Asia to drive 54% surge in energy demand: U.S.

Asia to drive 54% surge in energy demand: U.S.

Agence France-Presse, Washington

Growth in demand from countries such as China and India will boost global energy consumption by 54 percent by 2025, the United States forecast on Wednesday.

Total energy use is projected to grow to 623 quadrillion (623 million trillion) British thermal units in 2025 from 404 quadrillion in 2001, the Energy Information Administration (EIA) said.

"The fastest growth is projected for the nations of developing Asia, where robust economic growth accompanies the increase in energy consumption over the forecast period," the agency said in a statement.

"Gross domestic product in developing Asia is expected to expand at an average annual rate of 5.1 percent, compared with 3 percent per year for the world as a whole."

Kevin Kerr, editor of the investment newsletter Kwest Market Edge, said this week Chinese consumption was expected to soar.

The country now consumed 6.3 million barrels of oil a day, compared to daily U.S. consumption of 20 million barrels, he said. But Chinese consumption could match the United States in the next seven to 10 years, Kerr said.

By 2025, world oil prices would likely moderate to US$27 a barrel measured in 2002 dollars, and $51 a barrel in actual dollars, the EIA said.

Oil would remain the primary source of world energy through 2025, with demand projected to grow to 121 million barrels a day in 2025 from 77 million barrels a day in 2001.

Most of that demand growth was expected to come from the United States and developing Asia.

"The projected increment ... would require an increment to world productive capacity of more than 44 million barrels per day over current levels," the EIA said.

OPEC producers are expected to remain the primary provider of higher production, but oil from non-OPEC sources such as deepwater West African fields would play a significant role.

Natural gas was the fastest growing primary energy source, the EIA said.

From 2001 to 2025, natural gas consumption was expected to grow 67 percent, reaching 151 trillion cubic feet in 2025.