Oil Cartel OPEC Expects Higher Oil Demand in the Next 20 Years
Demand for oil will continue to rise over the next two decades and remain a dominant energy source. The countries of the oil cartel OPEC expressed this expectation, despite the warnings that the oil demand must decrease to combat climate change.
The latter is, among other things, the view of the International Energy Agency, which warned that climate goals would not be achieved if the oil demand is not quickly curtailed.
Oil demand and prices fell sharply last year as the coronavirus pandemic hit. But both have bounced back this year as economies recover from the crisis. According to an OPEC report, emerging economies will have more oil demand, while in wealthier countries, demand will decline by 2023.
According to OPEC, demand will increase from 90.6 million barrels per day to 108.2 million barrels per day between 2020 and 2045. Compared to 2019, the last year before the crisis, oil demand will increase by 8.2 million barrels per day by 2045.
The OPEC report comes as Brent crude prices soared above $80 a barrel for the first time in nearly three years, reflecting projected increases in demand and concerns about tight supply as the world slowly move out of the loop crisis is coming.
The IEA, which advises developed countries on energy policy, warned in May that all future fossil fuel projects must be scrapped if the world wants to achieve zero carbon emissions by 2050. The scrapping of projects is also necessary to have any chance of limiting global warming to 1.5 degrees.