The simple reason why we see such huge investments in oil and gas as seen in the above headlines is because we know that the world will need even more of them. In particular, the still developing world is looking at the oil and gas consuming West to see how affordable and reliable energy can grow economies and improve human development.
And why not?
Any newborn or even 16-year old girl, for instance, living in the oil- and gas-dominated West today has never had it better – never being more educated, never making more money, never being healthier, never living longer. We truly have the lives our ancestors never could’ve dreamed of just a century ago.
The main reason for the following graphic is that oil is the world’s most vital fuel and has no significant substitute whatsoever. Oil is the basis of globalization, utilized in practically everything that we do, and the most internationally traded commodity in the world. Oil’s value is so immense that too high of a price can cause a global economic recession.
Indeed, “BP’s ‘Peak Oil’ Demand Prediction Falls Flat.”
U.S. oil demand will remain extremely high, with global demand booming.
Data source: EIA’s IEO 2019; JTC
Next comes the world’s go-to fuel: natural gas.
Just last year alone, global gas demand jumped over 5% to a staggering 137 trillion cubic feet.
That’s a Marcellus’ shale worth of production devoured every three weeks.
The main reason for the following graphic is that natural gas is a clean, reliable, and flexible fuel to backup wind and solar power when there’s no wind or sun – and that’s more frequent that you’re being told. No wonder then that U.S. gas generation capacity is set to explode nearly 70% to 755,000 MW by 2050.
Globally, even with Herculean gains for wind (a 4-fold boom) and solar (more than a 6-fold boom), gas generation soars nearly 60% by 2050.
Indeed, “How ‘Climate Week’ Completely Missed The Boat On Natural Gas.”
