Renewables are now the fastest-growing energy source in history and we estimate that they could account for 14% of all energy consumption in 2040 – if not more. That said, oil and gas could meet at least 40% of the world’s energy needs in 2040 – even on a course that’s consistent with the Paris goal of limiting global warming to less than 2°C.
Gas offers a much cleaner alternative to coal for power generation and can lower emissions at scale. It also provides a valuable back-up for renewables intermittency, delivers heating at the high temperatures required by industry and is increasingly used in transportation.
Oil is the primary fuel for transport today. We expect its share of the total energy mix will gradually decline as we see more energy efficiency in traditional engines, greater use of biofuels and natural gas, and growth in fully electric and hybrid vehicles in the years ahead.
With oil and gas in high demand for years to come, it’s essential that action is taken to reduce emissions from their production and use.