OPEC Forecasts Rising Oil Demand Through 2050
Contrary to predictions from the International Energy Agency, OPEC expects continued growth in oil demand over the next three decades.
The Organization of the Petroleum Exporting Countries (OPEC) has released its latest annual report on oil demand outlook, indicating a steady increase in global oil consumption through 2050.
According to the report, world oil demand is projected to rise from 103.7 million barrels per day in 2024 to approximately 123 million barrels per day by 2050, representing an 18.6% growth over this period.OPEC attributes this anticipated increase to several factors, including expanding economic growth, increasing populations, urbanization, and the emergence of energy-intensive industries such as artificial intelligence.
The organization also highlights the necessity to extend energy access to billions of people worldwide.
OPEC Secretary General Haitham Al-Ghais emphasized that there is no foreseeable peak in oil demand.This forecast contrasts with that of the International Energy Agency (IEA), which expects global oil demand to begin declining by 2030, primarily due to the proliferation of electric vehicles and a shift towards cleaner energy sources.
The IEA even projects a decrease in Saudi Arabia's oil demand as the country transitions its power generation from crude to natural gas and renewable resources.Ghais pointed out that growth in oil demand is predominantly driven by developing countries.
He also noted that fossil fuels still account for around 80% of the global fuel mix, a proportion that has remained relatively stable since OPEC's inception in 1960.
The OPEC chief criticized certain net-zero carbon emission timelines, arguing they disregard energy security, affordability, and feasibility.Experts argue that rapid fossil fuel phase-out is essential to limit global warming to 1.5 degrees Celsius above preindustrial levels.
However, the differing views between OPEC and the IEA underscore the ongoing debate over the future role of oil in the global energy landscape.
According to the report, world oil demand is projected to rise from 103.7 million barrels per day in 2024 to approximately 123 million barrels per day by 2050, representing an 18.6% growth over this period.OPEC attributes this anticipated increase to several factors, including expanding economic growth, increasing populations, urbanization, and the emergence of energy-intensive industries such as artificial intelligence.
The organization also highlights the necessity to extend energy access to billions of people worldwide.
OPEC Secretary General Haitham Al-Ghais emphasized that there is no foreseeable peak in oil demand.This forecast contrasts with that of the International Energy Agency (IEA), which expects global oil demand to begin declining by 2030, primarily due to the proliferation of electric vehicles and a shift towards cleaner energy sources.
The IEA even projects a decrease in Saudi Arabia's oil demand as the country transitions its power generation from crude to natural gas and renewable resources.Ghais pointed out that growth in oil demand is predominantly driven by developing countries.
He also noted that fossil fuels still account for around 80% of the global fuel mix, a proportion that has remained relatively stable since OPEC's inception in 1960.
The OPEC chief criticized certain net-zero carbon emission timelines, arguing they disregard energy security, affordability, and feasibility.Experts argue that rapid fossil fuel phase-out is essential to limit global warming to 1.5 degrees Celsius above preindustrial levels.
However, the differing views between OPEC and the IEA underscore the ongoing debate over the future role of oil in the global energy landscape.
