Gas to overtake oil as world’s primary energy source, say DNV GL

Natural gas is flared.
Natural gas is flared at the Handy Gas Unit #1, a Pioneer Natural Resources well, in Karnes County, Texas, U.S., on Tuesday, June 22, 2010. Photographer: Eddie Seal/Bloomberg

A majority of energy firms expect to see “increased investment” in gas over future oil exploration, a survey by a technical advisory company to the to the sector revealed today.

The survey by DNV GL found that 64% of oil and gas sector leaders said that they “expect to increase or sustain” spending on gas projects this year as the industry as a whole looks to prioritise gas energy sources over traditional oil.

A further 86% of the 813 senior industry respondents surveyed said they expect gas, such as natural gas, to “play and increasingly important role” in the energy mix, up from 77% last year.

The Transition in Motion report findings show the oil and gas industry future outlook and seeks to identify the primary drivers for investment within the global energy transition.

Liv Hovem, CEO, DNV GL – Oil & Gas, said: “Society’s transition to a less carbon-intensive energy mix is already a reality, and oil and gas will continue to be crucial components.

“Our research affirms that the industry is already taking positive steps to secure the important role we forecast gas to play in helping to meet future, lower-carbon energy requirements.”

Significantly, 72% of respondents believe that, as traditional coal energy generation becomes obsolete over the coming decades, the long-term attractiveness of gas will significantly improve.

Ms Hovem added: “Significant investment will be needed in the gas industry over the coming decades to increase capacity, transform assets to source and transport a decarbonized mix of energies, and to safely build and maintain the infrastructure needed to connect emerging supply regions with evolving demand centres.”

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