World GDP spent on energy to be halved by 2050
BAKU, Azerbaijan, Sept.23
By Leman Zeynalova – Trend:
The proportion of world GDP spent on energy is roughly halved over the period till 2050 – from 3 percent to 1.6 percent, Trend reports citing Germany-based DNV GL.
Fossil energy expenditure represented more than 80 percent of world energy expenditure in 2018, but this will decline to 44 percent in 2050, with non-fossil expenditure accounting for 34 percent and grid expenditure 22 percent in 2050, said the company in its report.
DNV GL forecasts that over this period, fossil energy expenditure will decline from USD 3.2 trillion (trn) to USD 1.95trn in 2050.
Expenditure will be increasingly directed towards non-fossil energy, with this rising from USD 0.48trn in 2018 to USD 1.49trn in 2050, surpassing fossil fuel capex in the mid-2040s, according to the company.
“Alongside, grid costs to facilitate the energy transition will become a significant share of world energy expenditure, increasing from USD 0.4trn/yr in 2018 to USD 0.95trn/yr in 2050.
“Oil capex will lead a fall in upstream fossil-fuel expenditure, falling nine-fold from today to mid-century. Neither oil opex nor gas capex will decline by more than a quarter to 2050, while gas opex will remain stable.
“Capex in LNG will increase dramatically in the mid-2020s, with North America accounting for three fifths of the around USD 250 billion (bn) set to be invested in both 2024 and 2025 (Figure 2.16). The region will account for a similar proportion of the more than USD 170bn in 2027 and USD 140bn in 2028, before global investment falls to USD 60bn, a little higher than in 2018. Part of this is that the capex required to increase LNG liquefication capacity is much higher than to increase regasification capacity,” said the company.
Follow the author on Twitter: @Lyaman_Zeyn