Energy demand to soar to 23% by 2045 —OPEC

The Organisation of the Petroleum Exporting Countries (OPEC) says the global energy demand will soar to 23 percent by 2045.

It also emphasised that the growth in energy demand will be fuelled by a world economy expected to double in size, which is expected to grow from $138 trillion in 2023 to $270 trillion in 2045.

OPEC Secretary General, Haitham Al-Ghais, stated this on Tuesday while giving a virtual keynote address at the opening ceremony of the ongoing 2024 Nigeria Oil and Gas Conference and Exhibition (NOG Energy Week), in Abuja.

“We also forecast a rapidly expanding world population that will surpass 9.5 billion people, with most growth seen in non-OECD developing countries. Urbanisation alone will account for over half a billion people moving to cities around the world by 2030. Oil and gas will remain the predominant fuels in the energy mix. In fact, oil alone will retain its share at almost 30 percent in 2045 as world demand for oil soars to an estimated 116 million barrels per day (mb/d) by that time,” he said.

To meet the projected growth in energy consumption, the OPEC chief said the industry will require $14 trillion cumulative oil-related investments from now to 2045, representing about $610 billion on average per year.

“This data tells us that the world will require all forms of energy to meet long-term energy needs and securing this vital funding is essential to maintaining security of supply and avoiding unwanted volatility,” he said.

Al Ghais, who expressed concern on the predictions for peak demand by 2030, called for a discontinuation of investment in hydrocarbons, describing the rush to adoption of “Net-Zero” strategies as misguided and simply not realistic, saying developing countries continue to balance priorities between developing their national economies and addressing climate change.

To ensure Africa’s unique circumstances are respected and taken into consideration, Al Ghais, however, assured of OPEC and its member-countries continued dedication to advocate a balanced and fair process for adaptation, mitigation and the means of implementation, particularly with regard to climate finance and technology.

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