The world’s energy markets will change dramatically around 2020, when North America shifts from a major energy importer to an important fuel source for the world’s middle class, according to Exxon Mobil Corp.’s annual energy forecast.
As FuelFix.com reports, the Irving, Texas-based company’s report predicts that global energy demand will grow by 35% through 2040, driven by 2 billion new people worldwide and the rise of an energy-hungry middle class in developing countries. The report also outlines how supply growth in North America and global efficiency gains will be critical to meeting future energy needs.
Exxon’s vision of the future this year is mostly unchanged from the previous year’s forecast despite a recent drop in oil prices. That drop has removed about 35% of the value of a barrel of oil and appears to be leading to an at least short-term curtailment of U.S. oil production growth. Executives at Exxon did not discuss oil prices during a forecast presentation in Houston on Tuesday.
Exxon predicts that long-term demand will rise significantly as consumers in developing nations begin to close the gap with peers in more developed countries. Energy demand in the more developed countries included in the Organisation for Economic Co-operation and Development is expected to remain flat or fall slightly.
“The demand for energy continues to be driven by two things: people and progress,” says Bill Colton, a planning executive at Exxon. ”Billions of people in these emerging markets are going to rise into the middle class, propelling a nearly 70% increase in their energy demand.” Read the full story.
