Fossil fuels to remain top global energy source

This despite rising use of renewable energy.

The International Energy Agency said in its 2013 World Energy Report that the increase in demand for fossil fuels in developing countries led by China and India means the current demand for fossil fuels, which is 82% of all fuel sources, is the same as it was 25 years ago.

It said China and India’s surging energy demand will have a massive transformative impact on world energy markets, particularly in Australia and the United States.

Because of this, renewable energy sources are only expected to reduce the demand for gas, coal and oil to a 75% market share in 2035.

IEA said coal remains the largest source of generation, with strong growth in non-Organization for Economic Cooperation and Development countries far outweighing reductions in OECD countries.

In North America, Australia and much of Europe, however, the market share of fossil fuels such as natural gas, oil and coal will fall from 68% in 2011 to 57% in 2035.

There are signs of improvement in renewable energy with the share of renewables in total power generation expected to rise from 20% in 2011 to 31% in 2035.

The USA is expected to become the top supplier of natural gas and electricity to Southeast Asia, outpacing Europe and Japan. Natural gas in the U.S. trades at one-third of import prices to Europe and one-fifth to those in Japan, giving U.S. producers a significant advantage.