According to OPEC’s 2023 World Oil Outlook, the organization anticipates global oil demand to reach 116 million barrels per day (bpd) by 2045. This projection reflects an increase from 99.6 million bpd in 2022 and is approximately 6 million bpd higher than what was predicted in the previous year’s report.
The Organization of the Petroleum Exporting Countries revised on Monday its medium- and long-term projections for global oil demand, indicating an increase.
Read more: OPEC+ holds oil policy steady, Saudi and Russia extend voluntary cut
The organization emphasized that meeting this surge would necessitate a massive investment of $14 trillion in the crude sector, despite the rapid growth of renewable energy technologies. This averages $610 billion per year.
Notably, OPEC’s long-term forecast for global oil demand differs from that of the International Energy Agency (IEA), a prominent energy watchdog.
Higher growth
OPEC highlighted the possibility of even higher growth, driven by countries such as India, China, other Asian nations, Africa, and the Middle East. These regions are expected to contribute significantly to the anticipated surge in global oil demand.
The organization emphasized the crucial importance of delivering these investments, highlighting the mutual benefits for both producers and consumers.
OPEC projected that in the medium term, global oil demand is expected to reach 110.2 million bpd by 2028. This represents a significant increase of 10.6 million bpd compared to the levels recorded in 2022.
Practical solutions
In a foreword to the report, OPEC Secretary General Haitham al-Ghais stated that recent developments have prompted the OPEC team to reevaluate the potential of each energy source, placing emphasis on practical and realistic options and solutions.
Al-Ghais expressed that calls to halt investments in new oil projects are misguided and have the potential to result in energy and economic chaos. He further pointed out that history is filled with numerous instances of unrest, serving as a cautionary reminder of the consequences that arise when policymakers fail to recognize the intricate complexities of the energy sector.
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