The Organization of the Petroleum Exporting Countries (OPEC) has predicted global energy demand to increase by 23 percent in 2045. This was revealed by OPEC secretary-general Haitham Al Ghais at a meeting of oil and gas industry leaders in Kuala Lumpur.
According to Al Ghais, the forecast will largely be driven by the anticipated growth in the global economy. In addition, the expected surge in energy demand will be influenced by continuing global population increase.
“In our worldwide outlook, we see global oil demand rising to 110 mn barrels a day by 2045,” he said, adding that oil will still comprise about 29 percent of the energy mix by then.
Increased investment needed
Moreover, Al Ghais said that the global oil industry will need $12.1 tn in investments in the next two decades. This will help the oil and gas industry to cope with the rising global energy demand.
The OPEC official also underscored the need for investing in all types of fuels and technologies to meet sustainability targets.
“We will require innovative solutions such as carbon capture utilization and storage, and hydrogen projects in addition to a circular carbon economy, which has received a positive endorsement from the G20,” he said.
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Global energy demand challenges
Uncertainties created by the continuing Russia-led war in Ukraine following the pandemic has destabilized the global economy. China, the world’s global factory and the second largest oil importer, is also experiencing an economic slowdown. This has prompted the OPEC+ alliance to reduce its oil production.
Meanwhile, Fatih Birol, executive director of the International Energy Agency (IEA), affirmed that it would revise its global oil demand projections.
Previously, the IEA projected that global oil demand will increase 6 percent from 2022 to 105.7 mn barrels per day in 2028 on the back of rising demand from the petrochemical and aviation industries.
The agency said it will align future forecasts with economic growth expectations in China and other key markets.
Between now and 2030, Al Ghais predicted another half a billion people will move to cities across the world. Consequently, it will have an impact on the global energy demand as the world’s economy continues to expand.
“The world will need more oil — not less,” Al Ghais added.
UAE commits support
At the meeting, UAE energy minister Suhail Al Mazroui assured that OPEC+ alliance is taking adequate measures to stabilize the oil market.
“We believe that what we are doing in OPEC+ is sufficient to address the issue of supply and demand. We are acting on behalf of all producers worldwide and in the interest of achieving a balance between supply and demand for all consumers as well,” he said.
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