Supply & Demand

Is the IEA underestimating the potential of gas?

IEA analysis suggests gas consumption will increase by 50% by 2040. But is this based on a view of renewable energy’s potential that is too optimistic? IEA analysis suggests gas consumption will increase by 50% by 2040. But is this based on a view of renewable energy’s potential that is too optimistic?
By Peter Stewart 18 November 2015 0 24333
The International Energy Agency’s latest World Energy Outlook suggests gas consumption will increase by 50% by 2040. (OMV)

The latest World Energy Outlook (WEO) by the International Energy Agency (IEA) is important for two reasons. First, it is the IEA’s first full analysis of the impact of lower fossil fuel prices on the global energy market. Second, it is being published just weeks before the UN COP21 climate summit in Paris, where states will attempt to thrash out a deal to reduce carbon emissions and mitigate the impact of climate change.

The WEO is published annually, and its forecasts extend to 2040. It paints a familiar picture of...