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IEA: Demand for energy services will continue to grow

2025-12-02View Original

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  According to Sinochem New Network, recently the International Energy Agency (IEA) released its \"World Energy Outlook 2025\" report, emphasizing that in the coming decades, global demand for energy services, particularly electricity, will continue to rise. At the same time, the energy required to support data and artificial intelligence-related services will also increase significantly.   The IEA states that electricity is the lifeblood of modern industry and the digital economy. In the foreseeable future, the growth rate of global electricity demand will be much higher than that of total energy consumption. This is already evident in current global energy investment, with investments in power supply and end-use electrification accounting for 50% of the total global energy investment.   The IEA’s analyses over the years have consistently highlighted the growing importance of electricity in the global economy. Fatih Birol, the IEA director-general, noted that, unlike the trend over the past 10 years, growth in electricity consumption is no longer limited to emerging and developing economies. The rapid increase in power demand driven by data centers and artificial intelligence has also significantly raised electricity consumption in the world’s developed economies. Global investment in data centers is expected to reach $580 billion by 2025, surpassing the $540 billion invested in global oil supplies, reflecting a profound transformation in the global economic landscape.   It is worth noting that the report predicts that oil and gas will continue to play an important role in the future evolution of energy. Under the current policy conditions, demand for oil and gas is not expected to peak until 2050, and oil will remain the primary fuel. As the demand for oil and gas in developed economies slows down, emerging economies such as India and Southeast Asia, along with developing countries in the Middle East, Africa, and Latin America, will account for the majority of the future growth in global oil and gas demand, and may gradually reshape the structure of the international energy market.   The report predicts that global oil and gas supply will remain ample in the short term, with oil prices staying stable in the range of $60 to $65. As new liquefied natural gas export projects come online, the imbalance between supply and demand in the natural gas market is also expected to ease. However, the current balance in the international oil and gas market remains vulnerable to geopolitical risks; if global energy transition policies slow down or falling oil and gas prices stimulate demand growth, the existing buffer space may shrink rapidly.   The report indicates that there will be an increase in new liquefied natural gas projects worldwide by 2025. By 2030, it is expected that new liquefied natural gas export facilities with an annual production capacity of around 300 billion cubic meters will come online, resulting in a 50% increase in the global supply of liquefied natural gas. Although natural gas demand is expected to grow, such a significant increase in liquefied natural gas production capacity could lead to an oversupply in the market.   The report points out that, amid changes in the international energy market and turmoil in the international political landscape, in addition to traditional energy security risks such as oil and gas supply, vulnerabilities in other key mineral resource sectors are particularly prominent.

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