"The worldwide peak in demand for oil is “in sight” and could come before the
end of this decade, the global energy watchdog has said.
The International Energy Agency said the bounceback in oil demand that followed
the easing of Covid restrictions was likely to end this year and growth would
slow from next year.
A potential worsening in the global economy and the long-term transition to
cleaner energy sources are expected to hurt demand.
The IEA’s executive director, Fatih Birol, said: “The shift to a clean energy
economy is picking up pace, with a peak in global oil demand in sight before
the end of this decade as electric vehicles, energy efficiency and other
Global oil demand would grow by 2.4m barrels per day (bpd) in 2023 to a record
102.3m, the IEA said in its monthly report on Wednesday.
However, the Paris-based agency expects economic headwinds to reduce growth to
860,000 bpd next year, and increasing use of electric vehicles to help to
reduce that to 400,000 bpd in 2028 for overall demand of 105.7m.
“The slowdown has been hastened by Russia’s invasion of Ukraine amid heightened
energy security concerns and by governments’ post-Covid recovery spending
plans, with more than $2tn mobilised for clean energy investments by 2030,” the
Demand for oil from combustible fossil fuels, excluding biofuels, petrochemical
feedstocks and other non-energy uses, was likely to peak at 81.6m bpd in 2028,
*** Xanni ***
Chief Scientist, Xanadu
Partner, Glass Wings
Manager, Serious Cybernetics