Gas spending will exceed $1 trillion over the next decade

Gas spending will exceed $1 trillion over the next decade

In a recent analysis of data published by Norwegian energy consultancy Rystad, climate campaign group Global Witness said that gas spending will exceed $1 trillion over the next decade, driven by European gas demand.

According to analysis by Global Witness, the oil and gas industry is expected to invest $223 billion in European gas supplies by 2033. Europe's gas demand may be in structural decline, but Europe needs other sources of supply to replace pipeline gas, which will be the main source of gas in Europe until 2022. In the wake of the geopolitical conflict, Europe has turned to liquefied natural gas (LNG) and increased pipeline gas supplies from Norway and Africa to meet demand.

"While climate and energy experts warn that any new fossil fuel production will raise global temperatures by more than 1.5 degrees Celsius, $223 billion of this trillion dollar total investment will be used to develop and operate new gas extraction projects to supply Europe," Global Witness said.

Exxonmobil, Shell, Total Energy, Equinor (Statoil) and Eni will be the biggest investors in the money. According to data published by Global Witness, the five companies will invest a total of $144 billion in European gas supply over the next decade.

Dominic Eagleton, senior fossil fuel campaigner at Global Witness, said: "These figures show that Europe, by doubling down on gas, is hurling down a dangerous path and needs to pull out all the stops to end the fossil fuel era. "The European Commission must seize the opportunity to accelerate the exit from gas and set 2035 as the target date for phasing out this costly fossil fuel."

The International Energy Agency (IEA) recently said that falling prices and increasing demand in the winter of 2023-2024 will push global gas consumption back to strong growth this year. In its first quarter gas market report, the International Energy Agency said that global gas demand will grow by 2.5% this year, while gas demand will grow by only 0.5% in 2023.