Tighter environmental rules are pushing the world towards greater natural gas use, suggests new research.
The need to back up intermittent energy sources like wind and solar as well as a glut in supply means gas is expected to become the fuel of choice, according to year-ahead predictions from the global advisors Deloitte.
Meanwhile, the analysis predicts that ongoing civil unrest in Arab countries will continue to impact on the oil markets, such as in Libya where crude production fell from 1.6million barrels a day (b/d) to less than 100,000 b/d since February.
Graeme Sheils, oil and gas partner at Deloitte said: “According to some estimates, this has seen global markets lose as much as 145 million barrels of Libyan oil and led to triple digit prices for both Brent and West Texas Intermediate (WTI). With production not expected to recover to pre-crisis levels until 2015 the effects of this will continue to be felt for some time.”
The researchers found that a “scavenger hunt” was ongoing for oil and gas as firms rush to meet a rise in demand around the world.