“In the ET scenario, noncombusted use of fuels grows at almost twice the rate of other industrial uses, with its share overall industrial demand increasing to nearly 20% by 2040,” the report indicated. Oil will account for nearly two thirds of this growth, with gas providing much of the remainder, it said.
Plateau instead of peak
“Think plateau, not peak, when considering future oil demand,” Dale suggested. “It still will be needed, but demand won’t grow as quickly. That means the world will have to continue investing in development and production.” US producers and members of the Organization of Petroleum Exporting Countries will satisfy most of the additional demand, assisted by Russia and Brazil, the outlook said.
“The world will need continuing investments in oil, but it will be increasingly competitive,” Dale said. “Consequently, the emphasis will be on investing in lower-cost basins, although higher-cost areas will continue to work if there’s already significant infrastructure available.”
The BP forecast’s renewable energy sources do not include nuclear or hydropower, he said. Consequently, wind, solar, and other alternatives are expected to meet practically all the demand from electric vehicles, Dale said.
“BP, like nearly everyone else, has been surprised by how fast renewable energy has grown in the last 10 years,” he said. “Part of this has come from government support, but much has come from consumers. Under the ET scenario, we assume that will encourage governments to begin phasing out their renewable energy support programs starting in the 2030s.”
Contact Nick Snow at [email protected].