Wednesday, November 10, 2010

China Energy Use to Soar, Driving Demand for Coal, Oil & Clean Energy Alike


China's demand for energy will soar 75% by 2035, according to the latest world energy forecast from the International Energy Agency (IEA), released Tuesday. The growing economic aspirations of 1.3 billion Chinese, who today use just one-third the amount of energy consumed by an average European or North American, will put pressure on global energy markets, driving demand for both clean and dirty energy alike.

Oil prices will rise to $113 per barrel (in constant 2009 dollars) by 2035, as oil producers struggle to keep pace with soaring global demand, according the IEA, the world's global energy watchdog, based in Paris.

Oil markets will remain tight through much of this period, the agency expects, writing that "short‐term price volatility is likely to remain high."

Much of the pressure on global energy markets will come from China, which will account for more than one-third of all global energy demand growth over the next 25 years, according to the IEA.

“Chinese energy demand will grow by such huge terms it will put pressure on the global energy markets in terms of oil, coal and, to a lesser extent, natural gas,” said Faith Birol, the IEA's chief economist, speaking to the New York Times.

Read the full post exclusively at theEnergyCollective.com

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