Renewable energy off to slow start, Statoil says

STAVANGER, Norway, June 13 (UPI) -- The chief economist at Norwegian energy company Statoil said Friday renewable energy won't be able to satisfy global energy demands.

Statoil published an annual report on its macroeconomic and energy market developments through 2040. Eirik Waerness, chief economist at the energy company, said the world will continue to rely on fossil fuels in the future.

"Even a strong growth in renewables will not be enough to replace the natural decline from producing fields and meet the global demand for energy," he said in a statement.

Under a case where existing climate policies, forecasts and targets are embraced, Statoil says it expects new renewables to increase their market share from 1 percent to 7 percent by 2040, growing faster than traditional renewables. Fossil fuels would supply 75 percent of the world's energy by 2040, a 6 percent decline from 2010 levels.

Statoil's predictions are in line with an early June report from the International Energy Agency.

IEA said around 15 percent of mid-term annual investments will target renewable energy resources, while the bulk of spending is directed at fossil fuels.

More than half of the $48 trillion in investments through 2035 are needed to keep production of oil and gas fields at current levels and to replace existing power plants before they reach the end of their life cycle, IEA said.