ExxonMobil: gas to be fastest growing fuel source as demand rises by 65 pct

Significant growth in the global middle class, expansion of emerging economies and an additional 2 billion people in the world will contribute to a 35 percent increase in energy demand by 2040, according to a new report released by ExxonMobil.

The global middle class is expected to climb from about 2 billion in 2010 to almost 5 billion people by 2030, representing more than half of the world’s population, according to the Brookings Institution. As projected, that middle class expansion, largely in India and China, will be the largest in history and will have a profound impact on energy demand.

According to the report, natural gas is expected to be the fastest-growing major fuel source during the outlook period as demand increases by about 65 percent. Half of that increase will come from the Asia Pacific region, led by China. Utilities and industrial operations are expected to account for about 80 percent of the demand increase worldwide, as operators increasingly choose natural gas because of its lower emissions and versatility as a fuel and feedstock. By 2040, natural gas is expected to account for more than a quarter of global energy use, surpassing coal in the overall mix.

Expanding trade in LNG will create new connections between producers and consumers, the report reveals. Through 2040, LNG trade is expected to more than triple to nearly 100 BCFD. Most of this growth will serve existing demand in Europe and rapidly growing gas demand in Asia; however, Latin America and Africa also are expected to see expanded LNG imports.

The outlook projects that the North America unconventional gas production will nearly triple by 2040 and the region is expected to surpass the combined output of Russia and the Caspian region as the largest gas-producing area. In Asia Pacific, gas production is seen doubling by 2040, driven partly by unconventional production technologies. Demand in the region is expected to climb by about 170 percent, according to the outlook, and as a result, Asia Pacific will likely overtake Europe as the world’s largest gas importer.

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LNG World News Staff; Image: ExxonMobil