In a forthcoming key report, OPEC should retain its position that global oil consumption will rise for another ten years. This is longer than many other forecasts estimate. That is despite the increasing importance of renewable energy sources and electric vehicles, according to two OPEC sources.
On October 31, the Organization of the Petroleum Exporting Countries should revise its outlook for the long-term oil demand in its 2022 World Oil Outlook. According to the 2021 prediction, oil demand will stabilize after 2035. Oil producers and OPEC, whose 13 member countries depend on oil imports, will benefit from rising oil demand over the next decade or more, justifying continued investment in new deliveries. Consumers and governments are less motivated to support measures to reduce oil consumption to combat climate change.
Epidemic and Energy Consumption
When the pandemic hit demand in 2020, OPEC reversed course, predicting that consumption would eventually fall after years of expected steady growth. The most recent revision will probably maintain OPEC among the more upbeat analysts of oil demand. Regarding the demand outlook, one of the OPEC insiders remarked that It is comparable to last year.
Other forecasts indicate an earlier peak in oil demand. According to TotalEnergies’ prediction, this will happen by 2030. For the first time in its modeling history, the International Energy Agency stated on Thursday that demand for all fossil fuels was about to peak, with oil use leveling off in the middle of the next decade.
OPEC headquarters in Vienna declined to answer questions ahead of the publication’s debut in Abu Dhabi on Monday, when OPEC Secretary General Haidam Al-Gais and other OPEC officials will attend. Another OPEC source claimed that the ongoing epidemic recovery and Russia’s invasion of Ukraine, which has caused gas and oil prices to spike and an energy crisis, might increase oil demand in the near future.