Mothers of invention
Managing scarcity for the future
In this whitepaper, Deloitte Middle East explores several challenges facing the energy industry in the GCC. Although oil is still projected to remain the primary fuel, significant advancements in technology will cause natural gas to overtake coal as the number two fuel source.
Despite the increasing viability of renewable and alternative forms of energy, we cannot forget about oil and gas in a time when we are witnessing an unprecedented acceleration of energy demand. As alternative forms of energy increasingly make a case for long-term sustainable energy, the economic reality of today and the recent past dictates that oil and gas are still seen as the main sources of energy. As a result, we see that over the coming decades, demand and supply of oil and gas is forecast to continue to rise. Moreover, oil and gas will supply about 60 percent of global energy demand in 2040, up from 55 percent in 2010.
Energy sources are forecast to continue to evolve and diversify as global energy demand rises. Significant advancements in technology will cause natural gas to overtake coal as the number two fuel source. Indeed, we are already seeing a rapid rise in potential gas reserves through the shale gas revolution and most National Oil Companies (NOCs) in the Middle East have multi-billion dollar investment plans for gas exploration and production. Oil is still projected to remain the primary fuel. However, alternative sources such as nuclear, wind, solar and biofuel will take on an increasingly significant role in meeting the world’s energy needs in the future.