Abu Dhabi, UAE

In its annual outlook presented on Monday, OPEC increased its projections for the medium- and long-term global oil consumption and stated that $12.1 trillion in investments will be required to meet this demand despite the energy transition. 

Advertisment

According to the Organization of the Petroleum Exporting Countries' 2022 World Oil Outlook, oil demand will plateau before 2030 due to the growth of renewable energy sources and electric vehicles, in contradiction to other analysts' predictions. 

The 13 members of OPEC, who depend on oil revenue, would benefit from another decade of rising oil consumption. The group contends that investors' attention to economic, social, and governance (ESG) issues has made the investment shortfall worse and that oil should be a part of the energy revolution.

"The overall investment number for the oil sector is $12.1 trillion out to 2045," OPEC Secretary General Haitham Al Ghais wrote in the foreword to the report, which said the figure was up from last year's estimate.    

Advertisment

"However, chronic underinvestment into the global oil industry in recent years, due to industry downturns, the COVID-19 pandemic, as well as policies centred on ending financing in fossil fuel projects, is a major cause of concern."    

Also  Read: Italy's new right-wing government cracks down on illegal rave parties

When the epidemic affected demand in 2020, OPEC changed its tune and predicted that consumption would finally slow after years of expecting constant growth. The OPEC study upheld its belief that beyond 2035, global consumption will level. 

Advertisment

Other forecasts from businesses and banks indicate an earlier peak in oil demand. 

For the first time in its history of modelling, the International Energy Agency stated on Thursday that demand for all fossil fuels was about to peak, with oil consumption levelling off in the middle of the next decade.

(with inputs from agencies)