
In the latest edition of its Global Outlook, US-based oil major ExxonMobil has joined OPEC in warning about potential shortages of oil and gas if investments are not made to develop new oil and gas projects.
The report predicts that in 2050, the demand for crude oil in the world will still be over 100 million barrels per day (bpd) on average, with there also still being strong demand for gas.
While there will be a big increase in renewable energy production over this period, ExxonMobil, which also makes the Mobil SHC gear oil, forecasts that 80% more electricity will be consumed in 2050 compared to today.
The report’s summary says that easy access to affordable energy is what makes our current living standards possible, but for those:
“….without that access, even the most basic tasks of life can be extremely challenging. Looking out to 2050, the global population will continue to grow, adding to the demand for energy. Any transition that fails to affordably meet this demand along with the world’s ever-evolving needs is simply not just.”
The report also downplays how much electric mobility will affect the demand for oil. It says that even if all new cars worldwide were electric from 2035, the global demand for oil in 2050 would still be 85 million bpd, which is what it was in 2010.
At the same time, it expects oil production to go down by about 15% each year, leading to a massive supply shortage, although many players will likely encourage further investment long before this occurs.