IEA report says oil and gas outlook uncertain
The report from the International Energy Agency - Medium Term Oil and Gas Markets 2010 - shows a continued imbalance between the OECD and nono-OECD markets.
According to the IEA's Executive Director, Nobuo Tanaka, there continues to be strong growth in China, India and the Middle East, while demand elsewhere is weak or flat - particularly in Europe.
This imbalance makes medium-term predictions difficult, however Tanaka claimed that the report shows a clear need for increased investment in the oil and natural gas industries, a greater focus on energy efficiency and a requirement for better data.
The report offers two potential demand scenarios for the next five years. The first is based on GDP growth of around 4.5% per year from 2010 onwards with a reduction in oil use intensity of 3%. The other is based on 3% GDP growth but slower reductions in intensity.
In both cases, non-OECD countries show the biggest growth in oil demand, much of it being driven by the transport sector. China is also seen as the main driver of natural gas demand.
