There are indications that the world will witness huge investments in the gas sector between 2018 and 2020, based on the spirit of decarbonisation, currently spreading across the world.
The latest research conducted by DNV GL indicated that: ‘’nearly half of senior oil and gas professionals are actively preparing for the transition to a lower-carbon energy mix.
The clear majority agrees that gas will play an increasingly important role over the next decade; the stage is set for it to become the world’s largest energy source in the mid-2030s
‘’The energy transition is the primary driver for investment in natural gas and liquefied natural gas (LNG) projects in 2018.
As the oil and gas sector prepares for gas to overtake oil as the world’s primary energy source in the mid-2030s, nearly two-thirds (64 per cent) of the industry’s senior professionals expect to increase or sustain spending on gas projects in 2018, according to research by DNV GL.
‘’Industry leaders are increasingly convinced by the case for gas in the unfolding energy transition.
A clear majority (86 per cent) of global sector leaders surveyed agree that gas, the least carbon-intensive fossil fuel, will play an increasingly important role in the global energy mix over the next decade, up from 77 per cent last year.
‘’Nearly three-quarters (72 per cent) believe that, as traditional coal energy generation is significantly reduced over the coming decades, the long-term attractiveness of gas will flourish.
‘’The findings appear in Transition in Motion, a special report from DNV GL’s research on the outlook for the oil and gas industry in 2018. It reveals the primary driver for investment in natural gas and LNG projects this year to be the global energy transition.’’
“Our research affirms that the industry is already taking positive steps to secure the important role we forecast gas will play in helping to meet future, lower-carbon energy requirements,” said Liv Hovem, CEO, DNV GL – Oil & Gas.
The organisation firm disclosed that: ‘’the industry’s growing confidence in the case for gas reaffirms expectations for it to remain a crucial component of the global energy mix over the coming decades.
‘’DNV GL’s 2017 Energy Transition Outlook (ETO), an independent forecast of the global energy mix in the lead-up to 2050, predicts that global oil demand will plateau over the coming 15 years, peaking in the early 2020s.
‘’ Meanwhile, global gas demand will grow for another two decades, peaking only in the mid-2030s. By then, gas demand will be around 15 per cent greater than in 2017, and gas will have overtaken oil to become the world’s largest energy source.
‘’Of the 813 senior industry professionals surveyed for our 2018 Oil and Gas Industry Outlook, nearly half (44 per cent) report that their organization is actively preparing for a shift to a lower-carbon energy mix this year.
It added: ‘’Power generation will be the primary consumer of gas in most regions, though manufacturing could require similar volumes in emerging markets.
“While demand for gas peaked in Europe in 2010, and is expected to do so in the early 2020s in North America, many regions, such as China and South East Asia, will peak only in the mid-2030s.’’