Potential for Golden Age of Gas
Ample gas supplies (much of it from unconventional sources), robust emerging markets and uncertainty about nuclear power all point to a prominent role for gas in global energy mix according to a report from the International Energy Agency (IEA).
The report, titled, “Are We Entering a Golden Age of Gas?” presents a scenario in which global use of gas rises by more than 50% from 2010 levels and accounts for more than a quarter of global energy demand by 2035.
The IEA also said that the steep increase expected in gas demand would end the current gas glut by 2015, by when demand would begin to outstrip supply.
Gas will make inroads on other fossil fuels with the IEA expecting global gas demand to “overtake coal just after 2025, and come close to oil around 2035.”
According to the energy agency, the impact of Fukushima will significantly curb the rise in nuclear power generation, with gas stepping in to fill the gap.
The report said around 40% of the increase in global gas production between now and 2035 will come from unconventional gas exploration, such as shale gas or coalbed methane gas.
The increase in unconventional gas exploration is good news in terms of securing global energy supply according to the agency, however questions about the use of hydraulic fracturing has raised environmental concerns.
The IEA urged governments to introduce effective safety regulation regarding unconventional gas production and for companies to employ “golden standards of practice,” providing disclose of fracking fluids and adhering to best practices in production to mitigate potential risks, such as excessive water use, contamination and disposal.
The report said non-OECD countries would account for 80 percent of global demand growth, with China and India to use over 600 billion cm of gas and over 200 billion cm of gas respectively, by 2035.
The IEA also said it expects Australia to become one of the world’s top exporters of liquefied natural gas (LNG) by 2020, catching up with current leader Qatar.
Read the IEA Press Release "Are We Entering a Golden Age of Gas?" HERE