The Future of Oil in Energy Pathways
In a statement from the OPEC secretary-general, Haitham Al-Ghais emphasized the continued importance of oil in future energy pathways. Petroleum products are deemed essential for various sectors to function effectively. Al-Ghais highlighted that member countries of the oil producers alliance have clear national electrification plans aimed at reducing emissions.
Global Oil Demand Outlook
The International Energy Agency projected a decline in global oil demand due to the rapid adoption of electric vehicles. However, OPEC stated that world oil demand is expected to rise by 2.25 million barrels per day in 2024 and 1.85 million bpd in 2025.
The Role of Petroleum Products in Electricity Transmission
Al-Ghais noted that oil is a vital component in future energy pathways, especially in electricity transmission. Petroleum products play a crucial role in various sectors and industries, making them indispensable for infrastructure development.
Challenges and Opportunities in the Energy Sector
The expansion of electricity grids requires the use of petroleum-derived products for insulation and operation. Al-Ghais emphasized the need for more investments in the oil industry to meet rising demand and ensure market stability.
Market Fundamentals and Future Outlook
OPEC remains focused on market fundamentals to ensure a stable and resilient energy market. Al-Ghais believes that demand for oil will continue to grow, especially with the rebound in the travel industry. Efforts to reduce emissions and invest in energy sources are crucial for the future sustainability of the industry.