In a keynote speech, Haitham Al Ghais, the secretary general of OPEC, has disputed notions of oil demand peaking anytime soon.
Al Ghais was speaking in Calgary, Canada at the Global Energy Show. Global oil production reportedly averaged 103 barrels per day (bpd) last year; however, the International Energy Agency predicted in 2023 that oil demand would peak as we approach 2030.
In contrast, with the world’s population expected to approach 10 billion people by 2050, OPEC believes global oil demand will exceed 120 million bpd. This is despite increases in renewables and the electrification of mobility and industry. Al Ghais said about this:
“…there is no peak in oil demand on the horizon. The fact that oil demand keeps rising, hitting new records, year on year, is a clear example of what I’m saying. Meeting this ever-rising demand will only be possible with adequate, timely and necessary investments in the oil industry.”
If his predictions prove true, it will vindicate the mixed approaches of majors like TotalEnergies, which makes the Total metalworking and coolant range. Most are continuing to invest in oil and gas production while also diversifying into areas like renewable power generation and sustainable aviation fuel.
Indeed, OPEC claims that massive investment will be needed to meet the growing demand as existing resources become depleted. It estimates this at a total global investment of $17 trillion over the next 25 years. Al Ghais said underinvestment in the industry could threaten market stability and energy security.
