U.S. EIA’s 2017 Outlook Forecasts Strong Growth for Natural Gas

| USA, Washington DC

US EIA Energy Outlook 2017The U.S. Energy Information Administration (EIA) has published its International Energy Outlook 2017, an assessment of the outlook for international energy markets through 2050. Natural gas as a transportation fuel occupies a significant place in EIA’s comments.

Amongst its conclusions, the EIA says natural gas driven by favourable economics in heavy trucking is expected to be one of the fastest-growing forms of energy used for transportation in OECD countries on a percentage basis.

US EIA Energy Outlook fuel consumption 2015 cf 2040

Source: US EIA

“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 considered to be highly competitive as an energy source. 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 Executive Summary and Full Report are available for download at www.eia.gov/outlooks/ieo/ The Executive Summary and Full Report are available for download at www.eia.gov/outlooks/ieo/


Source: U.S. Energy Information Administration

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