IEA Outlook: Energy Demand Cut Of 10% By 2030 Achievable

LONDON -- The International Energy Agency offered a prescription Tuesday for an alternative energy policy to cut pollution, reduce poverty and limit energy dependence.

The energy advisor to 26 industrialized nations said by 2030 energy demand could be cut 10% and polluting carbon dioxide by 16% if governments enacted many of the energy-efficiency and pollution-reducing policies they are already thinking about.

World oil demand could be cut by 12.8 million barrels a day - equivalent to the current daily output of top oil producers Saudi Arabia, the United Arab Emirates and Nigeria - to 108.2 million b/d, the IEA said in its yearly World Energy Outlook.

Carbon dioxide emissions linked to global warming could be reduced by 16%, or the equivalent of the combined current emissions from the United States and Canada.

Surging energy demand from developing countries such as China has helped push oil prices to record highs above $55 a barrel in recent days.

Environmentalists worry surging energy use is leading to worsening pollution that is contributing to global warming.

Rising energy needs also increase natural gas- and oil-import dependence, leaving nations vulnerable to price shocks from supply disruptions.

"The worst case is not inevitable," IEA Executive Director Claude Mandil said in a forward to the report.

Tougher fuel-efficiency laws and the faster rollout of more energy efficient cars account for two-thirds of the oil-use savings.

Better policies would shrink coal demand more than a quarter in favor of cleaner gas and nuclear power, the IEA said.

Less reliance on coal and increased transportation and industrial energy efficiency could cut greenhouse gases by 60% in the developing economies, the IEA said.

Increased efficiency could also lessen countries' reliance on imports and boost energy security, the report added.

IEA Web site: http://www.iea.org

-By Shai Oster, Dow Jones Newswires; +44-20-7542-9357; shai.oster@dowjones.com