Energy is important in every region of the world. Without it, many areas would not be able to function. Although the developed world has traditionally been the largest consumer of energy, the developing world is increasing their consumption as living standards rise and energy becomes more accessible.
Increase in Demand in Developing Countries
The developing world will soon be the main market for energy consumption. Most of the recent increase in the demand for energy has come from Asia, especially countries such as India and China. There, prosperity is increasing and people are becoming more accustomed to higher standards of living. Maintaining these standards of living requires more energy than ever before. The rate of energy consumed per individual has increased quickly.
After achieving sustainable economic growth, China is currently the largest market for energy. India, however, will likely surpass them as the largest growth market around 2025. At that point, India will account for more than 25% of the global energy demand over the outlook.
The African continent consists of many developing countries, but doesn’t consume much energy. In 2040, Africa will account for nearly a quarter of the world’s population. Despite this, it is projected to only account for 6% of global energy demand.
Global Shift in Production
Global energy demand isn’t the only shift we’re seeing. Energy production is also changing. US energy production is expected to keep increasing and stay the largest contributor to growth until the mid 2020s. The Middle East will likely retain its position as a key player in the energy industry. The region will continue to be supported by the growth of OPEC production, and will likely see gas production expansions in Iran and Qatar.
Globalization and development are playing a very important role in energy production around the world. Energy will continue to grow in importance. Patterns are shifting, however, as countries around the world become more developed. We’re going to see an increase in demand for energy in developing countries as living conditions improve. The developing world, especially countries in Asia, will become the main market for energy consumption. Energy demand won’t be the only shift in the energy market. Production patterns will also be changing as the US and the Middle East continue to grow in importance.