Imperial Oil Sees World Energy Demand Rising 1.7%/Y.

World energy demand will increase at an average of 1.7% a year between now and 2030, according to a forecast by Imperial Oil (IMO) - Canada's biggest integrated petroleum company and part of ExxonMobil group. At an investor conference in Calgary on Dec. 6, IMO Chairman and CEO Tim Hearn said world energy demand will rise to the equivalent of more than 330m b/d of oil in 2030 from the equivalent of about 200m b/d now. He said most of the incremental demand will come from China, India, the rest of Asia and Latin America, with North American energy demand continuing to rise.

Despite the recent run-up in energy prices, which Hearn attributed to simultaneous economic expansion in most world regions, IMO is not forecasting energy shortages or even oil shortages. As a result, Hearn sees a strong potential for oil prices to moderate in coming years.

"There are more than enough resources of all forms of energy to meet world demand", Hearn told the conference, adding: "All major energy forms will be needed. However, hydrocarbon-based energy will still account for 80% [of energy consumption] in 2030, and oil and [natural] gas will account for 60%".

Hearn said the world was not running short of hydrocarbon fuels, which include oil and natural gas. He estimated that the equivalent in total recoverable hydrocarbon resources of 12 trillion barrels of oil had yet to be tapped worldwide, compared with the equivalent of about 3 trillion barrels of oil already produced.

Among industrialised nations, Canada is unique in being the only country "with significant potential for growth in hydrocarbon production", by virtue of its big Alberta oil-sands resource, Hearn said.

Imperial's plans for participating in the exploitation of Canada's oil sands include phased development of a major new oil-sands mining venture, the Kearl Oil Sands Project. A proposal for this was recently filed with Canadian energy regulators.