Happy New Year to all! As 2017 begins, oil prices are at their highest point in 18 months, as we all wait to see if OPEC, Russia and Co. can hold up their end of the bargain, in regards to production cuts. January 1st, 2017 was the official start date for when OPEC, Russia and other nations agreed to start cutting production by nearly 1.8 million bpd.
As we begin a new year, it’s worth taking a look at a crystal ball as envisioned by ExxonMobil in the 2017 Outlook for Energy. Some highlights:
- Oil is expected to remain the world’s primary energy source by the year 2040. Demand for oil will be driven mainly by the transportation and chemical industries.
- Rising prosperity and a global demand for essential products, many of which will be made with oil and natural gas, will fuel an increase in energy demand for chemical manufacturing by 2040.
- Global transportation energy demand will grow 25% by 2040.
- By 2040, natural gas will power 5% of total transportation, 10% of marine transportation and 25% of the world’s electricity.
- Natural gas will come much closer to coal as the leading fuel source for electricity generation:
- In 2015 natural gas was used for 23% of electricity generation and coal was 39%
- In 2040, it’s projected natural gas will be at 26% vs. 28% for coal
- Global electricity demand is projected to increase by 60% by 2040.