Natural gas gaining ground as largest global energy source

By Pratap John
Chief Business Reporter

Natural gas is set to become the second largest global energy source by 2030, accounting for about 25% of world energy, ExxonMobil said in a report.

In its outlook on energy titled ‘A view to 2030’ ExxonMobil said oil would remain the largest source of energy supply at about 35%.

Natural gas will grow the fastest of the fossil fuels and overtake coal as the second largest energy source, it said.

Currently, oil, gas and coal provide about 80% of world energy. The world’s energy mix is highly diverse.

Nuclear power will increase significantly, surpassing coal in terms of absolute growth and becoming the fourth largest fuel source. Hydro and geothermal will also grow, but they are limited by the availability of natural sites.

“We expect wind, solar and biofuel to increase at about 9% a year on average the highest growth rate of all fuels,” ExxonMobil said.

In developing the outlook, ExxonMobil said it anticipates significant efficiency improvements over time.

Compared to 2005 energy intensity levels these improvements translate to energy savings of approximately 170mn oil-equivalent barrels per day by 2030, about double the corresponding growth in demand.

“Achieving these gains will be critical to helping meet global energy challenges,” ExxonMobil said.

Alternative sources of energy are evolving. Factors such as technology, costs and availability will continue to shape the composition of the worlds’ energy supplies over time.

Given the tremendous scale of the energy market place, major shifts in the types of energy used around the world require ongoing advances in technology and substantial investments over decades.

To help ensure reliable and affordable supplies to meet growing needs, all economically viable sources of energy should be pursued, ExxonMobil said.

For example, unconventional oil and natural gas resources are expected to contribute more significantly to global supplies over time.

“Technology is more important than ever, since a significant portion of the world’s oil and gas resources are located in challenging environments that require innovative approaches to energy production.

Advances in technology are also spurring development of a global market for LNG, which is expected to more than triple in volume between 2005 and 2030.

Today, the world uses about 245mn barrels of oil-equivalent energy a day to fuel transportation, run farms and factories, power schools and businesses, heat and cool homes and enable improved living standards, the report said.

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