As per the first Energy Transition Outlook published by DNV GL, natural gas will surpass oil to become the main source of energy by the year 2034 and by the year 2050, it will satisfy 27% of the global energy needs.
DNV GL is an international accredited registrar and a global quality assurance and risk management services provider to the oil and gas, maritime, and power industries. The total gas supply globally is expected to reach its peak in the year 2035.
Big Oil is the term used to for the world’s seven or eight largest publicly owned oil companies and also known as supermajors. The supermajors, considered as BP plc, Chevron Corporation, Exxon Mobil Corporation, Royal Dutch Shell plc, Total SA and Eni SpA, and sometimes Phillips 66 Company is also included in the group. The DNV GL report further says crude oils supply will become stagnate (without any growth) during the period of 2020 to 2028 and will start declining steadily after that. This forecast is certainly not a good news for the pure oil producing companies but most welcomed by gas producers. It is also true that Big Oil giants like BP and Shell have already shifted their focus towards gas exploration and are making heavy investments in this sector than oil exploration.
The classic example is the Big Oil BP, will be shifting its headquarters for its Lower 48 division to Denver in 2018, because it has found a highly productive gas field in New Mexico’s San Juan Basin. DNV report on oil production in near future specifically says renewables will be responsible for fossil fuels’ decline by the year 2050. And fossil fuels and renewables will have almost an equal share in global energy production. Thanks to the falling costs of renewable energy installations, especially in the solar energy and the rising awareness of effects of global warming across the world about.
The solar PV and wind power generation are likely to double in near future and the costs of these two power generation sources are expected to reduce by 18% and 16% respectively. DNV further claims, with the technological revolution the power generation cost for global energy generation will be down from the current 5% of the world’s GDP to less than 3%.