With aggressive efforts to reduce carbon emissions and boost the use of renewable energy, the expectations are that global oil use will drop drastically in the upcoming decades. But, gas and oil giant Exxon Mobil Corporation doesn’t share the same opinion.
In the 2024 edition of its Global Outlook, Exxon shared that they believe global oil use will remain steady through 2050. They predict that the current demand of 100 million barrels a day will not change a lot in the next 25 years due to its use in industry and heavy-duty transportation.
The International Energy Agency previously stated that in order to get the global warming levels down to their pre-industrial levels, the global use of oil will need to come down to 24 million barrels a day, a 75% drop, by 2025. Judging by the current indicators, Chris Birdsall, Exxon’s director of economics and energy, believes that won’t be the case.
“The IEA says, as do we, that the world is not on that pathway,” Birdsall stated. “We have to be crystal clear on the path the world is on. Otherwise, we delude ourselves.”
Birdsall also added that the world is heading towards a scenario in which there will be a high demand for oil but a low supply because of a lack of investment in fossil fuel technology. According to him, this could cause soaring prices that would have serious consequences on the global economy.
Exxon isn’t alone in predicting a steady use of oil in the future. OPEC estimates that 116 million barrels will be used in 2045, while Enbridge believes the number will come at 110 million barrels.