DNV GL Predicts Bright Future For Gas In Energy Transition

Natural gas projects will receive a significant investment boost as it becomes the world’s primary energy source in 2026 and account for a quarter of the world’s energy by mid-century, according to DNV GL’s 2018 Energy Transition Outlook.

Hans Kristian Danielsen, vice president for DNV GL Oil & Gas, called this  a good news story for gas. “We foresee quite an early peak for oil demand, as early as 2023, because we expect a higher uptake in electric vehicles than other analyses,” he said. “At the same time, we predict a higher gas contribution with growth in gas demand until 2035 before that peaks as well.”

The outlook, released Sept. 10, predicts that global upstream gas capex will increase from $960 billion in 2015 to a peak of $1.13 trillion in 2025. Upstream gas operating expenditure is set to rise from $448 billion in 2015 to $582 billion in 2035 when operational spending will be at its highest.