BP Energy Outlook: Renewables will be largest source of energy by 2040

The 2019 edition of BP’s Energy Outlook, published yesterday, explores the key uncertainties that could impact the shape of global energy markets out to 2040.

The greatest uncertainties over the 20 year period involve the need for more energy to support continued global economic growth and rising prosperity, together with the need for a more rapid transition to a lower-carbon future, according to BP's 2019 Energy Outlook.

These scenarios highlight the dual challenge that the world is facing. The Outlook also considers a number of other issues including the possible impact of an escalation in trade disputes and the implications of a significant tightening in the regulation of plastics.

According to the Outlook, global energy demand will increase by around a third by 2040, driven by improvements in living standards, particularly in India, China and across Asia.

Energy consumed by industry and buildings accounts for around 75% of this increase in overall energy demand, while growth in energy demand from transport slows sharply relative to the past as gains in vehicle efficiency accelerate.

Around 85% of the growth in energy supply is generated through renewable energy and natural gas, with renewables becoming the largest source of global power generation by 2040.

Demand for oil grows in the first half of the Outlook period before gradually plateauing.

Check BP’s Energy Outlook – 2019 here.