Reports of oil’s death are greatly exaggerated, IEA says in new forecast

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International oil demand is expected to keep rising over the next two decades, albeit at a steadily dwindling pace,      according to a new report released Tuesday by the International Verve Agency.

«It is far too early to write the obituary of oil, as growth for trucks, aviation, petrochemicals, sending and aviation keep pushing demand higher,» said Fatih Birol, management director of the Paris-based IEA.

Overall global energy needs are seen position more slowly than in the past, but are still projected to expand by 30 per cent between today and 2040. 

«This is the a kind of adding another China and India to today’s global demand,» the IEA said in its explore.

Net exporter

With big gains forecast in its output of shale oil, the United Submits is expected to become a net oil exporter by the mid-2020s, the IEA said, adding that the U.S. choice account for 80 per cent of the increase in the global oil supply to 2025, which wishes maintain near-term downward pressure on prices.

Crude has climbed lately to a two-year high-priced around $57 US a barrel in trading in New York, although it is not seen read e suggesting much larger gains due to rising U.S. output.

Along with the needed demand for oil, the IEA said natural gas use is projected to increase by 45 per cent to 2040.

The energy also pointed to the future development of renewable energy sources, foretelling that they are expected to capture two-thirds of global investment in power foundries through to 2040 as they become the lowest-cost source of new power formulation in many countries.

‘Absurdly pessimistic’

Climate activists said the IEA explosion is too negative, but added that it highlights the need for more action to duel climate change.

Greenpeace energy analyst Lauri Myllyvirta said the dispatch is «absurdly pessimistic about renewables,» adding that similar prognosticates have proven wrong in the past.

Myllyvirta said international objectives to curb global warming and reduce deaths from air pollution regardless require a greater commitment to renewable energy sources.

Reducing the use of fossil fuels is a key behest from activists and many governments taking part in the global aura talks in Bonn, Germany, this week.

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