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Oil Will Continue To Be Leading Energy Source For Decades – OPEC

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The Organisation of Petroleum Exporting Countries (OPEC) has projected crude oil to continue leading source of energy for decades.

This is coming as brent crude, the global oil benchmark, climbed to $80 per barrel on Tuesday – its highest level since 2018.

Mohammad Barkindo, the organisation’s secretary-general, while speaking on Tuesday at the presentation of 2021 OPEC World Oil Outlook (WOO), said global primary energy demand is expected to increase by 28 percent in the period between 2020 and 2045 and energy would be needed to power more services, homes, businesses, equipment, among others.

Barkindo said: “This will require the use of all forms of energy to support the post-pandemic recovery, the energy transition and address long-term energy needs,” 

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The oil cart projected that global oil demand will rise by 17.6 million barrels per day (bpd) in two-and-a-half decades, growing to 108.2 million bpd in 2045 from 90.6 million bpd in 2020, while annual oil demand growth will average 2.6 million bpd during the first five years, before slowing to 600,000 bpd from 2025-2030 and then 300,000 bpd from 2030-2035.

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Also Read: Gas Crisis May Increase Oil Prices By $10; Mele Kyari

He disclosed that in the outlook, renewables witnessed the largest growth, rising from a global fuel share of around two percent in 2020 to over 10 percent by 2045.

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“It is important to note that OPEC member countries are making significant investment in renewables as they look to diversify their energy mix,” 

“Gas sees the second largest growth, driven in part by higher urbanisation rates, industrial demand and its competitiveness over coal in power generation.

“In fact, all energies are set to witness growth, with the exception of coal. It is oil, however, that retains its number one position in the energy mix. It is still expected to provide 28 per cent of global energy needs by 2045.” He said.

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