GRI: Industrial Energy Demand Up 25% by 2015
In its latest study, the Gas Research Institute (GRI) predicted
natural gas will dominate the market share among competing fuels
for industrial energy demand over the next 15 years. Currently,
industrial demand accounts for 45% of all gas consumption. The
study, released last week, was prepared by the GRI and Energy and
Environmental Analysis Inc.
The Institute said gas will account for 35% of the total
industrial energy demand through 2015. Gas consumption, driven by
usage associated with stand-alone boilers, cogeneration and process
heat, is expected to increase from 10.2 quadrillion Btus (quads) to
13.3 quads in 2015. Petroleum will retain a 32% market share, the
GRI said. Electricity consumption will increase from 3.5 quads to
5.2 quads, but will still account for only 15% of total industrial
Gas use in stand-alone boilers and cogeneration is expected to
have annual increases of 1.4% and 1.3%, respectively, over the
15-year time period. An increase is also predicted for the process
heat sector, from 52% in 1996 to 56% in 2015.
"The stability of the gas load and the projected strong growth
in consumption serve as a solid foundation that is highly
beneficial to gas consumers in other sectors," said Marie Lihn, the
GRI project manager.
The driving force behind all these increases is industrial
production, which is expected to jump 2.9% annually, more than
double the expected growth in industrial sector energy consumption
of 1.3%. The chemical industry will continue to be the largest
energy user, the Institute predicted, as it will increase its
consumption 3.2 quads from current levels to reach 10.8 quads in
"Industrial production is the key driver of energy demand," said
Lihn. "The gap between industrial production and energy consumption
is a healthy indicator of the continuing trend toward greater
efficiency and conservation by American industry and changing
market dynamics, including faster growth in less energy-intensive
Questions should be addressed to Kelly Murray, GRI Baseline
Center, Arlington, VA., at 703-526-7832. The study can be ordered
from the GRI Document Fulfillment Center by fax at 630-406-5995.
The study is $20 for GRI members and $25 for nonmembers.
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