In a new report from Shell, the demand for liquefied natural gas (LNG) in the coming years is introduced as one of the main drivers of global energy. Emphasizing ongoing projects in Qatar and the United States, Shell predicts that by the end of the decade, LNG production will reach about 550 million tons per year.
Shell's Scenarios for the Future of Energy
The company has presented three different scenarios for modeling long-term energy security. The first scenario, named 'Surge', refers to the widespread use of artificial intelligence, which could significantly increase efficiency and drive energy demand. The second scenario, 'Archipelagos', highlights various countries focusing on their own interests instead of cooperating for the development of renewable energies. Finally, the 'Horizon' scenario assumes achieving zero CO2 emissions by 2050, indicating a global average temperature below 1.5 degrees Celsius by the end of the century.
In all these scenarios, significant growth for LNG is predicted in the short term. In the 'Surge' scenario, LNG demand will reach 700 million tons per year by 2040. In contrast, the 'Horizon' scenario indicates peak demand in the early 2030s.
Outlook for Oil and Natural Gas
Shell also points to the growth of natural gas by 2045 in the 'Surge' scenario, while this demand in the 'Horizon' scenario, in the effort to achieve zero emissions, will soon reach its peak. Overall, Shell predicts that primary energy demand in 2050 will be nearly a quarter higher than in 2024.
Given these predictions, Shell is set to release its LNG-focused outlook later this year. Considering existing trends, it seems that the energy industry is moving towards significant transformations.
