Jun 12, 2025
OPEC leader asserts that the rise in oil demand is permanent.
OPEC's secretary-general, Haitham Al Ghais, stated this week that crude oil demand will continue to rise in the coming decades due to population growth, predicting a 24% increase by 2050. He emphasized that there is no imminent peak in oil demand at the Canadian Global Energy Show, as reported by Reuters. Al Ghais reiterated concerns about the negative effects of underinvestment in new oil and gas supplies, a warning OPEC has consistently made amid pressure from anti-oil activists influencing many developed governments to push the industry away from its primary business.
He mentioned that the global investment required for new oil and gas over the next 25 years is $17.4 trillion. In comparison, the investment needed to achieve a net-zero global economy is estimated at $110 trillion from 2021 to 2050, with this figure being revised upwards repeatedly over the past three years.
OPEC predicts that global oil demand will increase by 1.3 million barrels per day in both 2025 and 2026, contrasting with the International Energy Agency’s (IEA) forecast of less than 1 million bpd growth for this year. Although demand increased by 990,000 bpd in the first quarter, the IEA expects this growth to decelerate significantly to just 650,000 bpd for the rest of the year.
OPEC also noted earlier this year that supply from non-OPEC producers is declining. In its May oil market report, OPEC indicated that reduced spending in upstream operations, amid falling oil prices, would slow the growth of oil supply from outside the OPEC+ alliance this year and next.
He mentioned that the global investment required for new oil and gas over the next 25 years is $17.4 trillion. In comparison, the investment needed to achieve a net-zero global economy is estimated at $110 trillion from 2021 to 2050, with this figure being revised upwards repeatedly over the past three years.
OPEC predicts that global oil demand will increase by 1.3 million barrels per day in both 2025 and 2026, contrasting with the International Energy Agency’s (IEA) forecast of less than 1 million bpd growth for this year. Although demand increased by 990,000 bpd in the first quarter, the IEA expects this growth to decelerate significantly to just 650,000 bpd for the rest of the year.
OPEC also noted earlier this year that supply from non-OPEC producers is declining. In its May oil market report, OPEC indicated that reduced spending in upstream operations, amid falling oil prices, would slow the growth of oil supply from outside the OPEC+ alliance this year and next.