming from a tradition of technological achievements, and having the advantage of existing infrastructure and value chains, DNV GL has the potential to continue to contribute to energy security and shape our energy future.

Tørstad also added that “increased digitalization, standardization and remote or autonomous operations will play a central role in achieving long-term cost savings and improving the oil and gas industry’s carbon footprint. The industry is also expected to turn to innovations in facility design, operating models and contracting strategies”.

DNV GL also noted that the 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.

The Company’s Energy Transition Outlook also said that Gas will continue to play a key role alongside renewables in helping to meet future, lower-carbon, energy requirements; and since major oil companies intend to increase the share of gas in their reserves, DNV GL expects an accelerated shift by 2022 as they decarbonize business portfolios.

Similarly, it was also predicted that global demand for energy will flatten in 2030, and then steadily decline over the next two decades. The fossil fuel share of the world’s primary energy mix will also reduce from 81% currently to 52% in 2050. While demand for hydrocarbons will peak over the next two decades, significant investment will be needed to add new oil and gas production capacity and operate existing assets safely and sustainably.

However, the results of DNV GL’s model reinforce the need to maintain strict cost efficiency in order to achieve the margins necessary for future capital and operational expenditure.