Despite the call for the development of alternative energy resources, oil and gas that Nigeria depends on for foreign exchange generation would continue to dominate the world's energy mix by 2035.
In its latest report - DNV GL's Energy Transition Outlook (ETO) - DNV GL Oil & Gas disclosed that oil and gas will be crucial components of the world's energy future from 2034.
The report indicated that Nigeria is one of the top ten nations in the world with huge natural gas reserves.
According to the report, Nigeria's gas reserves were estimated at 187 trillion standard cubic feet of gas (tscf), with current production estimated at 8.24 billion standard cubic feet per day (scfd).
The report disclosed that this is made up of 98 tscf of associated gas (AG) and 89 tscf of non-associated gas, adding that the combined total of proved, probable and possible reserves is estimated at 300 tscf.
"The current gas supply is enough to support about 5 giga watts (GW) of power generating capacity. Nigeria's gas reserves are about three times the value of her crude oil reserves.
"The largest natural gas initiative in Nigeria is the Nigerian Liquefied Natural Gas project which is operated by several foreign oil companies and the Nigerian National Petroleum Corporation (NNPC). Another major natural gas project is the West African Gas Pipeline which has encountered several bottle-necks.
"However, when completed the pipeline would transport natural gas from Nigeria to Ghana, Togo, Benin Republic and Cote d'Ivoire. Bulk of the AG is flared off and Nigeria loses an estimated $18.2 million daily from the loss of revenue from flared gas.
"In recent years, the volume of gas flared has been significantly reduced and plans have been initiated to put an end to gas flaring in the coming years. While renewable energy will grow its share of the energy mix, oil and gas will account for 44per cent of world energy supply in 2050, compared to 53per cent today.
"The stage is set for gas to become the largest single source of energy towards 2050, and the last of the fossil fuels to experience peak demand of which the company expects will occur in 2035.
Elisabeth Torstad, the Chief Executive Officer of DNV GL - Oil & Gas, stated that the company has made innovative efforts, resulting in cost saving and efficiency gains.
She suggested that the oil and gas companies must continue on a path of strict cost control to stay relevant.
"Coming from a tradition of technological achievements, and having the advantage of existing infrastructure and value chains, DNV GL has the potential to continue to contribute to energy security and shape our energy future.
"Increased digitalization, standardization and remote or autonomous operations will play a central role in achieving long-term cost savings and improving the oil and gas industry's carbon footprint. The industry is also expected to turn to innovations in facility design, operating models and contracting strategies."
Also, DNV GL added that the demand for oil will peak in 2022, driven by expectations for a surge in prominence of light electric vehicles, accounting for 50per cent of new car sales globally by 2035.
It stated that the global demand for energy will flatten in 2030, and then steadily decline over the next two decades.
The company indicated that fossil fuel share of the world's primary energy mix will also reduce from 81per cent, currently to 52per cent in 2050.