Exxon’s latest forecast sees coal use rising again

In contrast with other Exxon Mobil Corp. (XOM) energy forecasts in recent years, the company’s projection outlined Tuesday sees comparatively greater use of coal compared with natural gas over the next 25 years.

ExxonMobil’s shift in the projected gas-coal balance drew some attention during a 75-minute conference call with analysts. ExxonMobil Tuesday said it expects coal use to grow by an annual rate of 1.6% a year through 2030, little changed from the 1.7% growth outlined in its 2004 forecast. But the oil giant sees natural gas consumption rising by 1.7% annually through 2030, a sharp reduction from the 2.2% annual growth forecast just two years ago.
The 2006 version of the company’s annual energy forecast also points to marginally lower projections for overall energy consumption growth. The oil giant now projects annual consumption growth of 1.6% through 2030, when overall energy use will hit about 324 million barrels of oil equivalent per day, according to a graphic presented Tuesday.

In its 2004 forecast, ExxonMobil projected annual growth of 1.7% through 2030, when consumption would hit about 336 million barrels a day, according to ExxonMobil spokesman Russ Roberts.Market Watch