It its latest forecast, World Energy Outlook 2017, the International Energy Agency predicts a 30 per cent* increase in global energy consumption by 2040, needed to meet the needs of growing populations and improving standards of living, especially for the middle class in emerging economies of China and India. What does this mean for the energy mix of the future?
More of all forms of energy will be needed. Energy produced from renewable sources such as wind and solar will increase substantially due to investments and government policies. More oil and natural gas will also be needed. Oil consumption is forecast to increase 12 per cent by 2040. Natural gas consumption will leap upward 46 per cent as countries shift away from coal to cleaner-burning natural gas, and use it as a dependable energy source to backstop intermittent renewable energy sources like wind and solar. By 2040, oil and natural gas will be relied upon to meet 52 per cent of global energy demand.
With oil and natural gas needed for the foreseeable future, Canada is leading the way with investments in innovations to reduce GHG emissions from oil and natural gas production.
*From IEA World Outlook 2017 New Policies Scenario which takes into account government policies designed to reduce GHG emissions, arising from the 2015 Paris Agreement.