The global energy mix is set to ebb and flow. Demand and supply of oil and gas are set to change, but it is likely consumption will continue to rise for some time, despite environmental pressures.
The price of oil is back around $60 a barrel and natural gas is projected to provide 45 per cent of power generation by 2040. Rebounding market fundamentals, quests for production independence and protection of market share, as well as geopolitical tensions, continue to drive both optimism and skepticism within the industry. With renewable energy projected to account for the majority of new generation capacity to 2050, what does the future hold for oil and gas?
The current critical importance of oil and gas to the energy mix is undeniable, but as the markets continue to evolve, it’s important to understand what’s driving changes in both demand and supply. Energy demand can be effectively split into three areas: electricity, where the biggest source remains coal; transport, still predominantly oil based; and heating, which is currently dominated by gas. As the demand patterns change for these sectors, so does the industry overall.
Find out more, with comment from our Chief Economist Stephen George, in the latest ‘Future of Energy’ report produced by Raconteur and published in The Times.