The International Energy Agency (IEA) sees world energy demand growing at a compound annual average growth rate of 1% from 2014 to 2040, driven by economic development in emerging markets.
Oil: a key part of the energy mix into the future
The energy density and flexibility of oil means it will continue to play a key role in meeting global energy demand to 2040. Demand for petrochemicals will see the oil market continue to grow into the 2020s despite losing market share in the transport sector to gas and renewables. Although global oil demand may peak towards the end of the next decade, the world will still need new supplies of oil, more than 16 million barrels per day by 2025 just to offset expected field decline.
Gas: an important role in assisting governments
Gas is set to play an important role in assisting governments meet their dual commitments to reduce greenhouse gas emissions and to deliver reliable power. The commitments made by participants at the 2015 Paris Climate Conference (COP21) were an important step in the move to reduce global carbon emissions, which will see gas and renewables increase in market share at the expense of coal. Global demand for gas grows in all of the long-term scenarios considered by the International Energy Agency in the World Energy Outlook 2016.
Gas: an affordable, sustainable component of the energy mix for the long term
We expect global gas demand to continue to grow through to 2040, with LNG demand nearly doubling due to strong economic growth in Asia and new markets opening up in the Middle East and South America. Gas will continue to play an important role in supporting renewables, assist countries to combat local air pollution form coal-fired power, and to lower the carbon intensity of power generation in line with commitments made at COP21. Gas and LNG will also increasingly compete in transport fuel markets, particularly for heavy vehicles and marine fuel.
Woodside is responding to this new market and has launched the first LNG-powered supply vessel in the southern hemisphere.