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Oil Industry Leaders Remain Confident About Long-Term Demand

Oil and gas industry leaders are confident in the long-term resilience of oil demand despite challenges from the energy transition.

This is the message coming out of the inaugural edition of the Energy Asia conference that took place this week in Malaysia.

“Energy transition is going to take a lot longer, it’s going to cost a lot more money and need new technologies that don’t even exist today,” Hess Corp. chief executive John Hess said, as quoted by CNBC.

“Liquids are projected to remain the world’s leading energy source in 2050, even as demand growth slows beyond 2025,” a senior Exxon advisor told CNBC.

“Overall, demand for liquids is expected to rise by about 15 million barrels per day by 2050. Almost all the growth will come from the emerging markets of Asia, Africa, the Middle East and Latin America,” Erin McGrath also said.

Earlier this week, the secretary-general of OPEC also demonstrated optimism, saying OPEC forecast oil demand to expand to 110 million barrels daily by 2045.

Unsurprisingly, Asia will continue to be the biggest driver of oil demand over the long term, with S&P Global’s Daniel Yergin saying that “This is the region where the growth in energy demand will be, and more to come.”

TotalEnergies’ Patrick Pouyanne agrees. “The demand is in Asia. The demand is here, you have 5 billion people moving population, [asking] for a better way of life. And so this is where we must look to the future,” he said, as quoted by CNBC.

Meanwhile, Aramco’s chief executive Amin Nasser pointed out the selective narrative of the energy transition.

“Existing transition policies rightly attempt to address environmental sustainability, but the equally critical issues of energy security and affordability are under-emphasised,” he said at the event, suggesting this would ensure the longevity of oil demand.


By Irina Slav for Oilprice.com

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  • Paul Smith on June 30 2023 said:
    What oil executive would say otherwise? Who would say pull your investments because we're in trouble?
  • George Doolittle on June 30 2023 said:
    Demand for diesel engines have never been better I would agree with that. Long $f Ford

    Strong buy
  • Mamdouh Salameh on June 30 2023 said:
    It is inevitable that oil and gas will continue to drive the global economy throughout the 21st century and probably far beyond. That is what logic and market realities dictate.

    This is enhanced by the reality that the notions of total global energy transition and net-zero emissions are myths and the fact that renewables on their own are incapable of satisfying global demand for electricity because of their intermittent nature.

    Global oil demand is expected to rise by 15 million barrels a day (mbd) by 2050 according to ExxonMobil while OPEC sees demand expanding to 110 mbd by 2045.

    Either way demand growth is the name of the game with Asia led by China will be where the growth in energy demand will be. After all Asia accounts for more than 51% of global GDP, the fastest economic growth and the lowest inflation rates in the world.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert
  • Mike Lewicki on June 30 2023 said:
    for 500 years minimum

Leave a comment

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