The secretary-general of OPEC, Haitham al-Ghais, recently made headlines at the Global Energy Show in Calgary by stating that global oil demand will continue to rise and that there is no peak in sight. He emphasized that the world will need to invest trillions of dollars to meet this growing demand. During his address, he forecasted a 24% increase in primary energy demand by 2050, which would push consumption to over 120 million barrels per day.
Al-Ghais highlighted that meeting this demand will require an investment of approximately $17.4 trillion over the coming decades. He remarked, “Simply put, ladies and gentlemen, there is no peak in oil demand on the horizon.” His comments come amid a backdrop of ongoing discussions about energy policies and climate change.
The OPEC leader criticized the International Energy Agency (IEA) for sending mixed messages regarding oil investments. He pointed out that the IEA had previously stated that oil should be a key part of energy security but later suggested that no new oil investments should occur under a net-zero scenario. Al-Ghais argued that such inconsistency undermines industry confidence.
He acknowledged that OPEC is committed to addressing climate change and supports the Paris Agreement. However, he expressed concerns about net-zero targets, describing them as “unrealistic” and disconnected from the current energy landscape. Al-Ghais stated that while OPEC members recognize the importance of renewable energy, they believe oil will still account for about 30% of the energy mix by 2050.
Lisa Baiton, president of the Canadian Association of Petroleum Producers, echoed Al-Ghais’s sentiments, stating that the market is shifting towards an “energy addition” rather than a transition. She noted that while renewable energy is growing, it will not replace the rising demand for traditional oil and gas.
Jon McKenzie, CEO of Cenovus Energy, added that the industry is capable of meeting these challenges and emphasized the need for increased investment. He believes that the oil and gas sector has the tools to improve productivity and manage costs effectively.
Overall, the discussions at the Global Energy Show reflect a significant moment in the ongoing dialogue about energy production, climate commitments, and the future of oil in a changing world.