OPEC predicts a 23% surge in global energy demand over the next two decades, as oil consumption is expected to reach 110 million barrels per day by 2045.
“Oil is irreplaceable for the foreseeable future,” Secretary-General Haitham Al Ghais of the Organisation of the Petroleum Exporting Countries said while addressing the inaugural Energy Asia conference held in the Malaysian capital of Kuala Lumpur.
“In our worldwide outlook, we see global oil demand rising to 110 million barrels a day by 2045,” he said, adding that oil will still comprise about 29% of the energy mix by then.
OPEC’s projection of global oil demand reaching 110 million barrels per day by 2045 contradicts the International Energy Agency’s forecast. The IEA anticipates a decline in annual demand growth, from 2.4 million barrels per day in 2023 to 400,000 barrels per day in 2028.
Just two weeks ago, the IEA stated that global oil demand would rise by 6% between 2022 and 2028, reaching 105.7 million barrels per day, driven by the petrochemical and aviation sectors.
Global Economy’s Expansion to Drive Increased Oil Demand
The Secretary General of OPEC expressed concerns about underinvestment in the oil industry, emphasizing that it would not only challenge the sustainability of existing energy systems but also result in “energy chaos.”
Additionally, OPEC’s secretary general predicted that the global economy’s expansion would lead to another half a million people migrating to cities worldwide by 2030. Consequently, he emphasized that the world would require more oil rather than less.
The World Bank forecasts a decline in global growth to its lowest level in 30 years, projecting an annual growth rate of 2.2% between now and 2030. The growth rate witnessed during the period of 2011-2021 has decreased from 2.6%.
Al Ghais, in recognition of the growing importance of renewable energy, acknowledged that certain OPEC member countries are already making significant investments in this sector, according to CNBC.
“We see global energy demand increasing by 23% through 2045,” he said.
“Gas hydro, nuclear hydrogen and biomass will expand. But it is clear that oil remains an integral part of the mix.”
During the afternoon trading session in Asia, Brent crude experienced a modest increase of approximately 0.92%, reaching $74.53 per barrel. Similarly, West Texas Intermediate (WTI) futures saw a slight rise of about 0.78%, with a trading price of $69.70 per barrel.
