Looking to the faraway, distant economic landscape of 2035 and beyond, industry leaders are beginning to accept the likelihood of flattening or declining oil demand in the extreme long term.
Already, though, they are employing various strategies to prepare, according to a recent feature from 10/12 Industry Report
Even as current cost factors buoy oil demand, the largest oil producers are fixated on a growing long-term preference for natural gas and renewable forms of energy.
While there is disagreement as to the role oil will play past the mid-century mark, economists say the power and transportation markets will ultimately determine its future, as population increases and the emergence of developing countries lead to an increasing need for energy.
Key is the significantly greater role that natural gas will play in that scenario, with some estimating that demand for the product will double through 2040.
The increased development of shale plays and the proliferation of liquefied natural gas facilities in the past 10 years have propelled the U.S. and Louisiana from importer to exporter, meaning natural gas may secure Louisiana’s spot at the table.