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World needs extra $1.3 trln energy investment by 2030 - JP Morgan

Commodities Apr 20, 2022 07:19PM ET
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© Reuters. FILE PHOTO: Power-generating windmill turbines are pictured at a wind park in Bac Lieu province, Vietnam, July 8, 2017. REUTERS/Kham/File Photo

LONDON (Reuters) - The world needs to find $1.3 trillion of incremental investment by 2030 to boost all types of energy output and infrastructure from renewables to oil and gas to avoid an energy crunch, U.S. bank JP Morgan said in its first annual energy outlook.

"Our main finding is that by 2030, energy demand growth will exceed supply growth by circa 20% based on current trends, primarily driven by emerging economies and their efforts to develop and lift their citizens out of poverty," strategists Marko Kolanovic and Christyan Malek said.

Investment will need to be inclusive of all fuels, including oil and gas, renewables and nuclear, with oil demand alone expected to grow by around 10% by 2030 and gas by 18%.

"Not all fuels are made equal, and for the most part (and within this time horizon), different sources of energy are not fully fungible - solar panels cannot replace oil, needed for example in the industrial production of petrochemicals," said the outlook, to which 30 JP Morgan analysts contributed.

The research contrasts with the message from the International Energy Agency (IEA), which last year said no new investment was needed in fossil fuels.

The IEA has since then clarified that its outlook was only one of the suggested scenarios and called on OPEC to pump more oil.

"On a very long scale, all of the current sources of energy will be viewed as transitional to a safer, cleaner, and cheaper source of energy. Long term, this might only be provided by nuclear fusion," the JP Morgan outlook said.

"Until scalable, reliable, clean and affordable technologies are available, the world will need to work with all of the current sources of energy - fossil and non-fossil - and their respective drawbacks," it said.

It said global end-use spending on energy was set to rise to 9.5% of GDP in 2022 from a 2015-2019 average of 8.4%.

A further increase in energy costs would pose a greater probability of societal unrest and a slowdown in the energy transition, JP Morgan said.

World needs extra $1.3 trln energy investment by 2030 - JP Morgan
 

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Comments (2)
Kelly Mayer
Kelly Mayer Apr 20, 2022 8:45PM ET
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Ban Russian Uranium.
Elison Rios
Elison Rios Apr 20, 2022 8:31AM ET
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Solar is cheaper than coal now it but I think that we could increase investment in that area if the residential sector where to built house with solar panels and also make a work schedule less car dependent that way oil drops and other countries can benefit from the price drop.
Stephen Fa
Stephen Fa Apr 20, 2022 8:31AM ET
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You're misinformed on the true economic cost of reliable solar.
Jeff Kenkel
Jeff Kenkel Apr 20, 2022 8:31AM ET
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Idiot
Jeff Kenkel
Jeff Kenkel Apr 20, 2022 8:31AM ET
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Moron
Jeff Kenkel
Jeff Kenkel Apr 20, 2022 8:31AM ET
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Dunbass
Thomas Bjerre Kristiansen
Thomas Bjerre Kristiansen Apr 20, 2022 8:31AM ET
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The utility scale is now cheaper than coal, hence this is where the money should go was this up to me
 
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