The Organization of Petroleum Exporting Countries (OPEC) has labeled the idea of phasing out fossil fuels as a “fantasy.”
In its annual report on global oil demand, OPEC forecasts continued growth in crude oil consumption until 2050. This projection contradicts the symbolic deadline for combating climate change set by many experts and policymakers.
OPEC expects oil demand to increase by 17% between 2023 and 2050. The organization predicts daily consumption will rise from 102.2 million barrels to 120.1 million barrels.
OPEC has also revised its 2045 forecast upward, now anticipating a demand of 118.9 million barrels per day. These projections clash with those of the International Energy Agency (IEA).
The IEA foresees peak demand for all fossil fuels occurring this decade. It attributes the subsequent decline to the rise of electric vehicles and clean energy sources.
OPEC, led by Saudi Arabia, often criticizes measures aimed at accelerating the energy transition. The organization argues that the gradual phase-out of oil and gas is not aligned with reality.
OPEC’s Contradictory Stance on Energy Transition
This stance contradicts the goals set at the UN climate conference in Dubai last year. The COP28 conference agreed to gradually abandon fossil fuels and triple renewable energy capacity by 2030.
These measures aim to achieve carbon neutrality by 2050, following recommendations from climate experts. OPEC acknowledges that combined wind and solar energy demand will quintuple between 2023 and 2050.
OPEC cites global population growth as a key factor driving oil and energy demand. The world’s population is expected to increase from 8 billion to 9.7 billion by 2050.
The organization predicts the strongest demand growth in the petrochemicals, road transport, and aviation sectors. Despite the rise of electric vehicles, OPEC believes combustion engine vehicles will continue to dominate road transport.
The organization expects non-OECD countries, particularly India, to drive oil demand growth. Demand may decrease in more developed countries after 2030.
OPEC’s projections highlight the ongoing debate between fossil fuel producers and climate advocates. The organization’s stance underscores the challenges in transitioning to renewable energy sources while meeting global energy demands.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error
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