US$20 trillion needed for energy

HOUSTON – More than US$20 trillion will need to be invested to meet worldwide energy demand by 2030, the head of the International Energy Agency said on Tuesday.

IEA Executive Director Claude Mandil said the agency’s projection has been increased by US$3 billion from previous estimates because of higher costs. “After 2010, investment will be the key driver” in determining how long current high energy prices persist, Mandil told attendees at the Deloitte Oil & Gas Conference in Houston.”Will (investment) be high enough?” More than half the US$20,2 trillion total, US$11,3 trillion, is needed to expand electric production to meet worldwide demand, Mandil said.An investment of US$4,3 trillion, or 21 per cent of the total, is needed to meet growing demand for crude oil; US$3,9 trillion is needed for natural gas exploration and production.Coal production will need investment of US$600 million and biofuels will require US$100 million, IEA said.”There is a strong need for investment in this scenario, but I’m not sure this investment will come,” Mandil said.Nampa-Reuters”After 2010, investment will be the key driver” in determining how long current high energy prices persist, Mandil told attendees at the Deloitte Oil & Gas Conference in Houston.”Will (investment) be high enough?” More than half the US$20,2 trillion total, US$11,3 trillion, is needed to expand electric production to meet worldwide demand, Mandil said.An investment of US$4,3 trillion, or 21 per cent of the total, is needed to meet growing demand for crude oil; US$3,9 trillion is needed for natural gas exploration and production.Coal production will need investment of US$600 million and biofuels will require US$100 million, IEA said.”There is a strong need for investment in this scenario, but I’m not sure this investment will come,” Mandil said.Nampa-Reuters