Oil & Gas

OPEC's latest World Oil Outlook (WOO) for 2024 asserts that peak oil demand is not imminent, projecting that global oil consumption could exceed 120 million barrels per day (mb/d) by 2050. This forecast counters the prevailing narrative of a rapid shift to renewable energy, emphasizing that strong demand will primarily come from non-OECD countries, particularly India, Africa, and the Middle East.

From 2023 to 2029, OPEC expects global oil demand to grow by over 10 mb/d, with non-OECD nations contributing nearly all of this increase. While demand in OECD countries is projected to stagnate, non-OECD demand is set to rise significantly, driven by key sectors such as petrochemicals, road transportation, and aviation. Notably, the petrochemical industry alone is anticipated to account for an additional 4.9 mb/d by 2050.

OPEC highlights that oil and gas will continue to dominate the global energy mix, comprising over 50% of energy consumption through 2050. The organization argues against the idea of phasing out fossil fuels, stating that the continued investment in oil infrastructure is crucial for meeting future energy needs. To support this demand, an estimated $17.4 trillion in investment will be necessary by 2050.

In conclusion, OPEC's outlook paints a clear picture: despite the rise of renewables, oil will remain essential for global energy needs in the coming decades. The projected growth in demand from non-OECD countries and the substantial investments required underscore the enduring significance of oil in the world’s energy landscape.