Oil will remain the primary source of energy for decades –

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OPEC confirmed on Wednesday that oil will continue to be the world’s primary source of energy for decades, especially as the world’s less wealthy countries seek to achieve higher standards of living and growth.

OPEC says more electric cars on the road, combined with pressures to provide alternative and renewable energy, will all lead to an era of declining demand for oil in rich countries.

However, OPEC also said in its annual report on the global oil outlook that the energy needs of the expanding economies in other parts of the world still confirm that oil is the primary source of energy until 2045.

The report comes in light of a sharp rise in oil and natural gas prices, as the price of Brent crude reached more than $80 per barrel on Tuesday, its highest level in three years, while the US oil index rose to $75.92, which is also its highest level in three years. Years”.

OPEC slowly increased production after deep cuts in 2020 during the worst periods of the pandemic.

The report stated: “What is clear in this year’s global oil outlook is that demand for energy and oil has risen significantly in 2021, after a massive decline in 2020, and the expansion is expected to continue over the long term.”

The report also stated: “Global demand for primary energy is expected to increase by 28% between 2020 and 2045, together with all other necessary energy sources, driven by an expected doubling of the size of the global economy and the addition of about 1.7 billion people to the worldwide population by 2045″.

The group stated that only coal will see less use, while other energy sources will see increasing demand, although the share will shift to include a greater percentage of renewable energy sources, nuclear and natural gas.

The report predicts that the world’s vehicle fleet will grow by 1.1 billion to reach 2.6 billion by the end of the report’s time frame in 2045, and that 500 million of them will be electric-powered, i.e. 20% of all vehicles.

But growing populations and expanding middle classes in the rest of the world, including China and India, will mean increased demand for oil between 2020 and 2045, although much of that increase will occur in the first part of that period, according to the report issued by the OPEC secretariat in Vienna.

Oil will meet 28.1% of global energy demand by 2045, down from 30% in 2020, but it will be superior to natural gas by 24.4% and coal by 17.4%.

Hydroelectric, nuclear, biomass and other renewable energy sources such as wind and solar make up the rest. One of the main reasons cited for the decline in energy use in the more developed world is demography: a shrinking and aging population, which in turn leads to lower economic growth.

Besides, the report noted that growing awareness of the need to accelerate action to address climate change has led to intentions to pursue an ambitious new policy to reach net-zero emissions by 2050. The European Union, the United States, Japan, the United Kingdom, Canada and Brazil have proposed roadmaps to achieve the goals. New.

However, the Organization of the Petroleum Exporting Countries (OPEC) noted “significant doubts about whether all ambitious climate change mitigation commitments will be met in the proposed time frame.”

For example, in July the European Union launched a package called “55% fit” (fit for 55), in which the 27-nation bloc pledged to reduce emissions by 55% below 1990 levels by 2030.

OPEC said the plan “remains a plan for now and still needs to be negotiated and approved by all EU member states, leaving ample room for exceptions and mitigations.”