Exxon Mobil Predicts Oil and Gas Will Still be More Popular than Renewables in 2040
Exxon Mobil Corp. released its annual energy outlook.
The outlook evaluates trends in energy supply, as well as demand and technology, to help the company guide its long-term investments.
The company projects the year 2040 will be a shared energy future, but one still dominated by oil and gas.
It is probably not surprising, but Exxon Mobil sees oil remaining the number one global fuel. Oil and gas are predicted to supply about 60% of global energy demand in 2040, versus about 55% in 2010. The company also sees natural gas growing by 85% and overtaking coal for the number two spot. Nuclear power is expected to double out to 2040.
Exxon did note that wind and solar energy would form an important and growing part of the global energy mix.
As a publically traded oil and gas company could Exxon Mobil not have a secret agenda with this news? Obviously they don't want to worry their shareholders by suggesting that demand for their product will fall in the future as alternative energy becomes more popular.
Secret agenda? they need to demonstrate results from the huge amount spent on tv adverts supporting oil and gas as a fuel for the future - $500 million in 2010 (the bit about wind and solar is probably what their PR advised them to include).
It is interesting, and worrying, to note that Exxon did not mention the effects that the massive increase in energy demand would have on the environment.
If consumption of oil and gas does indeed increase at the rate that they describe then we would be sorely pushed to try and keep temperature rises to less than four degrees, let alone the two degrees we currently aim for.
Exxon must have written this report based on perfect scenarios for increasing oil production and demand. In reality environmental policies will restrict the growth of fossil fuels in the future.
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