According to the Organization of the Petroleum Exporting Countries (OPEC), the world’s demand for oil is expected to continue rising in the future. OPEC predicts that by 2045, global oil consumption will reach 110 million barrels per day, accounting for approximately 29% of the global energy mix.
During a speech at the Energy Asia conference in Kuala Lumpur, OPEC Secretary General Haitham Al Ghais emphasized the irreplaceable nature of oil in the foreseeable future. He warned that underinvestment in the oil industry would not only jeopardize current energy systems but also result in “energy chaos.” Al Ghais highlighted the fact that the global economy is steadily expanding, and by 2030, an additional half a billion people will move to cities across the world. This population growth and economic expansion will lead to a greater demand for oil.
While acknowledging the increasing role of renewable energy sources in the global energy mix, Al Ghais emphasized that oil will remain an integral part of the equation. He stated that despite the expansion of gas, hydro, nuclear, hydrogen, and biomass, it is clear that oil is here to stay.
In support of this, Al Ghais mentioned that some OPEC member states have already been investing significantly in renewable energy. This indicates that while diversification is important, these countries recognize the continued importance of oil in meeting the growing energy demand.
The International Energy Agency (IEA) also recently warned of an oil shortage. Their report projected a 6% increase in global oil demand between 2022 and 2028, driven by the petrochemical and aviation sectors. It noted that around three-quarters of this increase would come from Asia, with India expected to surpass China as the main source of growth by 2027.
Overall, these predictions from both OPEC and the IEA highlight the ongoing significance of oil in meeting the world’s energy needs. While efforts to transition towards renewable energy should continue, it is crucial to recognize that oil will remain a vital component of the global energy mix for the foreseeable future.
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