Natural Gas a Fuel of the Future?

Natural gas will be a “fuel of the future”, according to the latest edition of Statoil’s Energy Perspectives report – the firm’s annual outlook for global economic and energy markets.

Energy Perspectives 2012, released Thursday, estimates that global energy demand is set to increase by more than 40 percent between now and 2040. And it suggests that energy demand for fossil fuels will account for the majority of the increase, although nuclear and renewable energy is expected to grow at a faster rate.
 
“Our assessment suggests that global growth will continue at an average of 2.8 percent per year over the coming three decades. This is close to the average of the previous 30 years, even though we expect a gradual slowdown in growth towards 2040,” said Statoil chief economist Klaus Mohn in a statement.
 
While global oil demand is expected to reach a plateau by 2030, a key prediction of the report is that natural gas will take over and become a “fuel of the future”.
 
“Global gas demand is projected to increase by 60 percent by 2040. Positive drivers include significant new available supply at moderate costs and environmental policies,” said Statoil’s chief analyst Eirik Wærness.
 
Statoil expects that natural gas will serve as an important and cost-efficient means to meet the challenge of global warming due to it being the cleanest fossil fuel.
 
This positive view of natural gas growth echoes BP’s findings in its own Statistical Review of World Energy, 2012, which was published on June 13.
 
Commenting on BP’s Statistical Review last week, BP chief economist Christof Rühl said: “Natural gas has produced some of the biggest changes in global energy markets over the last few years. There is, first, the rapid increase in trade, especially of LNG, that has connected hitherto segmented regions in an increasingly flexible manner. And second, the development of unconventional resources in the US, which has everyone wondering where gas may next turn into a relatively abundant resource.”
 
However Statoil’s report estimates that, in aggregate, the fossil fuel share of the global energy mix to drop from 81 percent in 2010 to 73 percent by 2040.

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Comments

  1. Mahmud says:

    thank you your blogg,

    however would like to know if 200 bcf of gas reserve can be produced and utilised as power generation to local use?
    Somalia has 200 billion cubic feet of proved natural gas reserve near to the capital of the country Mogadishu which have 2 million populations approximately. The city lacks electricity from power generation except small private generators. It lacks also infrastructure and clean water and lighting streets. However, the initiated idea here is to produce the discovered natural gas near the city and utilise it to fire a power plant which can then supply electricity to the city. Therefore, I am looking partnership that can support me technical, financial and knowledge. The need is there and we can realise this opportunity for commercialise purpose and can create many employments for this poor country. At same time It can also be created other related projects such producing feeding stocks to the agricultural land near the gas reserve.

    Could you give your general idea if this initiative can be realistic? I know the gas was discovered and I know power generation to Mogadishu is vital. Could 200 bcf be extracted as an commercial manner while we know the CAPEX is already done in 1980s. The remaining is to bring it out and process and to convert to electricity for 2 million populations. Please give me your idea the feasibility of this project. If it can be actualised then we may work together and develop further this initiative.

    For further info please send me on email to xamuud@gmail.com