In Oil and Gas industry trends, income and population are two of the most important variables that determine a country’s energy demand. As prosperity rises, incomes rise, and so does demand for energy.
The Global GDP Growth chart shows that the non-OECD, emerging regions have almost three times the percentage growth rate of developed economies.
As background, the OECD (Organization for Economic Co-operation and Development) is an international organization helping governments tackle the challenges of a globalized economy. Its membership comprises approximately 30 of the worlds more developed economies.
“In 2005, Non-OECD and OECD energy demand was about equal, but by 2040, Non OECD demand will be nearly double that of the OECD.”
This projection has numerous geopolitical implications, as well as oil and gas supply demand implications.
For example, while China garners most headline attention, the Middle East as a whole has a similar demand size and growth pattern. These economies continue to invest recent oil revenue windfalls in massive infrastructure projects.
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