ExxonMobil expects global energy demand to rise 35% by 2040 - CEO

06 March 2013 15:41  [Source: ICIS news]

NEW YORK (ICIS)--US-based ExxonMobil expects global energy demand to rise by 35% from 2010 levels by 2040, led by higher growth in natural gas, its chief executive said on Wednesday.

“We expect natural gas to see a 65% increase in demand to become the second most used source of energy after oil,” said Rex Tillerson, chairman and CEO of ExxonMobil at the company's annual analyst meeting at the New York Stock Exchange.

Natural gas demand will grow by an average of 1.7%/year, higher than oil at 0.8%/year. Natural gas demand will overtake that of coal, which is projected to decline by 0.1%/year.

Unconventional natural gas production, such as that from shale, will rise from less than 15% of total gas production in 2010, to about a third of global gas production by 2040, noted Tillerson.

“We also expect NGL [natural gas liquids] production to grow as a byproduct of the growth of natural gas resources,” Tillerson said.

The company expects nuclear energy demand to rise by 2.4%/year and other sources to gain by 1.4%/year, but off of lower bases.

Geographically, Asia will account for 60% of the increase in energy demand, said Tillerson.

By: Joseph Chang
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