04 Sep Experts predict gas will replace Big Oil in less than two decades
According to experts at Norway-based advisory company DNV.GL, natural gas will become the world’s biggest energy source by 2034, overtaking oil which will peak within 10 years.
DNV’s chief executive Remi Eriksen said the group’s first conservative prediction for the future of the global energy industry will see oil undertake a slow descent as Big Oil corporations transition to wide-scale gas production.
The prediction also indicates there will be a continued renewable energy boom which will see sources such as wind, solar and hydro power meet around half of the world’s energy needs.
“Gas will overtake oil as the world’s biggest source of energy by 2034. By 2050 it will be the single biggest source at 27% of demand,” said Eriksen.
Global oil majors such as BP and Royal Dutch Shell have already begun to shift their portfolios towards natural gas exploration and production following the global oil price crash.
Eriksen said Big Oil’s transition to gas is based on its lower cost compared to oil and the fact that there is a growing demand for non-polluting forms of energy for electricity generators.
“The other factor is electric vehicles which by 2030 will really take a bit out of oil consumption from cars,” he added.