Global energy demand continues to grow but that growth is slowing and mainly driven by emerging economies - led by China and India - according to the BP Energy Outlook 2035, which is published today.
This is the fourth annual edition of the Outlook, and for the first time it sets out BP’s view of the most likely developments in global energy markets further beyond 2030 to 2035, based on up-to-date analysis.
The Outlook reveals that global energy consumption is expected to rise by 41 per cent from 2012 to 2035 – compared to 55 per cent over the last 23 years (52 per cent over the last twenty) and 30% over the last ten. Ninety five per cent of that growth in demand is expected to come from the emerging economies, while energy use in the advanced economies of North America, Europe and Asia as a group is expected to grow only very slowly – and begin to decline in the later years of the forecast period.
Shares of the major fossil fuels are converging with oil, natural gas and coal each expected to make up around 27% of the total mix by 2035 and the remaining share coming from nuclear, hydroelectricity and renewables. Among fossil fuels, gas is growing fastest, increasingly being used as a cleaner alternative to coal for power generation as well as in other sectors.
Bob Dudley, BP Group Chief Executive said that the Outlook “highlights the power of competition and market forces in unlocking technology and innovation to meet the world’s energy needs. These factors make us optimistic for the world’s energy future.”
Dudley added: “The Outlook leads us to three big questions: Is there enough energy to meet growing demand? Can we meet demand reliably? And what are the consequences of meeting demand? In other words, is the supply sufficient, secure and sustainable?”
“On the first question, our answer is a resounding ‘yes’.The growth rate for global demand is slower than what we have seen in previous decades, largely as a result of increasing energy efficiency. Trends in global technology, investment and policy leave us confident that production will be able to keep pace. New energy forms such as shale gas, tight oil, and renewables will account for a significant share of the growth in global supply.”