Oil stocks were slicker today as the Organization of the Petroleum Exporting Countries (OPEC) said peak oil demand had not yet been reached around the world.
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Rising Demand
BP (BP) stock was 0.8% higher with Shell (SHEL) also up 0.8% as OPEC, in its annual report, said despite the rise of renewable energy sources such as wind and solar to combat climate change, global oil demand will keep rising through to the middle of the century. It said there was no “peak in sight.”
The cartel increased its forecast, projecting oil demand will reach 113.3 million barrels a day in 2030 and nearly 123 million in 2050, up from 103.7 million barrels last year.
Oil is expected to hold nearly 30% of the energy mix, while combined with gas it will stay above 50% through the period.
“Oil underpins the global economy and is central to our daily lives,” OPEC said.
To meet future demand, OPEC said the oil sector must attract $18.2 trillion in investment over the next 25 years, most of it directed to the upstream segment, which covers exploration, drilling and extraction.
AI Expansion
It could be argued that OPEC, which consists of countries reliant on fossil fuel revenues, is unlikely to say anything different. Indeed, the International Energy Agency expects global oil demand growth to plateau by the end of the decade.
However, OPEC did say that demand for all major energy sources is set to rise through 2050, with the largest increases coming from renewables—mainly wind and solar—and natural gas. Nuclear energy demand is also expected to rebound.
Despite much volatility in recent months, largely as a result of President Trump’s tariff uncertainty and global conflicts such as those involving Israel and Iran, demand for energy over the long term is expected to come from the expansion of data centers, surging electricity use, and a global population increase.
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