Oil demand to remain healthy into 2022 despite renewables growth – OPEC

Demand for oil will continue to grow at a ‘healthy pace’ for the next five years despite the continued rapid growth in renewable energy, said OPEC secretary general Mohammad Barkindo.

Speaking in Kuwait at a preview event for OPEC’s 2017 World Oil Outlook, set to be released in November, Barkindo said crude demand will climb an average 1.2 million barrels per day (bpd) through 2022 before slowing to 300,000 bpd in 2035 to 2040.

“The medium-term outlook for oil demand is for a significant increase to 2022 with a healthy average annual increase,” said Barkindo. “In the global energy mix, we see fossil fuels retaining a dominant role albeit with a declining overall share through 2040.”

The share of fossil fuels in the global energy mix will fall to below 80% by 2020 and decrease to 75.4% by 2040, he added.

Although experiencing the most rapid growth of any energy source, increasing by an average of 6.8% a year from 2015 to 2040, renewables will still only account for less than 5.5% of the world’s total energy mix by 2040.

OPEC plans to meet next month in Vienna to discuss the possibility of extending current output cuts amongst its members, Russia and other leading global oil suppliers.