'Oil era is far from over,' says IEA's annual report

'Oil era is far from over,' says IEA's annual report

In its report presented in London on Tuesday, the agency says global demand for crude continues to grow in the next two and a half decades, although at a steadily increasing pace.

"It's quite spectacular, because you're going to see the number of cars on the road double from one billion to 2 billion, thanks to electric vehicles and fuel economy standards", said Laura Cozzi, head of the Energy Demand Outlook division.

Under the IEA's New Policies Scenario, based on existing legislation and announced policy intentions relative to emissions and climate change, the oil price should continue to rise toward $83 a barrel by the mid-2020s.

"Over the same period, United States gas companies ramped up their exports to Canada and Mexico, pushing net U.S. imports of pipeline gas down to around 25 bcm in 2016, compared with 80 bcm some ten years earlier", IEA economists said.

Traders said they were cautious about betting on further price rises. "We project a continuation of these trends: imports from Canada keep falling..."

"Asia's growing gas import requirements are largely met by LNG (by 2040), with exports from the U.S. accelerating a shift towards a more flexible, liquid global market", the IEA said.

" Electric vehicles are in the fast lane as a result of government support and declining battery costs, but it is far too early to write the obituary of oil, as growth for trucks, aviation, petrochemicals, shipping and aviation keeps pushing demand higher", says Fatih Birol, executive director, IEA.

Sudanese President Omar Bashir visits
KAMPALA, Uganda, November 13, 2017-President Omar Al-Bashir of Sudan, will pay a State Visit to Uganda from November 14-15, 2017. Now, the Sudanese government has designated Tarco airline to fly to Entebbe, easing flights between Uganda and Sudan.

Global energy needs will rise more slowly than in the past but still expand by 30 per cent between today and 2040, the equivalent of adding another China and India.

"Canada is well placed to export oil to China, although this is dependent on the construction of additional export capacity to bring inland production to the Pacific coast", the IEA said.

The price of oil has risen more than 30% since June to a two-year high of around $57 a barrel in NY trading amid evidence of stronger economic growth around the world.

The largest contribution to demand growth - nearly 30 per cent -would come from India, whose share of global energy would rise to 11 per cent by 2040, it says.

In fact, the monthly report published by IEA on Tuesday would back that theory up as it lowered its crude demand forecast for the whole of 2017 and 2018, by 50,000 bbl/day and 190,000 bbl/day respectively.

After hitting a 10-year low of less than $30 in January, down from a peak of more than $100 in mid-2014, oil prices have recently been hovering around the $55 mark.

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