In his speech at the World Gas Conference in Paris, France, John Watson, Chairman and CEO of Chevron, called for the use of all forms of energy to meet global demand.
“The world is going to need all forms of energy if we are to meet global demand – oil, coal, gas, renewables… Global energy demand will increase 40% by 2035 as incomes increase and the middle class expands,” Watson noted.
A larger middle class will results in greater demand for energy in the home, as well as the business and manufacturing sectors.
LNG in the energy mix
Natural gas and LNG will be essential to the energy mix, Watson continued. While natural gas as part of Chevron’s portfolio is growing significantly, the challenge is where new supplies will come from in order to meet the rising demand.
He noted the “tremendous growth in natural gas in the United States due to shale”, adding that it will not be long before this excess gas is exported from the US as LNG.
US shale success story
The success of the shale market in the US, according to Watson, is in large part due to the regulatory system, which has facilitated the growth of the industry and transformed the US into an energy superpower.
Given the significant global natural gas reserves, Watson argued that opportunities for development are multiple, however not all countries can or choose to develop supplies. Many will therefore rely on LNG imports.
Edited from speech by Katie Woodward
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