Advertisement

Updated September 29th, 2021 at 13:34 IST

OPEC says oil to remain primary energy source till 2045, despite alternate energy push

OPEC revealed that between the years 2020 and 2045, worldwide primary energy consumption is anticipated to grow by 28% due to expansion in the world economy

Reported by: Anwesha Majumdar
OPEC
Image: Shutterstock/AP | Image:self
Advertisement

The Organisation of the Petroleum Exporting Countries (OPEC) stated on Tuesday that oil will be the primary source of energy in the coming decades, despite the inescapable advancement of alternative energy sources and technologies. 

OPEC noted in its annual World Oil Outlook that more electric vehicles running on roads, and several initiatives for alternate and renewable energy will see the demand for oil drop in several developed countries. However, OPEC informed that the energy demand for developing economies in other areas of the globe indicate that oil will remain the world's top energy source until 2045. 

Price of oil hits three-year high

OPEC's long-term report comes as economies rebound from the worst effects of the worldwide COVID-19 pandemic, which clogged supply routes and caused shortages of everything, including oil. On Tuesday, Brent crude hit a three-year peak of $80 per barrel, with the US oil benchmark crude not far behind. As Hurricane Ida smashed into a vital seaport that used to function as the major support for the United States' deepwater offshore oil and gas sector in the Gulf of Mexico, the supply scenario has worsened for the time being. 

The OPEC report further revealed that between 2020 and 2045, worldwide primary energy consumption is anticipated to grow by 28% due to the expected expansion in the world economy and the inclusion of roughly 1.7 billion people across the world. OPEC further stated that just coal will be used less, whereas other energy sources will experience rising demands, although renewables, nuclear, and natural gas usage will increase. 

Countries to initiate green energy push

The OPEC's 340-page report tries to depict the reality that there will be a decline in oil demand in the 38-member countries of the Organisation for Economic Development and Cooperation, in an attempt to combat climate change. The countries will replace oil with renewables and alternative fuels in automobiles, aircraft, and ships. It predicts in 2045, the global fleet of vehicles would have grown by 1.1 billion to 2.6 billion, with 500 million electric cars accounting for 20% of all vehicles. 

However, increasing populations and growth of middle classes in the rest of the globe, notably China and India, will result in higher demand for oil during 2020 and 2045, according to a report released by OPEC's secretariat in Vienna. By the year 2045, oil will provide 28.1% of global energy requirements, dropping from 30% in 2020. Natural gas will provide 24.4% and coal will comprise 17.4%. The rest will be made up of hydroelectric, nuclear, and biomass sources of energy, as well as other renewable energy sources like wind and solar. 

According to the report, increased awareness to intensify climate change action implementation has led to new policy objectives to achieve carbon neutrality by 2050. The European Union, the United States, Japan, the United Kingdom, Canada, and Brazil are among some countries that have suggested ambitious targets and frameworks to tackle global warming. 

OPEC, on the other hand, expressed serious doubts that whether all of these aggressive climate-mitigation pledges would be reached within the projected timeframe. The United Kingdom will organise the 26th United Nations Climate Change Conference in Glasgow, Scotland, from October 31 to November 12, when country leaders will investigate methods to decrease greenhouse gas emissions and prevent global warming. 

(Image: Shutterstock/AP)

Advertisement

Published September 29th, 2021 at 13:34 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement

Trending Quicks

Chandrakant Pandit and Gautam Gambhir
3 minutes ago
Erode MDMK MP Ganeshamurthi, 77, Dies in Hospital After Alleged Suicide Attempt At House
4 minutes ago
Eknath Shinde
7 minutes ago
High-net-worth women show a nuanced approach to wealth with interest in alternative investments and cautious risk tolerance.
12 minutes ago
Finance Minister Nirmala Sitharaman
22 minutes ago
UFC Exclusive Erin Blanchfield
25 minutes ago
Shahjahan Sheikh in CBI Custody: First Visual Emerges | WATCH
27 minutes ago
Advertisement
Advertisement
Advertisement
Whatsapp logo