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The hidden variable
January 14, 2010
Efficiency enables us to grow economies with less energy.
At first glance, it’s an equation that doesn’t seem to add up.
The United States and other developed (OECD) nations will grow their economies by more than 50 percent from 2005 to 2030. Yet according to a recent ExxonMobil study, energy consumption in these nations will remain essentially unchanged.
How is this possible? The main reason is energy efficiency.
Efficiency is the hidden variable in the global energy supply/demand equation. By enabling us to use less energy to run our vehicles, homes and businesses, efficiency acts as a curb on demand.
In fact, in its Outlook for Energy – A View to 2030, ExxonMobil projects that gains in energy efficiency will reduce the growth of global energy demand by about 65 percent through 2030.
From hybrid cars to state-of-the-art manufacturing processes, new energy-efficiency technologies will slow growth in demand — and emissions — around the world.
However, in developing (non-OECD) countries such as China and India, large populations are only beginning to ramp up their energy usage. There, efficiency gains will be outpaced by growth in demand, driven by rapid increases in economic output and personal incomes.
As a result, global energy demand is projected to be almost 35 percent higher in 2030 compared to 2005.
We invite you to look at ExxonMobil’s Outlook for Energy, recently updated and available on our web site. It shows how efficiency will be essential to powering economic growth while also reducing the impact of energy use on the environment.
We have made a good start. The U.S. economy already improved its energy efficiency by 35 percent from 1980 to 2005. To accelerate this progress, government and industry must continue to support the development and expansion of energy-saving technologies for the next 25 years and beyond.
Using less energy to achieve more economic growth might sound impossible, but with energy efficiency, it all adds up.
This is the first in a series on ExxonMobil’s outlook on long-term energy trends.
