Most of this growth is expected to come predominantly from two sub sectors — heavy industry and chemicals. Energy demand in the chemical sector alone is expected to rise by about 50%, with most of the increase occurring in China, India and other key emerging countries.
The United States is also likely to see demand growth as its chemical industry expands to capture the benefit of rising shale gas and tight oil production, The Abdullah Bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development said.
The growth impact on demand in the chemical sector is two-fold, since chemical producers use oil and natural gas, both as fuel and as feedstock.
In keeping with energy-efficient trends in homes and cars, industries are striving to “make more with less” through new technologies and processes.
For example, the World Steel Association estimates it takes about 60% less energy to produce a tonne of crude steel today that it did in 1960.
According to the International Energy Agency (IEA), the energy intensity of producing cement will improve by 0.5% a year as optimisation and modified production processes continue to be more widely adopted.
Industrial efficiency has improved in all regions, The Abdullah Bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development said.
But the most dramatic change has been in China, where energy intensity of the industrial sector has improved markedly over the past 20 years.
Energy, particularly, the hydrocarbons, have played a key a crucial role in industrialisation since the beginning of the last century, The Abdullah Bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development points out.
“This trend will continue well into the future,” it said.
However, the sector will need to adapt rapidly to a changing business climate and continue to innovate and diversify.
“As we continue to move towards a world of collective green growth based on the appropriate mix for each country, developing countries as well as the very large energy consumers like the US, China, Japan and others need to have all sources available to them as part of their sustainable development strategies. This needs to be enhanced by technological developments and innovative approaches to address environmental and operational challenges,” The Abdullah Bin Hamad Al-Attiyah International Foundation for Energy and Sustainable Development said.
