360 million barrels per day of oil equivalent :
photo credit : Shutterstock photo credit : Shutterstock photo credit : Shutterstock
A New Energy Era
The global oil and gas industry has been shaken by the drastic fall in oil prices , which resulted in collapsed earnings , job losses , operational shutdowns and project cancellations . The good news is that the market has started to recover , and that the industry is gradually entering its next growth cycle .
This fact bodes well for the global energy security , as oil & gas remains to be the world ’ s foremost source of energy , even as the world progressively moves towards alternatives .
The world ’ s primary energy demand today is approximately 280 million barrels per day of oil equivalent . An estimated 80 % of it is supplied by fossil fuels , and around a third is met by oil . By 2040 the primary global energy demand will rise to 360 million , some 75 % of it will still be satisfied by fossil fuels .
Although the share of fossil fuels in the global energy mix diminishes by 2040 , their demand in absolute terms still grows , rising from 230 million barrels per day of oil equivalent to 270 million . For oil specifically , it is expected to increase from over 96 million barrels per day to an estimated 104 million .
Even as the role of oil & gas in the global energy mix remains significant for decades to come , however , the industry cannot
afford to be complacent and stay stagnant in the face of imminent change .
In his opening keynote speech on Day 2 of the 2016 World Energy Congress in Istanbul , Amin Nasser , President and CEO of Saudi Aramco , calls on the energy and oil & gas players to take up the cause of developing and embracing innovative ways of doing business as the industry crosses over the next phase .
“ Low oil prices do not change the fact that the current oil and gas resources , as well as new discoveries , are more challenging and more expensive to develop . Equally , today ’ s oil and gas fields are becoming increasingly mature and complex to operate . And although alternatives and renewables face hurdles , their role will steadily grow , as the world moves towards a new energy era driven by the Paris Agreement on climate change .”
“ Navigating the transition period will require a new road map , a real and holistic Energy 2.0 , if you will .”
360 million barrels per day of oil equivalent :
The global primary energy demand by 2040
32 Construction Leaders • April 2017