Royal Dutch Shell said the failure of crude suppliers to keep pace with accelerating demand may prompt the expansion of renewable energy.

There's "plenty of oil in the world," Shell's Scenario Team said today on a Webcast led by Global Business Environment Vice President Jeremy Bentham. "The important moment is actually not a possible peak of oil production;" it's when demand exceeds supply, which may "come well before a peak" in output.


Under two of Shell's scenarios, which run until 2050, the company expects a "step-change in the growth rate of energy" demand because of population expansion and economic development. Supplies of easy-to-access oil and natural gas will fail to meet demand after 2015, Chief Executive Officer Jeroen van der Veer said in January.

Shell, based in The Hague, said in February that it plans to maintain a broad portfolio of renewable resources, with biofuels remaining an "important" alternative to conventional oil besides hydrogen, solar, wind and nuclear power. Renewables will supply about 30 percent of global primary energy by 2050, according to Shell.