Page 16 - Gi flipbook - October 2018

INDUSTRY

INVESTMENT

GEARS TO GAS

REGIONAL DIVERSITY
The industry’s growing confidence in
gas reaffirms expectations for it to
remain a crucial component of the
energy mix over the coming decades.
However, the pace of the industry’s
conversion to a lower carbon energy
mix differs regionally. More than half
(51 per cent) of respondents to the
research in the Middle East and North
Africa say that their company is
actively preparing this year for the
shift, compared with only a third in
North America (33 per cent).
The Middle East and North Africa
region expects the most significant
increase in both onshore and offshore
Industry leaders are looking to step-up pipeline investment by 2021, but
spending on gas projects in the year ahead major projects are underway globally.
This chimes with DNV GL’s long-term
forecast for the energy transition. The
The oil and gas sector is undergoing a company’s 2018 Energy Transition
rapid transformation. Research reveals Outlook (ETO), an independent
that spending on global gas projects and forecast of the global energy mix in the
business portfolios is set to rise as the lead-up to 2050, predicts continued
decline in European gas production.
energy mix gets a thorough shake-up North East Eurasia, and Middle East
over the next decade. Graham Bennett, and North Africa are predicted to
Vice President with DNV GL – Oil & Gas, increase gas output towards at least
2035. In doing so, they will overtake
examines the pace and practicalities of the energy transition North America as the world’s largest
gas-producing region.
esearch from DNV GL, the respondents, revealed the primary Production is also forecast to rise in
leading technical advisor driver for investment in natural gas and China, the Indian subcontinent, and
to the oil and gas industry, LNG projects this year is the long-term South East Asia, with output more
has revealed that nearly energy transition (Figure 1). A clear than doubling in the latter two regions.
R half (44 per cent) of majority (86 per cent) agree that gas, DNV GL’s model predicts power
senior oil and gas professionals the least carbon-intensive fossil fuel, generation to be the primary
globally are actively preparing for the will play an increasingly important role consumer of gas in most regions,
transition to a lower-carbon energy in the energy mix over the next decade, supporting intermittent renewables,
mix this year. Despite the continued up from 77 per cent last year. though manufacturing could demand
cost-constrained climate in the sector, Nearly three-quarters (72 per cent) similar volumes in emerging markets.
the company’s 2018 oil and gas believe that, as traditional coal energy
Industry Outlook shows sector leaders generation will significantly reduce A CHANGING ENERGY
and decision makers are looking to over the coming decades, the long- LANDSCAPE
step-up spending on gas projects, with term attractiveness of gas as an The ETO predicts a small increase in
64 per cent intending to increase or energy carrier will grow to sustain and global oil demand in the coming years.
sustain investment. even increase demand through to the This is expected to peak in 2023
The study, which involved 813 mid-2030s. before declining steeply (Figure 2).

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