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Additional gas resources required to meet expected demand by 2030 - Rystad Energy

Economy Materials 5 October 2023 01:00 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, October 5. Global gas demand is projected to surge in the mid-2030s. Nevertheless, presently operational and emerging gas fields are anticipated to reach their production peak in the next few years before entering a decline phase, Trend reports.

As Rystad Energy, independent energy research and business intelligence company from Norway, said, even when considering all the fields yet to be officially approved and those currently in the exploration phase, achieving peak production remains distant even under ideal circumstances.

The company's analysis of various global warming scenarios indicates that an increase in gas exploration and production is imperative to align with temperature increases of 1.9 or 2.5 degrees Celsius. In all scenarios except for the 1.6-degree target, additional gas resources are required to meet the demand. Consequently, robust gas exploration efforts and increased capital investment within significant gas basins and gas-abundant nations become essential.

Unconventional gas sources will continue to be a prominent component of the global energy mix, projected to comprise approximately one-third by 2030, Rystad Energy forecasts. This expected growth in unconventional gas production is primarily driven by a decline in exploration success over the past decade and the scarcity of fully developed conventional gas projects, resulting in an overall reduction in conventional gas supply.

Currently, only 32 percent of the conventional gas reserves discovered since 2010 are actively producing, while over 50 percent await approval for development. Consequently, countries reliant on conventional gas sources must turn their attention to unconventional resources to meet net-zero targets and satisfy global demand unless they significantly increase their production investment.

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