Gas to surpass oil as primary energy source worldwide

Gas to surpass oil as primary energy source worldwidePower generation is predicted to be the primary consumer of gas in most regions. ( Image source: Wyatt Wellman/ Flickr) As gas is seen to overtake oil as the world’s primary energy source in the mid-2030s, around 64 per cent of oil and gas sector leaders expect to increase or sustain spending on gas projects in 2018

According to a survey by DNV GL, about 86 per cent of the respondents agreed that gas will play an increasingly important role in the global energy mix over the next decade.

The findings appear in transition in motion, a special report from DNV GL’s research on the outlook for the oil and gas industry in 2018. It reveals that the primary driver for investment in natural gas and LNG projects this year is the global energy transition.

The pace of the oil and gas industry’s intentions to lower carbon emissions differs by region. However, about 33 per cent of survey respondents in North America said that their company is actively preparing for the shift to a lower carbon energy mix this year.

Liv Hovem, CEO of DNV GL- Oil & Gas, commented, “Society’s transition to a less carbon-intensive energy mix is already a reality, and oil and gas will continue to be crucial components. Our research affirms that the industry is already taking positive steps to secure the important role we forecast gas to play in helping to meet future, lower-carbon energy requirements.”

Power generation is predicted to be the primary consumer of gas in most regions, though manufacturing could demand similar volumes in emerging markets. Production is also forecast to double in China, the Indian Subcontinent and South East Asia.

“Significant investment will be needed in the gas industry over the coming decades to increase capacity, transform assets to source and transport a decarbonised mix of energies and to safely build and maintain the infrastructure needed to connect emerging supply regions with evolving demand centres,” Hovem added.

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