Global energy demand to surge

November 08, 2005|Associated Press

THE HAGUE -- Global energy needs will surge 50 percent by 2030 and prices will rise if capacity is not significantly increased, the International Energy Agency said yesterday in its 2005 World Energy Outlook.

There are sufficient oil and natural gas reserves to meet those needs, particularly in North Africa and the Middle East, but about $20 trillion in new investments is urgently needed to bring those supplies to the consumer market, the agency said.

New energy sources will increasingly be needed to meet demand in growing nations like China and India.

Energy-related carbon dioxide emissions will also climb, by 52 percent in the same period, the Paris-based agency predicted.

''These projected trends have important implications and lead to a future that is not sustainable from an energy, security, or environmental perspective," said Claude Mandil, IEA executive director. ''We must change these outcomes and get the planet onto a sustainable energy path."

Oil prices are seen easing as more production facilities come online, to $35 a barrel by 2010. But the IEA raised its long-term projection for 2030 to $39 a barrel, from $29 in its 2004 report.

Oil and coal demand will grow by 1.4 percent per year, with natural gas needs increasing 2.1 percent annually, it said.