Statoil: Natural Gas Is the Future

Statoil has said that a drive towards cleaner fuel and carbon climate targets will see global demand for gas rise by 60 per cent by 2040.

Despite an overall increase in oil demand by 40 per cent by that year, Statoil says that gas will have an increasing importance in the energy mix, playing a vital part in the challenge of climate change.

In its Energy Perspectives 2012 report, Statoil says it sees the growth of oil demand slowing down as gas, a lower carbon fuel, takes over.

"Following steady annual growth around 1.0 mbd, global oil demand is expected to slow down during the 2020s, before it levels out just above 100 mbd around 2030," Statoil's chief analyst Eirik Wærness said.

This plateauing will be down to greater electricity and gas penetration in the market, increased energy efficiency and a slowing down of economic growth, the company said.

This will give gas the opportunity to overtake oil in demand, Statoil said, with competitive pricing and availability pushing demand for gas up.

"Natural gas is the future," a statement for the company said.

"Natural gas is the cleanest fossil fuel, and Statoil believes that natural gas will serve as an important and cost-efficient means to meet the challenge of global warming."

The company also sees renewable energy sources increasing in demand by 2040, with renewables becoming "the second most important fuel" in Europe with a 24 per cent share of energy supply.