China's waking up to the need for cleaner energy generation, according to the new, data-packed report from the International Energy Agency ("IEA"), the 2017 World Energy Outlook. This focus on cleaner energy is a very good thing, given that consumers in Asia will account for 70% of global oil and gas imports by 2040. China's new "clean energy" policy and anti-pollution stance is the first of four forces highlighted by the IEA as major shifts in the world's energy system.
The other three forces transforming global energy markets are:
- The shale revolution will push US oil and gas exports to a level 50% higher than any other country has ever achieved:
- Renewables will become a cheaper form of power generation than gas in some countries by the mid-2020s.
- Electricity is growing its share of the energy mix. In fact, electricity makes up 40% of the rise in final energy consumption to 2040. That's the same share of growth that oil captured in the last twenty-five years.
Overall, energy demand slows to 1% per year through 2040, down from 8% annually from 2000-2012. However, in total, global energy demand grows 30% by 2040. Without new energy efficiency technologies, end-use consumption in 2040 would be 40% greater.
Oil is not dead. Oil use for passenger vehicles peaks during the forecast period, thanks to electric vehicles and fuel efficiency improvements. However, requirements from heavy truck fleets, aviation, and shipping will drive demand for oil up to 105 million barrels a day. In 2017, worldwide demand for oil was about 98 million barrels a day.
Once again, greenhouse gases ("GHGs") are in focus in the IEA's report. Projections for 2040 CO2 emissions are down 1.7% from prior year, but still not nearly enough to avoid the worst effects of climate change.
At Blutip, we are laser-focused on helping our mining customers increase fuel efficiency by 4-5%, while simultaneously reducing GHGs. Our SmartRFuel technology causes more combustion to occur in the engine chamber itself, burning fuel more efficiently and reducing CO2 accordingly.
Contact us today and we'll send you anonymized data from years of field results for companies such as Newmont, Anglo American, and Rio Tinto. If that data sparks your interest, we can discuss a risk-free deployment at your mine site. Because there's nothing more convincing than real results, on your trucks, with your drivers, in your field conditions.