Energy consumption set to increase 48% by 2040

Energy consumption set to increase 48% by 2040

Economic growth in India, China and various parts of Asia are anticipated to drive the world’s energy consumption up by 48 per cent in the next three decades, according to the U.S. Energy Information Administration (EIA).

An increase of 815 quadrillion Btu is expected by 2040, but fossil fuels will still be the main energy source. Petroleum and natural gas will dominate and coal consumption is expected to globally fall, except in India where emission reduction efforts are currently less than the rest of the world.

The EIA released an updated version of its International Energy Outlook yesterday stating production is set to grow in OPEC and non-OPEC countries, except for OECD Europe.

Adam Sieminski, EIA’s administrator said the association believes energy consumption will rise by 1.4 per cent per year between 2012 and 2040 and despite global population  being predicted to grow at a slower rate, it is thought industrial use will expand.

Sieminski also noted there are economic uncertainties in China, Brazil and Russia in addition to the execution of climate policies such as the Paris agreement.

The report said increasing crude oil and lease condensate volumes from OPEC producers are anticipated to add 13.2 million barrels per day to the world’s liquids production increase and non-OPEC countries will contribute 10.2 million more.

The drop in oil prices led the EIA to decrease its production forecast for non-OPEC producers, including the United States.

According to the report, “Total OPEC liquid fuels production represents between 39% and 43% of total world production throughout the projection.”