BP: Mideast to Remain Largest Oil Exporting Region

BP: Mideast to Remain Largest Oil Exporting RegionBP: Mideast to Remain Largest Oil Exporting Region

By 2040, the Middle East will remain a large net energy exporter and the world’s largest oil exporting region, but it will lose share as an LNG exporter, according to the 2018 BP Energy Outlook.

“The Middle East remains the largest oil producer and the second largest gas producer, accounting for over 34% of global liquids production and 20% of gas production by 2040,” BP was quoted as saying by Emirates news agency WAM, Trade Arabia reported. The report suggested that non-fossil fuels account for 8% of the Middle East’s energy consumption in 2040, compared with 1% today. Natural gas represents almost 60% of the incremental energy demand growth, and it accounts for 54% of the region’s energy consumption by 2040, against 52% today.’’

‘’This rising prosperity drives an increase in global energy demand, although the extent of this growth is offset by accelerating gains in energy efficiency: Energy demand increases by only around one-third over the next 25 year,’’ the annual report noted. Based on the report, Middle East energy consumption will increase by 54% by 2040, with natural gas representing almost 60% of that growth. Oil and coal both lose share at the expense of gas and non-fossil fuels.

Moreover, the contribution of non-fossil fuels increases from the current 1% to 8% in 2040, led by strong growth in solar, wind (each over 20% per annum) and nuclear (15% p.a.). Still, by 2040, solar energy will represent only 4% of total energy demand.

Natural gas consumption is expected to grow by 2% per annum and oil consumption by 1.1% p.a., slightly faster than the global average of 1.6% p.a. and 0.5% p.a., respectively.

The BP Energy Outlook examines the forces shaping the global energy transition between now and 2040 as well as the key uncertainties surrounding that transition.

Rising prosperity is expected to drive an increase in global energy demand, with the report reviewing ways in which demand will be met over the coming decades through a diverse range of supplies, including oil, gas, coal and renewables.

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