DNV GL’s 2018 Energy Transition Outlook, an independent forecast of the world energy mix in the lead-up to 2050, predicts global upstream gas capital expenditure to grow from USD960 billion (bn) in 2015, to a peak of USD1.13 trillion in 2025. Upstream gas operating expenditure is set to rise from USD448 bn in 2015 to USD582 bn in 2035, when operational spending will be at its highest.
“The energy transition will be made up of many sub-transitions. Our Outlook affirms that the switch in demand from oil to gas has already begun. Significant levels of investment will be needed in the coming decades to support the transition to the least carbon-intensive of the fossil fuels,” said Liv A. Hovem, CEO, DNV GL – Oil & Gas.
Gas will fuel the energy transition in the lead-up to mid-century. It sets a pathway for the increasing uptake of renewable energy, while safeguarding the secure supply of affordable energy that the world will need during the energy transition,” Hovem added.
- Energy Transition Outlook forecasts upstream gas capital expenditure to grow to a peak of USD1.13 trillion in 2025
- This will enable gas to overtake oil as the world’s primary energy source in 2026
- LNG capacity is forecast to double by the late 2040s, connecting shifting sources of gas with changing demand centres
- Focus on decarbonization intensifies as greener gases enter transmission and distribution systems in the lead-up to 2050.
Source DNV GL