NationStates Jolt Archive


World oil demand seen soaring

PsychoticDan
20-06-2006, 16:42
Oil consumption seen soaring (http://money.cnn.com/2006/06/20/markets/oil_intl_outlook.reut/index.htm)
Much of world's growth will take place in Asia, although U.S. will still use the most; OPEC needed to meet bulk of demand, EIA says.

June 20, 2006: 9:34 AM EDT

WASHINGTON (Reuters) - World oil demand should soar from this year's almost 86 million barrels per day to 118 million bpd by 2030, even though higher fuel prices will cut back some petroleum usage, the U.S. government's top energy forecasting agency predicted Tuesday.

Much of the growth in global oil consumption over the next quarter century will come from the non-industrialized nations in Asia, where the strong economies of China and India will gobble up more barrels, according to the Energy Information Administration, the statistical arm of the Department of Energy.

"Much of the world's incremental oil demand is projected for use in the transportation sector, where there are few competitive alternatives to petroleum," EIA said in its annual long-term international energy supply and demand forecast.

The Organization of Petroleum Exporting Countries will provide a large chunk of the additional oil supplies that will be needed to meet demand in 2030, the EIA said.

However, the agency said OPEC's total share of global supply will fall from 39.7 percent (34 million bpd) of this year's world oil demand to 38.4 percent (45.3 million bpd) of global oil demand in 2030.

While worldwide oil consumption rises, expected high crude prices will reduce demand by some 8 million bpd more than forecast last year in 2025 to 111 million bpd, EIA said. This year's forecast has projections out to 2030 for the first time.

Oil production from non-OPEC countries in West Africa and the Caspian Sea region is forecast to increase sharply and grab a larger share of the global oil market over the next 25 years.

Oil output is expected to decline in Norway, Europe's largest producer, from a peak of 3.6 million bpd this year to 2.5 million bpd in 2030.

Despite President Bush's call for the United States to end its addiction to oil, Americans will use more crude and retain the title of the world's biggest energy consumers.

U.S. oil demand is forecast to jump from 20.8 million bpd this year to 27.6 million bpd in 2030, still accounting for about one out of every four barrels of crude consumed each day in the world.

The EIA's long-term forecast to 2030 also predicted:

- Global natural gas consumption will jump from 95 trillion cubic feet in 2003 to 182 trillion cubic feet.

- Coal use will grow at an average annual rate of 2.5 percent.

- High oil prices will raise concerns about the security of energy supplies and will increase nuclear power generating capacity.

- Carbon dioxide emissions linked to global warming will rise from 25 billion tons in 2003 to 43.7 billion tons. Non-industrialized nations will account for 75 percent of the increase in emissions by 2030.

- Renewables, like solar and wind power, will meet 9.1 percent of U.S. energy demand in 2030, almost double from 5.7 percent in 2003.Does anybody actually believe that the world will ever produce 188 million barrels/day? The world is groaning now under the strain of producing 85 million barrels/day. Saudi Arabia has publically balked at the prospect of ever being able to produce the barrels the EIA forcast it needs to produce by 2020 if world oil demand is to be met.
Vetalia
20-06-2006, 16:56
I don't think so. I'm guessing 100 million bpd is going to be the high-water mark, since I've heard there is about 15 million bpd of new projects coming online in the next decade or so. Even so, that will not be enough to satisfy the average 1.7% rate of demand growth in the period; it'll leave us with at best a 1 million bpd supply cushion. Natural gas might be able to keep up with demand for a while but at current rates we have about 70 years worth of proven reserves; if demand rises to 182 bcf that amount is shortened to 28 years. That would be all reserves, including the post-peak sources.

Coal is the only one that will keep up with demand; it is both abundant and there is a lot of unproven reserves and reserves that are known but untouchable. The main downside to coal is the sheer amount of environmental damage; while CO2 injection and mitigation techniques are going to be used in the US and the rest of the OECD, there's no guarantee that energy-hungry places like China, India, or Russia will have such a committment; the horrendous pollution and emissions records in these nations is bad enough even without hundreds of unregulated coal-fired plants.

We're going to have to use alternatives whether we like it or not, and the rate at which they are implemented will determine whether we will face soaring electricity and heating prices or a relatively mild transition. Technology will increase the amount of oil and gas recovered and may turn the peak in to a milder plateau for a while, but there's no way we will get to 125 million bpd or 188 million bpd.
PsychoticDan
20-06-2006, 17:06
I don't think so. I'm guessing 100 million bpd is going to be the high-water mark, since I've heard there is about 15 million bpd of new projects coming online in the next decade or so. Even so, that will not be enough to satisfy the average 1.7% rate of demand growth in the period; it'll leave us with at best a 1 million bpd supply cushion. Natural gas might be able to keep up with demand for a while but at current rates we have about 70 years worth of proven reserves; if demand rises to 182 bcf that amount is shortened to 28 years. That would be all reserves, including the post-peak sources.

