Global oil demand rising steadily, to hit 123m bpd by 2050: OPEC
On the contrary, Opec forecasts that demand will rise steadily to nearly 123 million barrels per day (bpd) by 2050, driven by rapid growth in developing economies.
The report comes as Opec+ begins easing voluntary production cuts. Since May, over 400,000 bpd has been gradually restored to the market.
However, a core cut of 3.65 million bpd remains in effect through to the end of 2026, reflecting a cautious approach to market stability.
Addressing the gathering, Opec Secretary General Haitham Al Ghais, said that the world requires more energy in the decades to come, and 'for this to be available in a secure, stable and realistic manner that the world will continue to need all energies'.
Al Ghais also highlighted that the world will continue to need all energies. "It is also a future in which we need to embrace all technologies, to drive innovation and efficiencies, and ensure that all peoples are taken into account, particularly given that it is the non-OECD developing world that will drive future energy growth," he stated.
This long-term projection runs counter to the International Energy Agency (IEA), which expects oil demand to peak before 2030 due to increased adoption of electric vehicles (EVs) and renewable energy.
Opec, however, sees fossil fuels, particularly oil, playing a central role in the global energy mix for decades to come.
While demand in Europe and North America is expected to plateau or fall, consumption is set to surge in India, Africa, and the Middle East. Population growth, urbanisation, and rising incomes are increasing energy needs in these regions — and oil remains one of the most accessible and reliable sources.
Opec has slightly revised its medium-term demand forecast, citing slower economic growth in China and faster-than-expected EV uptake. Still, it predicts oil demand will hit 111.6 million bpd by 2029, down only marginally from the 111.8 million forecasted previously.
To keep pace with rising demand, the oil industry will need to invest approximately $18.2 trillion by 2050, according to Opec. This includes funding for exploration, production, refining, transport, and maintenance.
Without adequate investment, the report warns, the world could face supply shortfalls and price instability. Given that many existing oil fields naturally decline by 4–5% each year, sustained funding is essential just to maintain current output - let alone meet future demand.
Opec stresses that the global energy transition should be 'orderly, just, and inclusive.' While renewables are expanding, many countries still depend on oil for transport, manufacturing, and development.
By 2050, Opec expects fossil fuels to account for over 60% of global energy supply, with oil contributing around 29%. -TradeArabia News Service
Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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