Economic Report 2019

ECONOMIC REPORT 2019

Even in the most ambitious scenarios, such as the IEA Sustainable Development scenario shown in Figure 24, oil and gas will continue to provide a vital contribution to meeting global energy demand. In this scenario, which is consistent with limiting global warming to less than 2°C, oil and gas would still be required to meet 48 per cent of energy demand in 2040, compared with 54 per cent at present. The same path would also see the relative importance of gas increase from 22 per cent to 25 per cent of demand.

Figure 24: Global Energy Demand Forecast Under the Paris-Compliant, IEA Sustainable Development Scenario

16,000

Oil

Gas Coal

Bioenergy Nuclear

Hydro Other Renewables

14,000

12,000

10,000

8,000

6,000

4,000

Energy Demand by Source (mtoe)

2,000

0

2000

2017

2025

2030

2035

2040

Source: IEA

However, the ways in which oil and gas is produced and consumed will continue to evolve in line with the expectations of both society and investors. This transformation is already underway as oil and gas producers, their suppliers, governments and other industries drive policies to ensure that global energy supply is sustainable, affordable and secure.

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