According to the organization’s annual report on expectations Oil Global energy demand is expected to grow to 301 million barrels of oil equivalent per day in 2023 and 374 million barrels of oil equivalent per day in 2050, amid strong global economic growth averaging 2.9 percent per year between 2023 and 2050, according to the World Bank’s 2024 Energy Outlook, which was launched in Brazil on Tuesday.
She explained OPEC Energy demand growth will be led by developing regions (non-OECD countries), with an increase of 73.5 million barrels of oil equivalent per day between 2023 and 2050.
The report indicated that about 30 percent of the growth in energy demand from non-OECD countries will come from India Alone.
The report also indicated that the contribution of OECD countries to the growth in energy demand will decline slightly, compared to an increase in demand from countries outside the organization, whose contribution to the growth in global energy demand will increase by about 7 percent by 2050.
Demand for energy resources
OPEC’s report said that, with the exception of coal, demand for all basic fuels is expected to increase.
The largest increase in energy demand is expected to come from other renewable sources, particularly wind and solar, with absolute growth of about 43 million barrels of oil equivalent per day, expanding from 9.6 million barrels of oil equivalent per day in 2023 to 52.4 million barrels of oil equivalent per day in 2050, according to the report.
The second largest increase in demand for energy sources is expected to come from Natural gaswhere demand will increase by about 20.5 million barrels of oil equivalent per day until 2050.
Demand for oil is expected to grow significantly, increasing by about 16.7 million barrels of oil equivalent per day.
The increase in the period 2023-2050 is expected to come from nuclear power (9.6 million barrels of oil equivalent per day), biomass-generated power (8.2 million barrels of oil equivalent per day), and hydropower (4 million barrels of oil equivalent per day).
Given tight energy policies in most regions, coal demand is expected to fall by about 29 million barrels of oil equivalent per day between 2023 and 2050, according to OPEC.
The report explains that reliance on oil and gas will remain central to ensuring global energy security, with fossil fuel sources expected to constitute more than 50 percent of the global energy mix in 2050, indicating that oil and gas will continue to play a strong role in the future.
To meet this demand, the oil sector alone will need massive investments of up to $17.4 trillion by 2050, according to the report.
OPEC expects global oil demand to reach 112.3 million barrels per day in 2029, a strong increase of 10.1 million barrels per day, compared to 2023.
In the long term, global oil demand is expected to rise to about 120.1 million barrels per day in 2050, according to the report.
The report also expected that the global GDP would grow at an annual average of 2.9 percent between 2023 and 2050, and the size of the global economy is expected to double from $165 trillion in 2023 to $358 trillion in 2050.
