On Thursday, June 13th local time, OPEC Secretary General Haitham Al Ghais issued a statement refuting the International Energy Agency's (IEA) prediction of a severe oversupply of oil.
He also pointed out that in order to prevent energy shortages, the world will still need to invest in fossil fuels in the coming decades.
Source: OPEC official website
Earlier this week, the International Energy Agency predicted in its 2024 interim oil market report that, driven by the expansion of production capacity in oil producing countries such as the United States, the global total oil supply capacity will approach the daily average of 114 million barrels by 2030, which is 8 million barrels higher than demand and may have a significant impact on the oil market.
The IEA believes that the strong demand for oil in Asia will be offset by factors such as electric vehicles and fuel efficiency upgrades. According to Fatih Birol, the Director of the International Energy Agency, global oil demand growth is slowing down and will peak in 2030 as the transition to clean energy advances and some major economies undergo structural changes.
In response, Gais stated that by 2045, the demand for oil in developing countries will increase by 25 million barrels per day, as billions of people need access to basic services such as electricity, gas, and transportation. "Those who deny this fact are laying the foundation for future energy shortages and fluctuations, and opening the door to widening the gap between 'energy rich countries' and' energy negative countries'."
The statement by Gais is titled "The peak of oil demand is not yet on the horizon (yet to come)," and he pointed out that "OPEC welcomes all the progress made in the renewable energy and electric vehicle sectors, but it is still far from enough to replace 80% of the energy structure (fossil fuels)."
"We should also remember that the development of renewable energy and electric vehicles also requires some petroleum related products, and their future expansion will increase oil demand," Gates called for "continued investment in the oil industry today, tomorrow, and in the coming decades."
"Everyone has the freedom to express their opinions, but what is important is that it must be based on the reality we see today," Gais said. "We need to prioritize energy security, utilize all available energy, achieve energy affordability, enhance sustainability, reduce emissions, and not restrict our energy choices as demand continues to expand."
Robert McNally, President of Rapidan Energy, a consulting firm, also believes that if more refineries are not built, transportation fuel shortages will occur by 2028. "I don't see any evidence of a peak demand coming soon. The speed of improving car energy efficiency is not fast enough, and the popularity of electric vehicles is not fast enough," he said