U.S. EIA Releases International Energy Outlook 2017
The U.S. Energy Information Administration (EIA) released its International Energy Outlook 2017 that assesses international energy markets, including transportation, through 2050.
The report found that natural gas is expected to be one of the fastest-growing forms of energy used for transportation in OECD countries on a percentage basis, a trend largely driven by favorable economics in heavy trucking.
“The share of natural gas as a transportation fuel grows from 4% in 2015 to 9% in 2040. Natural gas consumption for passenger and freight transportation—excluding natural gas pipeline consumption—grows to nearly six times its 2015 level by 2040, reaching 9 quadrillion Btu in 2040.”
However, most of the growth in transport-related energy demand is expected to occur in non-OECD countries, where increased stability and investment and long-term economic development are the market enablers.
“Natural gas and electricity, while starting from much lower levels of use than liquid fuels in the transportation sector, are the fastest-growing forms of transportation energy use, with consumption of each approximately tripling between 2015 and 2040. Natural gas consumption for passenger and freight transportation increases nearly 500% from 2015 to 2040, up nearly 8 quadrillion Btu.”
Overall, natural gas is highly competitive as an energy source, as global natural gas consumption increases by 1.4%/year. Although consumption of non-fossil fuels is expected to grow faster than fossil fuels, fossil fuels still account for 77% of energy use in 2040.
The full report is available for download here.