New energy investments need 'unprecedented' and 'systematic' change, warns IEA

International Energy Agency sees crunch on oil consumption

International Energy Agency sees crunch on oil consumption

The IEA stated in its World Energy Outlook 2018 that energy demand would increase by over 25% between 2017 and 2040, assuming more efficient energy use, but that it would increase by twice that without these improvements.

Solar PV, the IEA has said, is "charging ahead" of other renewables in numerous markets and, alongside gas, is "re-shaping" the power sector entirely.

The IEA predicts the growth of electricity generation by 60% until 2040.

IOGP executive director Gordon Ballard said: "The case for investments in exploration and production is clear: all IEA scenarios show strong future demand for oil and gas".

A more comprehensive energy system strategy - centred on significantly more widespread deployment of renewables - would be required to both accommodate for rising demand and meet climate targets.

However, global demand is not expected to peak until around 2040.

Dr Fatih Birol, executive director of the IEA, said: "We have reviewed all current and under-construction energy infrastructure around the world - such as power plants, refineries, cars and trucks, industrial boilers, and home heaters - and find they will account for some 95% of all emissions permitted under global climate targets in coming decades".

A report by the United States -US-based International Energy Agency (IEA) has warned of potential upheavals in the global crude oil market between this year and 2020.

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Included in this year's WEO is a special focus on the growth of electricity demand and consumption, with power's share of total final energy consumption set to grow from 19% now to 24% by 2040 in the IEA's "New Policies" scenario, described as a "far cry from full electrification".

According to the IEA's projections, wind energy will become the EU's largest power source in 2027, overtaking coal, nuclear and then gas in the process.

Continued development of fossil fuel alternatives should gradually help wean the world from oil and gas dependence; however, there are still no legitimate replacements, be they solar, wind, electricity or bioenergy, with the properties needed to displace fossil fuels from their predominance atop the heating and transportation power pyramid.

Now in its 21st edition, this year's conference was opened by the United Arab Emirate (UAE) president, Sheikh Khalifa Bin Zayed Al Nahyan, with the theme: "Shaping the future of the world's oil and gas industry". This means by 2025 US shale oil production should rise more than twofold to 9.2 million bpd. Total US production is running at more than 11.5 million barrels a day and the US Energy Information Administration expects output this year to average 10.9 million barrels a day and well over 12 million barrels a day in 2019. China will remain the biggest emitter.

The United States, already the world's top oil producer due to its shale revolution, is projected to lead new oil production up to 2025, accounting for 75 percent of increases.

Major transformations are underway for the global energy sector, from growing electrification to the expansion of renewables, upheavals in oil production and globalisation of natural gas markets.

However, the report notes that most emissions related to energy infrastructure are "essentially locked-in", with relatively young coal-fired power plants in Asia set to contribute to global Carbon dioxide emissions for decades to come.

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