EIA Reports

U.S. DEPARTMENT OF ENERGY
WASHINGTON DC 20585

FOR IMMEDIATE RELEASE
JUNE 20, 2006

Strong Growth in World Energy Demand is Projected Through 2030

Worldwide marketed energy consumption is projected to grow by 71 percent between 2003 and 2030, according to the reference case projection from the International Energy Outlook 2006 (IEO2006) released today by the Energy Information Administration (EIA). The IEO2006 shows the strongest energy consumption growth in developing countries outside the Organization for Economic Cooperation and Development (OECD), especially non-OECD Asia (including China and India), where robust economic growth drives the increase in energy use. Energy use in non-OECD Asia nearly triples over the projection period (Figure 1).

Projected reference case world oil prices are 35 percent higher in 2025 than in last year’s IEO, reflecting a more pessimistic view of the willingness of oil-rich countries to expand production capacity as aggressively as previously envisioned. The higher prices dampen expected growth in world oil demand, which is 8 million barrels per day lower in 2025 than in last year’s reference case. As a result, oil’s share of total energy use is projected to fall from 38 percent in 2003 to 33 percent in 2030, whereas natural gas and coal both gain in their share of total energy (Figure 2). Petroleum consumption is still expected to grow strongly, however, reaching 118 million barrels per day in 2030. The United States, China, and India together account for 51 percent of the projected growth in world oil use.

Members of the Organization of Petroleum Exporting Countries (OPEC) are expected to increase their supply of oil by 14.6 million barrels per day between 2003 and 2030. Higher oil prices contribute to a substantial increase in projected non-OPEC supply, which rises by 23.7 million barrels per day, including 8.1million barrels per day of unconventional production, over the same period. World unconventional production (including oil sands, bitumen, biofuels, coal-to-liquids, and gas-to-liquids) increases by 9.7 million barrels per day between 2003 and 2030, representing 25 percent of the total world liquids supply increase.

Other report highlights include:

Coal use grows at an average annual rate of 2.5 percent between 2003 and 2030 in the IEO2006 reference case projection, while demand for natural gas grows by 2.4 percent per year. The higher oil prices used in IEO2006 increase the competitiveness of these fuels. Rising fossil fuel prices also allow renewable energy sources to compete more effectively in the electric power sector. Consumption of hydroelectricity and other grid-connected renewable energy sources expands by 2.4 percent per year.

Higher fossil fuel prices and concerns about security of energy supplies are expected to improve prospects for nuclear power capacity over the projection period, and many countries are expected to build new nuclear power plants. World nuclear capacity is projected to rise from 361 gigawatts in 2003 to 438 gigawatts in 2030, with significant declines in capacity projected only for Europe, where several countries have either plans or mandates to phase out nuclear power, or where old reactors are expected to be retired and not replaced.

In the IEO2006 reference case, which does not include specific policies to limit greenhouse gas emissions, energy-related carbon dioxide emissions are projected to rise from 25.0 billion metric tons in 2003 to 33.7 billion metric tons in 2015 and 43.7 billion metric tons in 2030. Much of the projected increase in emissions is expected to occur in the non-OECD regions of the world, accompanying large increases fossil fuel use. Non-OECD countries accounts for three-fourths of the projected growth in emissions between 2003 and 2030 (Figure 3).

The full report can be found on EIA’s web site at:

http://www.eia.doe.gov/oiaf/ieo/index.html

The report described in this press release was prepared by the Energy Information Administration, the independent statistical and analytical agency within the U.S. Department of Energy. The information contained in the report and the press release should be attributed to the Energy Information Administration and should not be construed as advocating or reflecting any policy position of the Department of Energy or any other organization .

EIA Program Contacts: Linda Doman, 202/586-1041; Glen Sweetnam, 202/586-2188

EIA Press Contact: National Energy Information Center, 202/586-8800

EIA-2006-03

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