THURSDAY 13 NOVEMBER, 2008 |
IEA Report Favours Renewable Energy - Says Era Of Cheap Oil Over
The World Energy Outlook 2008 report released today by the
International Energy Agency
has painted a bleak picture for the future of
oil and is calling for a global low carbon and renewable
revolution in spite
of the current financial crisis.
While the IEA still believes that oil will be available in for the
the sources of oil and costs of producing it mean that " the era of cheap oil is
over” according to Nobuo Tanaka, Executive Director of the International
Energy Agency. In the report, the IEA predicts demand for
primary energy demand to grow by 1.6% per year on average between 2006 and 2030;
but with decline rates in oil production increasing significantly, from an
average of 6.7% today to 8.6% in 2030.
Tanaka also stated that energy supply and consumption current trends are
"patently unsustainable – environmentally, economically and
socially" and that they must be altered. A continued business-as-usual
approach would see many supply disruptions and price hikes and more ominously,
greenhouse-gas emissions that would eventually lead to a global temperature
increase of up to 6°C.” Energy-related carbon dioxide emissions are set to
increase by 45% between 2006 and 2030, reaching 41 gigatons.
The agency projects that the renewable energy sectors such as solar
will grow most rapidly, to overtake natural gas and become the second-largest source of electricity soon after
2010. The IEA estimates the low-carbon energy component in the global primary
energy mix will need to expand from 19% in 2006 to 26% by 2030; requiring $4.1
trillion more investment in energy-related infrastructure - equivalent to 0.2%
of annual world GDP.
More on the World Energy Outlook 2008 report
- Fact sheets
- Executive summary
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