ExxonMobil recently released its annual Energy Outlook 2025 which projects a significant increase in global demand for natural gas over the next quarter-century. According to the outlook, natural gas use is expected to rise more than 20% by 2050 compared to last year's levels. The LNG market projected to double by 2050 as global gas demand grows.
This growth is primarily driven by developing nations as they transition from coal to natural gas to power industries and meet increasing electricity needs.
Exxon’s outlook suggests that global oil demand will level off after 2030 but will remain above 100 million barrels per day through 2050.
By then, oil and natural gas are still expected to make up a substantial portion of the global energy supply, accounting for 55% of the total energy mix. This is only a slight decrease from the 56% they represent today.
While overall crude oil demand remains stable, the report forecasts a 25% drop in gasoline demand due to the growing number of electric vehicles. At the same time, demand for distillates used in commercial transportation and aviation is expected to remain high. This will require refineries to adapt their operations to the changing market.
Exxon showed that developing countries are projected to use 25% more energy as living standards improve. In 2050, more people and growing economies will drive higher demand for the energy sources that enable modern living, even as efficiency gains enable per capita energy use to decline in developed economies.
To support this, all energy types will be needed, Exxon said. but they add that sustained oil and gas investment is now more important than ever.
Exxon continue to make significant investments in the southern Caribbean, in particular in Guyana and more recently in Trinidad and Tobago with the acquisition of a large deepwater block UD-1 and signed a production sharing contract that commits them to drilling two wells in the block. At present Exxon produces in excess of 650,000 barrels of oil per day in Guyana. The current crude oil production in T&T is just over 50,000 barrels of oil per day - which the country hopes to improve if Exxon is successful in the new block.