Despite current weakness in global energy markets and the slowdown in China’s growth, demand for energy will continue to grow over the next 20 years and beyond as the world economy expands and more energy is required to power the higher level of activity.
According to the 2016 edition of the BP Energy Outlook, published today, global demand for energy is expected to increase by 34% between 2014 and 2035, or by an average of 1.4% per year. This growth in overall demand includes significant changes in the energy mix, with lower carbon fuels growing faster than carbon intense fuels as the world begins to transition to a lower carbon future.
The Outlook looks at long-term energy trends and develops projections for world energy markets over the next two decades. The 2016 edition was launched today in London by Spencer Dale, BP’s group chief economist, and Bob Dudley, group chief executive.
“In the middle of a downturn in oil and gas prices, it is important not only to adapt to the current tough conditions, but also to prepare for the next set of challenges. Energy is a long-wave length industry and we need a long term perspective of how the energy landscape we operate in is likely to evolve,” said Bob Dudley.
“As this year’s Outlook demonstrates, the world is going to continue to demand growing supplies of energy but the mix of those supplies is changing and becoming less carbon intense. However, further policy action may be necessary to meet international targets to limit carbon emissions.”