International Energy Agency (IEA) has released the 2015 edition of its flagship World Energy Outlook publication (WEO-2015) which indicated that an extended period of lower oil prices would benefit consumers but would trigger energy-security concerns.
Major Points of Report
India – Oil demand is expected to ↑ by 10m barrels per day (bpd). It is also forecast to become the world’s largest coal importer in 5 years.
- India is also expected to rely on solar and wind power to have a 40% share of non-fossil fuel capacity by 2030.
China – Its total energy demand is set to nearly double that of the US by 2040. But a structural shift in the Asian country away from investment-led growth to domestic-demand based economy will.
- It indicates that 85% less energy is required to generate each unit of future economic growth in comparison with past 25 years.
United States – Its shale oil production is expected to stumble in the short term, but rise as oil price recovers. IEA does not expect crude oil to reach $80 a barrel until 2020, under its “central scenario”.
- If prices out to 2020 remain under $60 per barrel then production will decline
Renewables – These are set to overtake coal to become the largest source of power by 2030.
- The share of coal in the production of electricity will fall from 41% to 30% by 2040.
Climate goal – Growth in energy-related emissions slows dramatically but the emissions trajectory implies a long-term temperature increase of 2.7 °C by 2100.
- A major course correction is still required to achieve the world’s agreed climate goal.
About International Energy Agency (IEA)
IEA is a autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development (OECD) in 1974 in the wake of the 1973 oil crisis and also works on “3Es” of effectual energy policy: energy security, economic development, and environmental protection.
- Membership – 29 member states
- Secretariat – Paris, France
- Executive Director – Fatih Birol