IEA: Demand for oil, energy likely to be 45% lower by 2050

The International Energy Agency (IEA) expects global demand for both oil and gas to peak by 2030, in light of current policies to eliminate carbon emissions and efforts to combat climate change.

Stronger action to tackle climate change would mean clear declines in demand for both fuels, the IEA said.

Meanwhile, if governments deliver in full on their national energy and climate pledges, demand would fall 45% below today's level by 2050, the agency added in a report published today, Nov. 23.

“In a pathway to reaching net zero emissions by mid-century, which is necessary to keep the goal of limiting global warming to 1.5 °C within reach, oil and gas use would decline by more than 75% by 2050,” the agency said.

“The USD 800 billion currently invested in the oil and gas sector each year is double what is required in 2030 on a pathway that limits warming to 1.5 °C. In that scenario, declines in demand are sufficiently steep that no new long-lead-time conventional oil and gas projects are needed. Some existing oil and gas production would even need to be shut in,” it added.

Source: Argaam