Demand for natural gas is expected to increase by 20 mbboe/d, reaching 87 mbep/d in 2045. Its low CO2 emissions, compared to coal, make gas the preferred choice in many countries. In addition, natural gas is critical to providing backup power supply due to the intermittent nature of renewable electricity generation. The share of natural gas in the primary energy mix is expected to rise to 24.2% in 2045, surpassing coal in 2030. In 2019, Trinidad and Tobago was the world's tenth largest exporter of liquefied gas to all continents. Its main market was the US, Spain, the Dominican Republic and China, while Peru is the second largest exporter of liquefied natural gas in the region.
Oil demand is projected to increase by 15.4 mboe/d, reaching 106.1 mboe/d in 2045. Although its share of the energy mix will decrease, oil will continue to be the fuel with the largest share. Oil trade flows are crucial to balancing the market and reducing potential demand and supply shocks. In a global context of high inflation and geopolitical tensions, energy policies seek to limit global warming and build a resilient and sustainable future. Hydrocarbon prices are facing an era of uncertainty due to the energy transition and geopolitical changes. How will the region's producing countries Trinidad and Tobago and Peru be able to maximize the value of their recent investments in natural gas and oil, ensuring their usefulness in the future while moving towards a sustainable and resilient energy transition?
