OPEC: Global crude oil demand will rise to 116m bpd in 2045

The Organisation of the Petroleum Exporting Countries (OPEC) says world demand for oil is projected to rise to an estimated 116 million barrels per day (bpd) in 2045.

Haitham Al Ghais, OPEC secretary-general, spoke on Tuesday in Abuja at the ongoing 23rd Nigerian Oil and Gas (NOG) Energy Week Conference and Exhibition.

The conference is themed ‘Showcasing Opportunities, Driving Investment, Meeting Energy Demand’.

Addressing the conference via teleconference, Al Ghais said the world economy is expected to double in size — growing from $138 trillion in 2023 to $270 trillion in 2045.

He explained that the oil cartel forecasted a rapidly expanding world population that would surpass 9.5 billion people.

“Why are we optimistic? Let us consider these statistics, which are based on OPEC’s World Oil Outlook,” he said.

“Urbanisation alone will account for over half a billion people moving to cities around the world by 2030.

“This data tells us that the world will require all forms of energy to meet long-term energy needs.

“Oil and gas will remain the predominant fuels in the energy mix.

“In fact, oil alone will retain its share at almost 30 per cent in 2045 as world demand for oil soars to an estimated 116 million barrels per day (mb/d) by that time.”

‘OIL INDUSTRY TO INCREASE INVESTMENT LEVELS’

Al Ghais said in the upcoming years, the industry will need to significantly increase investment levels in order to keep up with the rapid and robust growth in energy consumption.

He said according to its research, the total oil-related investment requirements between 2024 and 2045 would be $14 trillion or about $610 billion on average per year.

“Securing this vital funding is essential to maintaining security of supply and avoiding unwanted volatility,” Al Ghais said.

“In spite of these facts, I am certain you are aware of some recent predictions for peak demand by 2030 and calls for a discontinuation of investment in hydrocarbons.” 

Also, the secretary-general said the rush to adopt “net-zero” strategies was misguided and impractical. 

He said developing countries would persist in balancing priorities between developing their national economies and addressing climate change.

In this regard, Al Ghais pledged that OPEC and its member countries would keep pushing to advocate for a fair process for adaptation, mitigation and means of implementation with regard to climate finance and technology.

The secretary-general said an estimated 675 million people lack access to basic forms of energy and 2.3 billion without access to clean cooking fuels.

He asked world leaders to unite and advocate for the necessary support and resources needed to make a difference in addressing the crucial matter.

“Looking ahead, OPEC will continue to enhance dialogue and cooperation with all of its energy partners, including in Africa,” he said. 

Al Ghais, while commending President Bola Tinubu, appreciated Nigeria’s unwavering commitment to OPEC and the declaration of cooperation (DoC).