A recent report released by British Petroleum (BP) reveals natural gas as the world’s fastest growing traditional fuel. According to the Australian Petroleum Production and Exploration Association (APPEA) this suggests great opportunities for the Australian gas sector.
Besides the rise of natural gas as a traditional fuel, BP Energy Outlook: Transition to a lower carbon future also finds that by 2035, natural gas will be the second-largest fuel source, after oil (overtaking coal) and oil will grow steadily at 0.9 per cent a year, although its share of the energy mix will continue to decline.
The report’s release follows a visit to Australia by the International Energy Agency’s Executive Director, Dr Fatih Birol, who said Australia’s investments in LNG production would deliver long-term benefits.
“Australia made a very good move to be the champion of LNG around 2020,” Dr Birol said.
The Australian Petroleum Production & Exploration Association (APPEA) Chief Executive, Malcolm Roberts, said the report confirmed the key role of natural gas in the global energy mix and its growing importance in the low carbon economy of the future.
Mr Roberts said Australia was capitalising on the world’s growing appetite for cleaner-burning natural gas and was poised to become the world’s leading exporter of liquefied natural gas (LNG) as new projects entered production in the next few years.
“The projects will generate significant economic benefits for Australia through investment, jobs, increased income and additional taxation revenues over the coming decades.
“The oil and gas industry is vital for Australia,” Mr Roberts said.
Mr Roberts said natural gas is a safe, clean and reliable energy source for industry and millions of households, and is an irreplaceable feedstock for a range of industrial applications in the plastics and chemicals industries.
“Natural gas is integral to a low-carbon economy and increasing its use can deliver immediate and substantial carbon savings.
“Australia’s gas industry, domestically and through our LNG exports, contributes substantially to the economic development of the nation and reduces global greenhouse gas emissions.”
Read the full BP Energy Outlook here.