Oil demand to plateau after 2035: OPEC

Demand for oil will rise by 1.7 million barrels per day in 2023 to 101.6 million bpd, as the demand will grow sharply in the next few years, said The Organization of the Petroleum Exporting Countries (OPEC) in its 2021 World Oil Outlook.

The organisation said that there will be a robust growth for both 2021-2022, which will push the demand back to pre pandemic level. They added that the world needs to invest in production to avoid any shortages, despite the ongoing energy transition to non fossil fuels.

"Energy and oil demand have picked up significantly in 2021 after the massive drop in 2020," OPEC Secretary General Mohammad Barkindo wrote in the foreword to the report. "Continued expansion is forecast for the longer term."

The OPEC has also lowered  its estimates for longer-term oil demand, citing changes to consumer behaviour such as working from home. They said that the global demand will plateau after 2035.

The organisation said that ‘other renewables’   which combines mainly solar, wind and geothermal energy will see the largest growth in both absolute and percentage terms, leading to a share over 10 percent by 2045. Meanwhile, oil will account for over a 28 percent share in 2045.