Even after 2050, global oil demand is set to continue to rise. It is because renewables cannot entirely replace fossil fuels. Energy markets expert Anas Alhajji said during a recent energy conference hosted by Nigeria.
“The impact of climate change policies on oil demand is highly exaggerated. The impact is mostly on-demand growth, not on-demand itself,”
This is what Alhajji said during a keynote speech. This is at the event mainly focusing on the impact of the energy transition on oil-dependent economies. This was carried by Nigerian outlet Energy Frontier.
The world will need all energy sources even in three decades, the expert said. While technology will be a key enabler of the energy transition, it has its limits, Alhajji noted.
“African countries can reduce their carbon footprint by focusing on energy efficiency and the low hanging fruits, save oil & gas for exports or value-added industries and place solar and wind projects strategically.”
Many analysts and forecasters expect global demand to peak at some point in the 2030s, or even earlier.
Last year, even OPEC put a timeline to peak oil demand. OPEC said it expects global oil demand to exceed the pre-pandemic levels in 2022. In addition to that, they mentioned growing steadily until the late 2030s. It will begin to plateau in a major shift in its forecast that put a timeline to peak demand.
This year, the energy transition and the fight against climate change have become even more topical than during last year’s crisis. Analysts and forecasters are trying to understand and predict how the world’s still significant need for oil would reconcile with the net-zero targets that many countries have already set for 2050, or 2060 in China’s case.
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Source: Oil Price
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