Coal to reign as dominant energy source by 2020

Will replace oil despite clean energy initiatives.

William Durbin, president of global markets at Wood Mackenzie, said global government policies to slash carbon emissions will do nothing to prevent a hydrocarbon world. He sees carbon policies implemented by world governments as ultimately having a muted impact. The eventual effect will be that coal will take oil‘s place as the dominant fuel worldwide by 2020,. Durbin sees global coal consumption reaching 4,500 million tonnes of oil equivalent (Mtoe) in 2020 with oil demand at 4,400 Mtoe. In 2010, demand for coal and oil stood at 3,600 Mtoe and 4,000 Mtoe, respectively. Durbin said China and India’s aggressive power requirements will mainly be responsible for coal’s growing role in the energy mix.

China will help push coal to the top, with coal’s abundance and affordability making it the fuel of choice for China. Durbin also said that the USA, Europe and Asia will drive coal demand. In Southeast Asia, Durbin sees increased coal buying being brought about by gas suppliers’ inability to keep up with demand. Wood Mackenzie is a global energy and mining research and consultancy group supplying comprehensive data, written analysis and consultancy advice.