Advances in technology will keep energy supplies plentiful and affordable.
That’s according to a new report by energy giant BP.
It found using the best technologies to discover oil and gas resources could significantly increase ‘proved reserves’ from 2.9 trillion barrels of oil equivalent to 4.8 trillion barrels.
That’s nearly double the 2.5 trillion barrels required to meet projected global demand until 2050.
It adds there is enough energy to meet projected demand “many times over” and help pave the way to a lower carbon energy mix.
The report also predicts wind and solar will continue cutting costs at around 14% and 24% per doubling in installed capacity and become more competitive overtime.
In North America modern combined-cycle gas turbine power plants would have a cost advantage compared to coal today if policy makers “were to adopt a modest price on Carbon Dioxide of less than $40 (£26) per tonne,” it claims.
By 2050 a Carbon Dioxide price of $80 (£52) per tonne would make “onshore wind technology competitive with gas-fired power” and utility-scale solar power “close to being competitive”.
It adds: “This price on carbon would also make carbon capture and sequestration with gas-fired power economic.”
Bob Dudley, BP Group Chief Executive, said: “Technology opens up a whole range of possibilities across the energy sector.
“It can bring great value to consumers and businesses and it can also disrupt and challenge existing models.
“Today, for the first time, we are sharing our analysis of energy technologies and the options they present society in the quest for an abundant, sustainable and lower carbon energy future.”