ExxonMobil Forecasts 40% Higher Energy Needs Worldwide by 2020
ExxonMobil Corp. said in a new report that the world will require about 40% more energy in 2020 than today, with consumption levels forecast to reach almost 300 MMboe/d.
These sizeable increases in energy demand were projected internally by the major even with continued improvements in energy efficiency. In total, ExxonMobil expects efficiencies to be about 1% per year, because of improved vehicles, power plants, construction standards and other actions. If efficiency gains were achieved at only half this rate, the world would consume an additional 30 MMboe/d, the report said. Currently, Western Europe consumes close to 30 MMboe/d.
"Developing reliable, affordable supplies to meet this energy demand will be an enormous challenge," said Frank Sprow, ExxonMobil's vice president of Safety, Health and the Environment. "Meeting future demand and developing more efficient uses of energy while taking actions to reduce greenhouse gas emissions will make this challenge even greater."
According to the report, 80% of the energy growth from 2000 through 2020 will be devoted to improving living standards in many parts of the developing world, where about 85% of the world's population will live in 20 years. "Because 80% of the world's growth in energy demand through 2020 will be in developing countries, 80% of the growth in carbon emissions will also be in the developing world. As a result, actions to reduce carbon emissions must include consideration of the world as a whole," Sprow said.
The report states that the potential impacts of greenhouse gas emissions on society and ecosystems may prove to be significant. "To address these risks, we have for many years taken actions to improve efficiency and reduce emissions in our operations and in customer use of our products," said Sprow. He said the company also is working with the scientific and business communities to undertake research to create economically competitive and affordable future options to reduce long-term global emissions.
In the context of the use of oil and gas in the overall economy, the report estimates that by far, most of emissions arise from consumer use of fuels (87%), with the remainder from energy industry operations (13%). "Therefore, we also undertake research on petroleum manufacturing efficiency improvements, as well as on advanced vehicles and fuels with automobile manufacturers," Sprow said.
Sprow noted that the 24-page report was developed to clearly convey ExxonMobil's positions, research and actions on critical energy issues. "The company's strategy in addressing these issues includes expert analysis and consultation with others, investment discipline, broad diversity in its energy portfolio, and breadth of research on energy-related issues and opportunities" Sprow said.
To read the full report, visit the company's web site at www.exxonmobil.com.
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