- OPEC projects global oil demand to rise in the coming years despite increasing electric vehicle adoption.
- Petroleum products are essential for various sectors, including electricity transmission.
- Continued investment in oil is crucial to meet future energy demands and ensure energy security.
OPEC Secretary-General Haitham Al-Ghais emphasized that oil will continue to play a crucial role in future energy pathways. He stated that petroleum products are indispensable for various sectors,
particularly in electricity generation and transmission. Al-Ghais pointed out the practical impossibility of entirely replacing oil with electricity, highlighting the need for petroleum-derived materials in manufacturing and maintaining electrical infrastructure.
OPEC Foresees Continued Vital Role for Oil in Global Energy Future
Despite the International Energy Agency’s projection of a decline in global oil demand due to the rapid adoption of electric vehicles, OPEC forecasts an increase in oil demand by 2.25 million barrels per day in 2024 and 1.85 million bpd in 2025. This rise is attributed to industrial, construction, and agricultural activities, especially in non-OECD countries.
Al-Ghais also addressed the International Energy Agency’s forecast of declining global oil demand due to the rise of electric vehicles. Contrary to this, OPEC anticipates an increase in oil demand driven by industrial and agricultural activities in rapidly developing regions like China, India, and Latin America. The expansion of petrochemical capacities in these non-OECD countries is expected to further boost global oil demand.
The OPEC chief emphasized that the versatility of petroleum products makes them indispensable across various industries, from manufacturing to transportation. He pointed out that the expansion of electricity grids and the installation of necessary infrastructure heavily depend on petroleum-derived products. This reliance underscores the interconnected nature of oil with other energy sectors.
To meet future energy demands and ensure energy security, Al-Ghais called for sustained investment in the oil industry. He warned that halting new oil projects could jeopardize the production of vital oil products necessary for the smooth functioning and expansion of electricity grids. Al-Ghais reiterated the need for a balanced energy approach that includes all sources to tackle energy poverty and reduce emissions.
Oil will remain a cornerstone of global energy strategies, with its critical role in various sectors necessitating continued investment to ensure stable and secure energy supplies as the world transitions towards a more diversified energy mix.
“It is important to also consider the multitude of petroleum products in the transmission of electricity, which are utilized in manufacturing, maintaining and installing cables, overhead lines, pylons, transformers,
