Confidence in the case for gas is growing, according to a survey by DNV GL, the technical advisor to the industry. 64% of oil and gas sector leaders expect to increase or sustain spending on gas projects in 2018, as the sector prepares for gas to overtake oil as the world’s primary energy source in the mid-2030s.
The vast majority (86%) of the 813 senior industry professionals 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% last year.
Just 33% of survey respondents in North America say that their company is actively preparing for the shift to a lower carbon energy mix this year, compared to more than half (51%) in Middle East and North Africa.
The stage is set for gas to become the largest single source of energy. Demand for it will peak in the mid-2030s, well after the use of each of the other fossil fuels has gone into long-term decline, according to DNV GL’s 2017 Energy Transition Outlook, an independent forecast of the global energy mix in the lead-up to the mid-century. The model predicts the industry’s intentions for increasing gas investments will accelerate in the early-2020s as major oil companies decarbonise their business portfolios.
Nearly a quarter surveyed (24%) believe that onshore pipeline projects currently in development are adaptable enough to cope with potential long-term changes in the gas mix, such as greater variety of calorific values, hydrogen and biogas. 13% disagree. The survey also found that 72% believe that, as traditional coal energy generation becomes obsolete over the coming decades, the long-term attractiveness of gas will significantly improve.
The number of respondents stating that traditional oil and gas prices will decouple in the long-term has increased from 45% in 2017 to 55% this year.
For more information, visit: www.dnvgl.com
27th June 2018