The increasing production of oil and gas in Australia will be a major factor for the country’s emergence as a global energy leader, according to the International Energy Agency (IEA).
The IEA expects the country to be one of the biggest gas suppliers in the world, amid a shift to gas-fired production from coal-powered generation. Its World Energy Outlook showed that this might happen by 2040.
The shift from coal will lead to an increased need to build gas-fired facilities. For this reason,stainless steel pipe fittings and other materials will be more necessary to build industrial pipework. The IEA outlook cited four major changes to the global energy system in the next 20 years, including a population boom that would propel demand to an even higher level.
By 2040, the agency expects that renewable energy will account for most of the global demand at an estimate 40 per cent. Investments in renewables will also represent roughly two-thirds of spending in future generators. Energy Minister Josh Frydenberg said that gas will make up 72 per cent of Australia’s energy mix in the future.
A separate report from the IEA said that Australia’s energy sector has increasingly become aware of the advantages of using renewable sources for power generation. Clean energy sources such as solar and wind would allow the industry to save on costs and reduce emissions, according to the Renewable Energy for Industry report.
The report cited the direct integration of renewable energy into industrial assets as a major benefit. By using renewable sources, users may achieve better productivity, more revenue opportunities and “hedging against fuel and grid price volatility,” the report noted.
Australia needs to invest in building materials for power plants to meet an expected growth in oil and gas demand from around the world.