The International Energy Agency, IEA, has warned that oil markets are entering a period of renewed uncertainty and volatility, including a possible supply gap in the early 2020s.
The agency observed that demand for natural gas is on the rise erasing talk of a glut, as China turns into a giant consumer, while Solar PV is surging ahead, but other low-carbon technologies and especially efficiency policies still require a big push.
These facts came to light in the IEA publication World Energy Outlook 2018, which detailed global energy trends and what possible impact they would have on supply and demand, carbon emissions, air pollution and energy access.
Major transformations were underway for the global energy sector, from growing electrification to the expansion of renewables, upheavals in oil production and globalisation of natural gas markets.
Across all regions and fuels, policy choices made by governments would determine the shape of the energy system of the future.
At a time when geopolitical factors were exerting new and complex influences on energy markets, underscoring the critical importance of energy security, the World Energy Outlook’s scenario-based analysis outlines different possible futures for the energy system across all fuels and technologies.
It offers a contrast with different pathways, based on current and planned policies, and those that can meet long term climate goals under the Paris Climate Change Agreement, reducing air pollution and ensuring universal energy access.
While the geography of energy consumption continues its historic shift to Asia, the World Energy Outlook finds mixed signals on the pace and direction of change.
In all cases, governments would have a critical influence in the direction of the future energy system