By Oluwatosin Maliki
The Organization of the Petroleum Exporting Countries (OPEC), disclosed on Monday that it expects the growing demand for crude oil to continue for the next two decades (2045).
According to OPEC’s 2023 annual report, the Organization of the Petroleum Exporting Countries forecasts demand for crude to hit 116 million barrels per day (mbd) by 2045 under its main scenario, a 16.5 percent increase from the 99.4 mbd in 2022.
Indicating a large increase of 6 mbd from its estimate last year.
OPEC chief Haitham Al Ghais said, Oil demand has “the potential to be even higher”.
Furthermore, he emphasised in the forward to the report, which comes just eight weeks before the next UN climate conference, COP28, in Dubai, “What is clear is that the world will continue to need more energy in the decades to come”.
The report noted that dozens of countries at the conference will try to impose the adoption of the objective of an end to the use of fossil fuels like oil, natural gas and coal.
OPEC whose 13 member states include Saudi Arabia, the Gulf states and Venezuela, explained that oil demand will be driven by emerging and developing nations, with India in pole position.
Also, it sees oil demand in the OECD club of advanced economies depreciate from 2025.
In addition, OPEC said that in order to meet this growing demand, additional investment in fossil fuel production will be needed, putting the figure at $14 trillion by 2045, or roughly $610 billion per year.
“It is vital that these are made; it is beneficial for both producers and consumers,” said Al Ghais, a Kuwaiti oil executive.
He warned, in criticism aimed at the International Energy Agency (IEA), “Calls to stop investments in new oil projects are misguided and could lead to energy and economic chaos”.
The IEA surprised the world in 2021 and also shocked oil exporting nations by calling for a halt in new investment in fossil fuel production to attain carbon neutrality by 2050.