The International Energy Agency (IEA) has released its 2012 World Energy Outlook, concluding that the global energy map is changing in a ‘dramatic fashion’ and that changes will recast expectations about the role of different countries, regions and fuels in the global energy system over the coming decades.

 

“North America is at the forefront of a sweeping transformation in oil and gas production that will affect all regions of the world, yet the potential also exists for a similarly transformative shift in global energy efficiency,” IEA’s Executive Director Maria van der Hoeven said.

 

“This year’s World Energy Outlook shows that by 2035, we can achieve energy savings equivalent to nearly a fifth of global demand in 2010. In other words, energy efficiency is just as important as unconstrained energy supply, and increased action on efficiency can serve as a unifying energy policy that brings multiple benefits.”

 

The Outlook concluded that massive shifts in energy production will see the United States become a net exporter of energy by 2020 and is on course to become self-sufficient in energy by 2035.

 

The IEA also predicts a massive shift in Middle East energy exporting, with 90 per cent of Middle Eastern oil exports being drawn to Asia by 2035.

 

The report also found that fossil fuels will remain the dominant force in the global energy mix thanks to $523 billion in subsidies, thanks to the increases in Middle East and North African production.

 

Federal Minister for Resources and Energy, Martin Ferguson, welcomed the release of the annual publication, which he says validates much of the content in last week’s Energy White Paper.

 

The 2012 edition identifies major shifts in our global energy system including the unexpected rise of unconventional oil and gas, the scaling back of nuclear, and the United States preparing to overtake Saudi Arabia as the world’s largest oil producer by 2020,” Mr Ferguson said.

 

“As a result, the interaction between different energy sources, markets and prices is intensifying and it is important that Australia continues to be well positioned to respond to the opportunities and challenges that may lie ahead.

 

“This is what the Energy White Paper I released last week seeks to do. To ensure Australia has the right energy policy settings in place, to be responsive to change – not only in international markets – but also domestically.

 

The full Outlook can be found here