The International Energy Agency”s (IEA) executive director Nobuo Tanaka said that oil”s twilight as an industrial fuel continues, and this is becoming increasingly noticeable in the transportation and petrochemical sectors, according to a report by Industrial Info Resources. Meanwhile, Tanaka says gas continues to increase in power generation, as well as industry and space heating.
The comments were made in reference to the “Medium Term Oil and Gas Markets 2011″ report by the IEA, which was debuted at the St. Petersburg International Economic Forum last week. According to the report, annual base growth in oil demand could average up to 1.2 million barrels per day (BBL/d) through 2016, while natural gas demand could grow by 500 billion cubic meters over the same period, representing about 2.5 times Russia”s current gas exports.
Making an assumption, not a forecast, that oil averages $102 a barrel (an increase of $20 on last year”s assumed price) the report projects that as higher prices unlock new supplies, the growth in oil supply averages 1.1 million BBL/d. Iraq, United Arab Emirates and Angola are the leading growth prospects from OPEC, while non-OPEC increases are driven by Brazil, Canada, Kazakhstan and Colombia. Conventional oil will account for less than 40% of the increase, while natural gas, biofuels and unconventional oil from the U.S. will account for the lion”s share of new supplies, says the report.
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