OPEC affirms that oil will remain the mainstay of global energy until 2050

The Organization of the Petroleum Exporting Countries (OPEC) has just announced that global crude oil demand will continue to increase until at least 2050, while also stating that efforts to quickly transition away from fossil fuels are not feasible.

In its latest annual report on oil demand outlook, OPEC forecasts that global oil demand will increase by 18.6%, from 103.7 million barrels per day (bpd) in 2024 to around 123 million bpd in 2050.

OPEC Secretary General Haitham Al Ghais said oil demand is increasing due to economic growth, increasing population, expanding urbanization, the emergence of new energy-intensive industries such as artificial intelligence (AI), and the need to provide energy to billions of unreached people.

He asserted that there was no sign that oil demand would peak in the near future.

This forecast puts OPEC - an organization that brings together many major oil exporting countries - in opposition to the view of the International Energy Agency (IEA), which includes many oil consuming countries.

Last month, the IEA forecast that global oil demand will start to decline from 2030 due to the development of electric vehicles and the trend of switching from crude oil to other sources for energy production.

The IEA even said that oil demand in Saudi Arabia - a key OPEC country - will also fall as the country switches to using gas and renewable energy to produce electricity.

Mr Ghais said that oil demand growth would come mainly from developing countries, adding that fossil fuels still accounted for about 80% of the global energy mix – virtually unchanged from when OPEC was founded in 1960.

In recent years, he said, more and more policymakers have realized that the narrative of rapidly phasing out oil and gas is not viable.

OPEC chief has criticised multiple timelines for achieving a net-zero carbon emissions target for failing to consider energy security, affordability and feasibility.

According to experts, rapidly eliminating fossil fuels is necessary to limit global temperatures from exceeding 1.5 degrees Celsius compared to pre-industrial times./.

According to VNA

Source: https://baothanhhoa.vn/opec-khang-dinh-dau-mo-van-la-tru-cot-nang-luong-toan-cau-den-2050-254560.htm