Growth may slow, but energy firms know where to go
Executives at BP may be mildly annoyed by the company’s own research, which has found growth in global energy demand could be on the way down.
No need to worry for the oil barons at the top of the pile though, the figures collated by BP show demand will still grow by more than 40% by 2035, compared to 52% growth in the past twenty years.
This growth will be upheld chiefly by the expanding economies of India and China, with North America, Europe and the rest of Asia slated to grow “very slowly” in coming decades. Towards the end of the forecast period, BP predicts the more advanced economies may even see a decline in energy demand.
The coal and oil fires will burn for the next twenty years at least. BP predicts traditional sources including oil gas and coal will still comprise more than two thirds of the global energy mix by 2035.
Technological advances mean that demand will always be met, but for many it is a matter of the price and means by which electricity is harvested and supplied.
BP chief executive Bob Dudley has conceded that traditional methods will not be around forever, but he is confident the company can hold out.
“The growth rate for global demand is slower than what we have seen in previous decades, largely as a result of increasing energy efficiency,” he said.
“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.”
Oil is expected to well and truly flood the market this year, with the OPEC cartel of oil-producers saying new agreements will soon bring output back to nearly 30 million barrels per day.