According to International Energy Outlook 2013 (IEO2013) which was released today by the U.S. Energy Information Administration (EIA), world energy consumption is projected to increase by 56 percent over the next three decades!

This projected increase is mainly due to the growth of the developing world. EIA Administrator Adam Sieminski explains, "Rising prosperity in China and India is a major factor in the outlook for global energy demand. These two countries combined account for half the world's total increase in energy use through 2040. This will have a profound effect on the development of world energy markets."

IEO2013 presents updated projections for world energy markets through 2040. 

Some of the key findings include:

World energy consumption increases from 524 quadrillion British thermal units (Btu) in 2010 to 820 quadrillion Btu in 2040. Half of the total world increase in energy consumption is attributed to China and India.

IEO2013 projects increased world consumption of energy from all fuel sources through 2040. Fossil fuels are expected to continue supplying much of the energy used worldwide. 

Natural gas is the fastest growing fossil fuel in the outlook. Global natural gas consumption grows by 1.7 percent per year. Increasing supplies of tight gas, shale gas, and coalbed methane support growth in projected worldwide gas use. 

Other IEO2013 highlights:

- The Brent crude oil spot price averaged $112 per barrel in 2012, and EIA's July 2013 Short-Term Energy Outlook projects averages of $105 per barrel in 2013 and $100 per barrel in 2014. With prices expected to increase in the long term, however, the world oil price in real 2011 dollars reaches $106 per barrel in 2020 and $163 per barrel in 2040.

- Almost 80 percent of the projected increase in renewable electricity generation is fueled by hydropower and wind power. The contribution of wind energy, in particular, has grown rapidly over the past decade and this trend continues into the future. Of the 5.4 trillion kilowatt hours of new renewable generation added over the projection period, 52 percent is attributed to hydroelectric power and 28 percent to wind. 

- Electricity generation from nuclear power worldwide increases from 2.6 trillion kilowatt hours in 2010 to 5.5 trillion kilowatt hours in 2040, as concerns about energy security and greenhouse gas emissions support the development of new nuclear generating capacity.

Source: ENN