IEA urged the world to change its policy direction

Without a bold change of policy direction, the world will lock itself into an insecure, inefficient and high-carbon energy system, the International Energy Agency warned in its latest World Energy Outlook (WEO) released on 9-Nov-2011.

“There is still time to act, but the window of opportunity is closing.”
"Governments need to introduce stronger measures to drive investment in efficient and low-carbon technologies. The Fukushima nuclear accident, the turmoil in parts of the Middle East and North Africa and a sharp rebound in energy demand in 2010 which pushed CO2 emissions to a record high, highlight the urgency and the scale of the challenge," the IEA noted in its WEO.

Primary energy demand increases by one-third between 2010 and 2035, with 90% of the growth in non-OECD economies. China consolidates its position as the world’s largest energy consumer: it consumes nearly 70% more energy than the US by 2035, even though, by then, per capita demand in China is still less than half the level in the US, according to the WEO's central new policies scenario.

The IEA reported that the future for natural gas is more certain as its share in the energy mix rises and gas use almost catches up with coal consumption.

One country set to benefit from increased demand for gas is Russia. However, key challenges for Russia are to finance a new generation of higher-cost oil and gas fields and to improve its energy efficiency. While Russia remains an important supplier to its traditional markets in Europe, a shift in its fossil fuel exports towards China and the Asia-Pacific gathers momentum.

If Russia improved its energy efficiency to the levels of comparable OECD countries, it could reduce its primary energy use by almost one-third, an amount similar to the consumption of the UK. Potential savings of natural gas alone, at 180 BCM/Y, are close to Russia's net exports in 2010, the IEA remarked.