Fossil Fuels will Continue to Dominate per IEA
Fossil fuels will continue to dominate energy supplies well into the future according to an article in “Rigzone”. Fatih Birol, Chief Economist at the International Energy Agency (IEA), pointed out that in spite of intense efforts to replace fossil fuels with renewables, the former have maintained their preeminent position and will continue to do so. In 1987 fossil fuels supplied 82 percent of the world’s energy and still do. This is not going to change anytime soon according to Birol.
What will change is the mix of fossil fuels. Natural gas will eventually provide more of the world’s energy than oil and coal combined. Renewable supplies will also grow, but global energy demand will increase at the same rate. Consequently, renewables as a percentage of global supply will remain constant.
The use of renewables will grow faster in China than in all of the U.S., Japan and Europe combined. This growth in China will be primarily from hydropower, the only renewable source of energy that is economically viable without government subsidies.
The IEA also anticipates Brazil becoming a major oil exporter, but questions their production reaching their official estimate of 4 million barrels per day. To achieve this level will require an annual investment of $80 billion.
Worldwide, outlays of $15.1 trillion over the next 20 years will be required for production to meet projected energy demand. $4 trillion of this will be necessary to sustain the U.S. shale revolution.
To read this article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/131829/Fossil.