Coal is the only one that will keep up with demand; it is both abundant and there is a lot of unproven reserves and reserves that are known but untouchable. The main downside to coal is the sheer amount of environmental damage; while CO2 injection and mitigation techniques are going to be used in the US and the rest of the OECD, there's no guarantee that energy-hungry places like China, India, or Russia will have such a committment; the horrendous pollution and emissions records in these nations is bad enough even without hundreds of unregulated coal-fired plants.

We're going to have to use alternatives whether we like it or not, and the rate at which they are implemented will determine whether we will face soaring electricity and heating prices or a relatively mild transition. Technology will increase the amount of oil and gas recovered and may turn the peak in to a milder plateau for a while, but there's no way we will get to 125 million bpd or 188 million bpd.
That new 15 million barrels/day of production coming online in the next decade will not add 15 million barrels/day of production to total world production because we'll lose production from other areas. From Mexico alone over the next two to three years we'll lose about 2 million. It's safe to say that if the US decline continues apace we'll lose another million there. The North Sea is in rapid decline so we'll probably lose another two or tree million from there...
Myrmidonisia
20-06-2006, 17:13
Hopefully, the government will be able to see past the eco-radicals and open up ANWR for oil production.
MrQuestion
20-06-2006, 17:19
Haha.

Were screwed. Hello subsitence agriculture!

On a bright note, all the poli-sci grads will end up starving to death/becoming serfs. So it's not all bad news.
Dobbsworld
20-06-2006, 17:19
Hopefully, the government will be able to see past the eco-radicals and open up ANWR for oil production.
Pillock.
PsychoticDan
20-06-2006, 17:20
Hopefully, the government will be able to see past the eco-radicals and open up ANWR for oil production.
Opening up ANWR for production is like trying to piss out a forrest fire. It will do so little to solve these problems that it won't even be noticed. It will be opened, but it will do very little good.
PsychoticDan
20-06-2006, 17:20
Pillock.
What does that mean? :confused:
Myrmidonisia
20-06-2006, 17:26
Opening up ANWR for production is like trying to piss out a forrest fire. It will do so little to solve these problems that it won't even be noticed. It will be opened, but it will do very little good.
It's more a matter of personal satisfaction for me, than it is a hope for a few more years of oil. The discussion I tried to start on new fuels really had the answers for where we need to head in the future.
PsychoticDan
20-06-2006, 17:32
It's more a matter of personal satisfaction for me, than it is a hope for a few more years of oil.Good because there's only a few months worth of North American oil demand in ANWR and that production will be spread out over decades.

The discussion I tried to start on new fuels really had the answers for where we need to head in the future.
What fuels are those?

The EIA report is here: http://www.eia.doe.gov/oiaf/ieo/index.html
The Remote Islands
20-06-2006, 17:33
Is it me, or is SOMEONE getting greedy for oil?
PsychoticDan
20-06-2006, 17:34
Is it me, or is SOMEONE getting greedy for oil?
I think everyone is greedy for oil...
Myrmidonisia
20-06-2006, 17:39
What fuels are those?

Vetalia gave a couple. Non-crop ethanol and biodiesel were the leaders in fossil fuel replacements. I'm partial to ultracapacitors as a way to store energy in vehicles.
PsychoticDan
20-06-2006, 17:58
Vetalia gave a couple. Non-crop ethanol and biodiesel were the leaders in fossil fuel replacements. I'm partial to ultracapacitors as a way to store energy in vehicles.
What are your production projections for ethanol/biodeisel? By my rudimentary calculations with where I think oil is going and demand is headed I think you'd need to increase production form the current 1 million or so barrels/day of world ethanol production to about 80 or 90 million barrels/day over the next 15 years. That will not happen.
Native Quiggles II
20-06-2006, 18:09
In other news: Online shipping is a rip off, and, President Bush is a failure, just like the war in Iraq: inept, unsalvageable, and overstaying its welcome.
Tactical Grace
20-06-2006, 18:12
Virtually every project being brought onstream today, is not additional capacity, but temporary replacement for declining capacity. Even in Saudi Arabia, most new projects will only temporarily offset decline in the existing base, rather than add new net capacity.

We are still peaking this decade.

Demand-side projections are just that - estimates of what people will want - and they are not going to get it.
PsychoticDan
20-06-2006, 20:59
bump