Photo caption: OPEC Secretary-General, Haitham Al Ghais
*Criticizes IEA prediction of peak demand by 2030 in keynote speech at the Global Energy Show Canada
There is no peak in oil demand on the horizon and global demand could surpass 120 million barrels per day by 2050, says the head of the Organization of Petroleum Exporting Countries (OPEC).
Secretary general Haitham Al Ghais also took aim at net-zero targets during his keynote address at the Global Energy Show Canada in Calgary on Tuesday, and reiterated his previous criticism of the International Energy Agency (IEA)’s prediction that global oil demand could peak before 2030.
He said global demand for all forms of energy will increase by 24 per cent between now and 2050.
“OPEC’s forecasts are not based on ideology. They are based on data and analysis of data,” he said. “And they clearly indicate that oil will remain an integral part of the energy mix, at around 30 per cent, still in 2050. Simply put, ladies and gentlemen, there is no peak in oil demand on the horizon.”
Total global demand for oil in 2024 was a bit less than 103 million bbl/d, according to IEA figures.
Al Ghais also praised Canada as a major global oil supplier and said Alberta and OPEC share similar perspectives on technology and innovation.
He is set to meet with Alberta Premier Danielle Smith on the sidelines of the Global Energy Show this week.
“This will provide an opportunity to improve our understanding of the recent changes to the OPEC+ supply philosophy, ensuring Alberta is prepared for any implications it may have on global oil production and budgets,” a spokesman for Alberta Energy Minister Brian Jean said.
Global oil prices plunged to a four-year low in April after OPEC and its allies surprised markets by hiking output by 411,000 barrels per day for May — an amount that was three times more than what was previously planned for the month — in a move that coincided with the launch of United States President Donald Trump’s sweeping “Liberation Day” tariffs on trading partners.
Similar-sized production hikes planned for June and July continue to depress oil prices as OPEC+ accelerates plans to revive production that has been off-line for more than two years.
The eight OPEC+ members aim to gradually restore around 2.2 million barrels per day of production that was idled in 2022 in order to stabilize prices amid fears of a COVID-19-induced economic slowdown.
The latest hikes are also aimed at punishing overproduction by OPEC+ members Kazakhstan and Iraq, though Bloomberg News has also reported that Saudi Arabia is seeking to regain lost market share.
=== Financial Post ===
