The Organisation of Petroleum Exporting Countries (OPEC) has projected a 28 per cent expansion in the global energy demand by 2045.
OPEC Secretary-General Mohammad Sanusi Barkindo, in an opening remark at the ongoing 23rd World Petroleum Congress (WPC), in Houston, USA, said what is presently clear is that the world will need more energy in the future.
This is even as he said an investment of $11.8 trillion is needed between now and 2045 in the upstream midstream and downstream oil sector.
Barkindo, in a paper titled ‘23rd World Petroleum Congress Plenary Session 7 Energy Transition: Scenarios for the Future,’ noted that OPEC recently released the World Oil Outlook (WOO) 2021.
He said the WOO sees global energy demand expanding by 28% by 2045 and that this underlines the need to have a holistic view of the energy sector and appreciate what each energy source can offer.
He said for oil and gas, there are some who believe that the industries should not be part of the energy future.
He said those with this belief are of the opinion that the oil and gas industries should be consigned to the ‘dustbin of history and that the group is of the view that the future is one that can be dominated by renewables and electric vehicles.
“It is important to state clearly that the science does not tell us this, and the statistics related to the blight of energy poverty do not tell us this either.
“Renewables are coming of age, with wind and solar expanding quickly, but – even by 2045 – in our WOO they are only estimated to make up around 24% of the global energy mix.
“Oil and gas combined are forecast to still supply over 50% of the world’s energy needs by 2045, with oil at around 28% and gas at just over 24%.
“It is important to stress that many OPEC member countries have great solar and wind resources, and huge investments are being made in this field.
“OPEC welcomes the development of renewables, which will be vital to help quench the world’s growing thirst for energy.
“In terms of electric vehicles, there is no doubt that they will continue to see expansion in the transportation sector.
“In our WOO, the share of electric vehicles in the total road transportation fleet is projected to expand to close to 20% in 2045. We support their development in a sustainable manner.
“However, for many of the world’s population, electric vehicles do not offer a viable alternative to the internal combustion engine, primarily due to cost.
“There is also debate about how environmentally friendly they are, considering their build process, especially the required batteries, mining for minerals and metals, and the sourcing of the vehicles’ electricity.
“The key point to make is that the challenge of tackling emissions has many paths. It is not just one path for all, whether that be a country or an industry.
“We fully believe that the oil and gas industries can be part of the solution to tackling climate change, and evolving the energy transition,” he added.
