ExxonMobil has released the 2013 Outlook for Energy report on the company’s long-term view of the world’s energy future.
The Outlook for Energy is a study of the long-term trends in energy demand, supply, emissions and technology. The report which is updated annual, is built upon detailed analysis of data from about 100 countries, incorporating publicly available information as well as in-house expertise.
The report points out that global energy demand will be about 30% higher in 2040 compared to 2010 as economic output more than doubles, and prosperity expands while the global population increases. Electricity generation will account for more than 40% of global energy consumption while demand for coal will peak and begin to gradually decline.
Oil, gas and coal will constitute approximately 80% of the total energy mix in 2040, with natural gas growing fast enough to overtake coal. Demand for natural gas will rise to above 60% by 2040. The supply of natural gas and oil will become increasingly dependent on unconventional sources, such as those produced from shale formations, says the report.
According to the report, gains in energy-efficient practices and technologies such as hybrid vehicles will help to temper demand growth and curb emissions. Global energy-related CO2 emissions will grow slowly then level off by around 2030, partly due to the shift from coal to less carbon-intensive fuels such as natural gas, particularly in the United States and Europe. Emissions will decline through 2040.
ExxonMobil uses the Outlook for Energy to guide its long term investment decisions. The company invested over $10 billion to expand its refining and petrochemical production in Singapore because of the expected economic growth across the Asia Pacific region. The company also decided to invest with Qatar Petroleum to develop their natural gas reserves because of its view that global demand for gas would rise significantly.
ExxonMobil is also making significant investments in oil sands, deepwater and Arctic production, and the oil and natural gas supplies found in shale and rock formations.
