Clean energy likely to replace fossil fuels by 2040, report says

Natural gas is expected to see demand grow.
Natural gas is expected to see demand grow. | File photo

Despite surging crude oil prices, the global oil and gas industry is preparing for eventual declining demand for fossil fuels, according to a recent Forbes magazine report.

The report, submitted by Mitsubishi Heavy Industries, predicted that over the next 20 years, as governments move to limit carbon emissions, greener energy sources will replace coal and other fossil fuels. However, natural gas is expected to see demand grow “as a backup to renewables that generate power only intermittently,” according to the article. By 2040, natural gas could become a leading energy source.

“It’s not all bad news for oil, though: economic growth will see billions of people enter the middle classes in the coming decade, and increased demand for consumer goods will boost demand for petrochemicals,” the report stated.

Three key trends are likely to drive energy demand, according to the report: higher demand for electronic vehicles, the emergence of new business models for oil for fossil fuel companies, and improved storage and distribution strategies.

The full Mitsubishi Heavy Industries report can be downloaded here.

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Mitsubishi Heavy Industries, LTD.

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