World energy demand to rise 0.9% per year to 2045: OPEC
Global primary energy demand will see an average growth rate of 0.9% per year, increasing from 289 million barrels of oil equivalent per day (mboe/d) in 2019 to 361 mboe/d in 2045, according to the Organization of the Petroleum Exporting Countries' (OPEC) World Oil Outlook 2045 published on Thursday.
The outbreak of the COVID-19 pandemic resulted in the sharpest downturn in energy and oil demand, OPEC said, describing the pandemic period as “the most severe economic downturn since the Great Depression in the 1930s.”
Despite the huge drop in 2020, OPEC said global primary energy demand would continue growing in the medium- and long-term, increasing by 72 mboe/d in the period to 2045.
OPEC forecast that energy demand in non-OECD countries would increase by 76.5 mboe/d, while demand in the OECD would drop by around 4.4 mboe/d in the same period.
OPEC said nearly half of total energy demand growth is expected to come from India and China.
“India, China and other developing countries with increasing populations and high economic growth play a key role in increasing energy demand while developed nations in the OECD are exerting more of their efforts on energy efficiency and low-carbon technologies,” it added.
The transition to renewable energy sources and a reduction in greenhouse gas (GHG) emissions will continue to be supported by policy instruments in line with the objectives of the Paris Agreement, the report said.
While oil demand is expected to gradually recover as the world emerges from the pandemic, the outlook for oil production is also dependent upon expectations of price stability, recovered oil demand levels and resulting investment decisions.
According to the report, oil will remain the fuel with the largest share of the global energy mix until 2045 with more than a 27% share followed by gas with 25% and coal with 20%.
OPEC expects that oil demand will reach 94.4 mboe/d in 2025 and 99.5 mboe/d in 2045 based on healthy growth rates.