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Thursday, May 23, 2024

Global oil demand will keep growing – OPEC

The fossil fuel will remain irreplaceable for the foreseeable future, according to the organization

The world’s appetite for oil will continue rising to hit 110 million barrels a day by 2045, the Organization of the Petroleum Exporting Countries (OPEC) predicted on Monday. The fossil fuel will still comprise about 29% of the global energy mix by then, the alliance claimed.

“Oil is irreplaceable for the foreseeable future,” OPEC Secretary General Haitham Al Ghais stated while addressing the inaugural Energy Asia conference in the Malaysian capital of Kuala Lumpur.

Read more: OPEC+ production cuts: mixed impact on oil prices and worries for consumers

According to Al Ghais, underinvestment in the oil industry will only challenge the viability of current energy systems and lead to an “energy chaos.”

He predicted that from now until 2030 another half a billion people will move to cities across the world as the global economy continues to expand, which means the world will need more oil.

Al Ghais acknowledged that renewables will play a greater role in the world’s energy mix going forward, and asserted that some OPEC member states have been “already investing significantly” in the sector.

“We see global energy demand increasing by 23% through 2045,” he said, adding: “Gas hydro, nuclear hydrogen and biomass will expand. But it is clear that oil remains an integral part of the mix.”

Earlier this month, the International Energy Agency (IEA) warned of an oil shortage, saying global demand would rise by 6% between 2022 and 2028, driven by the petrochemical and aviation sectors. The report said around three-quarters of the increase in the six-year period to 2028 would come from Asia, with India surpassing China as the main source of growth by 2027.

Read more: US wants hike in global crude output, including from OPEC: Official