Global chemicals industry's energy demand to rise by 55% from 2010 to 2040: ExxonMobil

The demand for energy from the global chemicals industry is expected to rise by about 55% from 2010 to 2040 and account for 35% of the growth in the industrial sector, according to ExxonMobil’s Outlook for Energy: A View to 2040, which was released on December 12, 2013. Most of the energy demand growth in the chemicals sector will be for the feedstocks to make the building blocks for a wide range of essential products. Fuel demand will grow more slowly as improvements to efficiency reduce demand growth.
 
The report also added that high growth in unconventional natural gas supply in North America will provide a strong foundation for increased economic growth across the US, and most notably in industries such as energy, chemicals, steel and manufacturing.
 
According to ExxonMobil’s report, the world will require all forms of energy over the next quarter century to meet a greater than one-third increase in demand that will be driven by population growth, improved living standards and expanded urbanisation.
 
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“Understanding global energy trends is absolutely critical for effective energy policy. The world depends on safe, reliable and affordable energy development to support economic growth and our modern way of life,” said Rex W Tillerson, Chairman and CEO, Exxon Mobil Corporation.
 
In its annual forecast, ExxonMobil projects that future energy needs - expected to be about 35% higher in 2040 than 2010 - will be supported by more efficient energy-saving practices and technologies, increased use of less-carbon-intensive fuels such as natural gas, nuclear and renewables as well as the continued development of technology advances to develop new energy sources. Without gains in efficiency, global energy demand could have risen by more than 100 percent.
 
The outlook projects that oil and natural gas will continue to meet about 60% of energy needs by 2040. Liquid fuels - gasoline, diesel, jet fuel and fuel oil - will remain the energy of choice for most types of transportation because they offer a unique combination of affordability, availability, portability and high energy density.
 
An expected 25% increase in demand for oil, led by increased commercial transportation activity, will be met through technology advances that enable deep-water production and development of oil sands and tight oil.
 
Natural gas will continue to be the fastest-growing major fuel source as demand increases by about 65%. Natural gas is projected to account for more than one quarter of all global energy needs by 2040 and it is expected to overtake coal as the largest source of electricity.
 
Nuclear energy will see solid growth despite some countries scaling back their nuclear expansion plans following the 2011 Fukushima incident in Japan. Growth will be led by the Asia Pacific region, where nuclear output is projected to increase from 3% of total energy in 2010 to nearly 9% by 2040. Renewable energy supplies - including traditional biomass, hydro and geothermal as well as wind, solar and biofuels - will grow by nearly 60%. Wind, solar and biofuels are likely to make up about 4% of energy supplies in 2040, up from 1% in 2010.