Gas investments set for steep growth, report claims
A survey by DNV GL indicates that 64% of oil and gas industry leaders expect to increase or sustain spending on gas projects in 2018.
OSLO, Norway – A survey by DNV GL indicates that 64% of oil and gas industry leaders expect to increase or sustain spending on gas projects in 2018.
Gas will likely overtake oil as the world’s primary energy source in the mid-2030s, and confidence in the case for gas is growing, the Transition in Motion survey claims.
Around 86% of the 813 senior industry professionals - up from 77% in last year’s survey - surveyed agreed that gas, as the least carbon-intensive fossil fuel, would be increasingly influential in the global energy mix over the next decade.
However, the pace of change varies by region. Around 33% of respondents in North America said their company was actively preparing for the shift to a lower carbon energy mix this year, compared to 51% in the Middle East and North Africa.
Demand for gas will peak in the mid-2030s, long after the use of all other fossil fuels has entered long-term decline, according to DNV GL’s 2017 Energy Transition Outlook.
Increasing gas investments are likely in the early-2020s, the report suggests, as major oil companies de-carbonize their business portfolios.
Liv Hovem, CEO, DNV GL - Oil & Gas, said: “Significant investment will be needed in the gas industry over the coming decades to increase capacity, transform assets to source and transport a de-carbonized mix of energies, and to safely build and maintain the infrastructure needed to connect emerging supply regions with evolving demand centers.”
Power generation looks set to be the primary consumer of gas in most regions, although manufacturing could consume similar volumes in emerging markets.
Toward 2040, northeast Eurasia and the Middle East and North Africa look likely to increase gas output and overtake North America as the world’s largest gas producer.
Elsewhere, production is also forecast to double in China, the Indian Subcontinent and Southeast Asia.