A Future Look at Energy Supply and Demand
The energy industry is constantly changing. Advances in technology, population growth, changes in government policy, and changes in business and residential energy trends can all be responsible for significant changes. Each year, multiple energy organizations around the world monitor trends in energy creation, consumption, and output, releasing predictions for the future of energy so companies and consumers can make the best energy choices for their businesses and homes.
Oil is here to stay.
Though other means of energy are making a run for it, oil still has a place in the market for years to come. More developed nations are focused on shifting transportation vehicles to depend less on oil, but developing countries will continue to drive the oil demand growth as the number of cars on the world’s roads rises. Though coal will still be responsible for a large percentage of global electricity production, natural gas is positioned to take much of the market share from coal. Compared to coal, natural gas reduces air pollution and can also serve multiple purposes, where coal is confined to electricity production. In fact, natural gas emits 60% fewer CO2 emissions than coal when used in power generation.
Transportation energy demand rises by 25%.
As global incomes rise, the demand for personal mobility does, too. Whether consumers are spending more time in the car, or spending more money and time on air and train travel, demand in the travel industry is rising and will account for a significant part of energy consumption by 2040.
Global energy demand will increase by 25%.
A number of factors contribute to this theory: advances in technology, increase in living standards, and significant growth in population. When there are more people who have higher living standards, more disposable income, and more access to technology, the energy demand grows significantly.
Though demand goes up 25%, emissions only rise 10% globally.
With more efficient buildings, gains in transportation fuel economy, shifts to less carbon-intensive, and advances in manufacturing and power plant efficiencies, countries can help to reduce their future emissions. Creating a national climate action plan and studying how any new energy policies can help to reduce emissions are critical steps in the process. If you’re interested in learning more about the future of the energy industry, take a look:
U.S. Energy Information Admin and International Energy Outlook report