The OPEC logo is pictured at OPEC headquarters on October 4, 2022. In October last year, the oil cartel announced its decision to cut production by two million barrels per day.
Joe Klamar | Afp | Getty Images
KUALA LUMPUR – Global oil demand will rise to 110 million barrels per day in 20 years, lifting world energy demand by 23%, OPEC said on Monday.
“Oil is irreplaceable for the foreseeable future,” said Secretary-General of the Organization of the Petroleum Exporting Countries Haitham Al Ghais, speaking at the opening Energy Asia conference held in the Malaysian capital of Kuala Lumpur.
“In our global outlook, we see global oil demand rising to 110 million barrels per day by 2045,” he said, adding that oil will still make up about 29% of the energy mix by then.
The prediction is contrary to Forecasts of the International Energy Agency year-on-year demand growth tapers from 2.4 million bpd in 2023 to 400,000 bpd in 2028.
Two weeks ago, the IEA forecast that global oil demand would grow by 6% from 2022 to 105.7 million barrels per day in 2028, driven by the petrochemicals and aerospace sectors.
OPEC’s secretary general added that insufficient investment in the oil industry will only challenge the viability of current energy systems and lead to “energy chaos”.
Between now and 2030, Al Ghais predicted an additional half a million people will move to cities around the world as the global economy continues to expand.
The world will need more oil — not less, he said.
Gas-fired hydropower, nuclear hydrogen and biomass will expand. But it is clear that oil remains an integral part of the mix.
Haitham Al Ghais
Secretary General of OPEC
Global growth is projected to fall to a three-decade low of 2.2% per year between now and 2030, down from 2.6% in the 2011-2021 period. The World Bank.
Al Ghais acknowledged that renewables will play a bigger role in the world’s energy mix in the future and confirmed that some OPEC member countries are “already investing significantly” in the area.
“We see global energy demand increasing by 23 percent by 2045,” he said.
“Gas, nuclear hydrogen and biomass will expand. But it’s clear that oil remains an integral part of the mix.”
Brent crude oil traded 0.92% higher at $74.53 in Asian afternoon trade. West Texas Intermediate Futures rose slightly by 0.78% to trade at $69.70 a barrel.