Gas will overtake oil demand in 2026 to become the dominant energy source, according to a new report from global quality assurance and risk management company, DNV GL.
DNV GL’s 2018 Energy Transition Outlook, released Monday, predicts global upstream gas capital expenditure to grow to a peak of $1.13 trillion in 2025 and forecasts that global gas demand will peak in 2034.
The report predicts that oil and gas together will meet 40 percent of world energy demand in 2050, compared with 53 percent today. Gas will meet 25 percent of world energy demand by mid-century, with global oil demand peaking in 2023, according to DNV GL’s latest report.
“Our outlook affirms that the switch in demand from oil to gas has already begun. Significant levels of investment will be needed in the coming decades to support the transition to the least carbon-intensive of the fossil fuels,” Liv A. Hovem, CEO of DNV GL – Oil & Gas, said in a company statement.
“Gas will fuel the energy transition in the lead-up to mid-century. It sets a pathway for the increasing uptake of renewable energy, while safeguarding the secure supply of affordable energy that the world will need during the energy transition,” Hovem added.
Norway headquartered DNV GL describes the Energy Transition Outlook as “an independent forecast of the world energy mix in the lead-up to 2050”.