The Organization of the Petroleum Exporting Countries (OPEC) says crude oil will continue to be the primary source of energy for decades.
Brent crude, the world benchmark for oil, climbed to $ 80 a barrel Tuesday – its highest level since 2018.
Speaking at the 2021 OPEC World Oil Outlook (WOO) presentation on Tuesday, Mohammad Barkindo, the organization’s general secretary, said global primary energy demand is expected to increase by 28% between 2020 and 2045.
He said energy would be needed to power more homes, services, businesses, equipment, among others.
“This will require the use of all forms of energy to support post-pandemic recovery, energy transition and to meet long-term energy needs,” Barkindo said.
OPEC has forecast that global oil demand will increase by 17.6 million barrels per day (bpd) in two and a half decades, rising to 108.2 million bpd in 2045 from 90.6 million bpd in 2020.
The oil cartel said annual growth in oil demand will average 2.6 million b / d in the first five years, before slowing to 600,000 b / d from 2025 to 2030 and then to 300. 000 bpd from 2030 to 2035.
He said that in the outlook, renewables have seen the strongest growth, from a global fuel share of around 2% in 2020 to more than 10% by 2045.
“It is important to note that OPEC member countries are investing heavily in renewables as they seek to diversify their energy mix,” Barkindo said.
âGas is experiencing the second fastest growing growth, in part due to higher rates of urbanization, industrial demand and its competitiveness vis-Ã -vis coal in power generation.
âIn fact, all energies are expected to experience growth, with the exception of coal. Yet it is oil that retains its first place in the energy mix. It is still expected to supply 28% of the world’s energy needs by 2045. “
Barkindo said it was clear the world would need more energy in the decades to come.
He also said the global economy was estimated to more than double as the world’s population is expected to reach 9.5 billion.
Barkindo added that there is enormous potential for socio-economic development in terms of expanding access to modern energy services for the billions of people who continue to do without the required development.