High oil demand to continue in coming years – OPEC

VIENNA, OPEC Secretary-General Mohammad Barkindo said Tuesday that demand for oil will continue to grow in the coming years.

Speaking at a press conference launching the 2019 OPEC World Oil Outlook (WOO 2019, Barkindo said total primary energy demand is set to expand by a robust 25 percent between 2018 and 2040.

Oil demand is forecast to reach 110.6 million barrels a day (mb/d) by 2040. The non-OECD drives oil demand with expected growth of 21.4 mb/d by 2040, compared to 2018, whereas the OECD region is estimated to contract by 9.6 mb/d, he added.

“Total primary energy demand is set to expand by a robust 25% between 2018 and 2040. This will be driven by expansion in the global economy, which in 2040 is expected to be double the size it was in 2018, and population growth, which is projected to reach around 9.2 billion in 2040, an increase of around 1.5 billion from today’s level,” he noted.

On the supply side, non-OPEC liquids supply is projected to grow by 9.9 mb/d between 2018 and 2024, he added.

Demand for OPEC liquids is projected to increase to around 44.4 mb/d in 2040, up from 36.6 mb/d in 2018, Barkindo pointed out.

Long-term oil demand growth comes mainly from petrochemicals at 4.1 mb/d, road transportation at 2.9 mb/d and aviation at 2.4 mb/d, he said.

In the road transportation sector, which will remain by far the largest sector for oil demand, the total vehicle fleet, including passenger and commercial vehicles, is estimated to grow by more than 1 billion to around 2.4 billion vehicles on the road by 2040, he said.

The OPEC chief said it is also important to stress that the World Oil Outlook is not about making predictions. “We believe that the Outlook should be viewed as a tool of reference to stimulate informed discussion and debate among industry stakeholders, which we hope will lead to a better understanding of the future of the industry, and, hence, allow us to develop optimal strategies,” he said.

Source: Kuwait News Agency