World Energy Outlook 2012: Unconventional gas production increases strongly to 2035

22.11.2012

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"While the regional picture for natural gas varies, the global outlook over the coming decades looks to be bright, as demand increases by 50% to 5 trillion cubic metres in 2035. Nearly half of the increase in production to 2035 is from unconventional gas, with most of this coming from the United States, Australia and China."

This in one of the major conclusions of the World Energy Outlook 2012, published in November by the International Energy Agency IEA.

In the executive summary it is also stated that "... the unconventional gas business is still in its formative years, with uncertainty in many countries about the extent and quality of the resource base. As analysed in a World Energy Outlook Special Report released in May 2012, there are also concerns about the environmental impact of producing unconventional gas that, if not properly addressed, could halt the unconventional gas revolution in its tracks. Public confidence can be underpinned by robust regulatory frameworks and exemplary industry performance. By bolstering and diversifying sources of supply, tempering demand for imports (as in China) and fostering the emergence of new exporting countries (as in the United States), unconventional gas can accelerate movement towards more diversified trade flows, putting pressure on conventional gas suppliers and on traditional oil-linked pricing mechanisms for gas."

The scenarios presented in the WEO-2012 show also that renewables will be increasingly used for power generation until 2035, but fossil fuels will remain dominant in the global energy mix. But even with the strong increase in renewables and natural gas used as energy sources, the report emphasizes that symptoms of an unsustainable energy system persist. With regard to climate change it is calculated that four-fifths of the allowable CO2 emissions by 2035 are already locked in by existing power plants, factories and buildings. If action isn't taken by 2017, all the allowable emissions for 18 years after that will be accounted for.

WEO-2012 presents also the results of an Efficient World Scenario, which shows what energy efficiency improvements can be achieved simply by adopting measures that are justified in economic terms. Rapid deployment of energy-efficient technologies – as in the Efficient World Scenario – would postpone the complete CO2 lock-in to 2022, buying time to secure a muchneeded global agreement to cut greenhouse gas emissions.



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World Energy Outlook 2012: Unconventional gas production increases strongly to 2035