Caspian Energy Journal Caspian European Club
Thursday, 08 June 2017 19:00

Oil loses its share in global energy mix

Oil loses its share in global energy mix

Statoil expects substantial changes in the global energy mix. In moving towards a low-carbon energy system, new renewables may increase from just over one percent of total primary energy demand in 2014 to almost twenty percent in 2050. In a scenario that is consistent with the 2-degree target, oil reduces its share from 31 to 23 percent, while gas remains at around 20 percent, Caspian Energy News ( reports with reference to the press statement of Statoil.

“We believe it is possible to realise energy emission reductions consistent with the 2-degree target, but it will require immediate and coordinated global action. We should not underestimate the needed transformation, both in terms of energy efficiency improvements, fuel mix changes and modified consumer behaviour. Unfortunately, many factors today work against such a transformation,” says Chief economist in Statoil, Eirik Wærness.

Oil demand is expected to increase into the 2020s. Dependent on scenario, oil demand in 2050 ranges from below 65 to above 120 million barrels per day, compared to around 97 today.

Regardless of scenario, and in addition to massive investments in renewable energy, we will continue to need large investments in oil and gas due to natural decline in supply from existing fields. In the Renewal scenario, oil supply in 2050 from new reserves not currently in production, will correspond to 15-25 times the current production of Norway.

“Electric cars and plug-in-hybrids could account for around 90 percent of private cars in 2050, and efficiency will be much higher than today. Still, with heavy duty and maritime transport, aviation and petrochemical industry growth, oil demand will be above 60 million barrels per day,” says Wærness.

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Person in charge of the newsline: Fidan Isayeva 

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