Energy, The Lifeblood of Modern Economics
For people around the world reliable energy improves billion of people’s lives. For advanced societies reliable energy fuels the technologies and services that improve lives. Energy powers everything from transportation, communication, medical care, computers, industry, agriculture, and trade. For these reasons energy is the most important issue facing the world today. Meeting the growing demand!
The benefits of energy are too long to list. To get a complete picture we must count the energy demanded by public services, private enterprise and societies other needs. An example of indirect consumption includes energy required to run retail shops, office buildings, schools, hospitals, commercial transportation (airlines, trucking, railroads) and the manufacturing industry, steel & chemical industries. Everyone around the world benefits from energy usage, and higher living standards brought forth through economic growth.
The average North American consumes double the energy footprint of it’s nearest competitor Russia. In direct energy usage is about two thirds of the total world energy consumption. As we try and solve these challenges, we must consider the total energy picture.
One of the biggest challenges facing the world today is how to meet the worlds energy needs reliably and affordably even as world demand grows by leaps and bounds.
By meeting these challenges we seek to revitalize the US economy who suffers the most from this energy crisis. More and more energy is being found in difficult or hard to reach places. The global energy industry will be required to grow to meet these challenges. All this must be achieved by minimizing the risk to our environment and ensure air quality safety for future generations. That includes sulfur and carbon reduction.
Gaining access to inexpensive clean energy will bring a improved future for us all and help us to eradicate poverty. The world’s population is expected to rise from 6.7 billion today to almost 8 billion by 2030. Rising populations create much greater demand for energy for indirect and personal needs. Genoil expects energy demand to rise at a rate of 1.2% per year to 2030.
In non OECD countries, rapid economic growth is expected to bring a gigantic growth in energy demand. By contrast OECD countries demand is expected to be slightly lower in 2030 than it is today. This is surprising considering the economic growth forecast is expected around 50% by this time.
Due to the use of new energy saving technologies the energy it took to produce one GDP unit fell by over 22% from 1980 to 2000. As a result of higher energy costs, energy per GDP unit will continue a more rapid decline. This will save a tremendous amount of energy. Without this world energy demand could grow up to 95 percent by 2030.
Power generation is the largest energy demand sector followed by industrial demand, transportation, and lastly commercial/residential demand. The power generation sector will account for 40% of total primary energy demand by 2030. It’s largest energy source will be coal which is very high in carbon emissions.
Transportation is the fastest growing energy sector. It is the most heavily dependent on oil. Globally 98 percent of transportation runs on oil. By 2030 it is estimated that heavy duty vehicles will have become the largest transportation demand segment. In OECD countries personal transportation is expected to drop 25% by 2030, while doubling in non-OECD countries. It is anticipated that demand from China and India will overtake the developed nations as the largest source of commercial transportation demand.
To accurately estimate future transportation demand we must take into consideration the vehicle saturation rates. In the USA it’s as high as 80% the highest in the world. Europe has a much lower level of vehicles per capita. In other areas such as China, rising incomes are resulting in rapid vehicle saturation growth. But it is forecasted that by 2030, China’s vehicle saturation per capita rate will be almost 1/10th the level of the United States with about 8 vehicles per 100 persons.
The global vehicle market is expected to change through the coming years. Traditional gasoline driven vehicles will continue to make up a majority of the market, followed by diesels, but Hybrids and other advanced vehicles will grow rapidly eventually constituting 15% market penetration compared with 1% today.
It is estimated that by 2030 total crude oil demand will reach 104 Million barrels per day, a 25 % increase from today. Meeting this demand in an economic and environmentally friendly way is the number one priority at Genoil.