OPEC says oil and gas to dominate global energy mix through 2050

Global demand for oil and natural gas is expected to continue growing through 2050 despite rapid expansion in renewable energy, according to the latest long-term outlook published by the OPEC on June 18.

The producer group said oil and gas would together account for more than half of the world's energy mix between 2025 and 2050, underscoring the continued role of fossil fuels in meeting global energy needs.

In its World Oil Outlook (WOO), OPEC projected that demand for all major energy sources except coal would increase over the next 25 years. The organisation said demand for renewable energy would nearly double, rising to 99.1 million barrels of oil equivalent per day (boe/d) by 2050 from 47.8 million boe/d in 2025.

Solar and wind power are expected to drive most of that growth, lifting renewables' share of the global energy mix to 25.9% by 2050 from 15.3% in 2025. Even so, OPEC said renewables would still account for a smaller share of energy consumption than oil.

The group forecast that oil demand would rise by 18.6 million boe/d by 2050, while natural gas demand would increase by 19.3 million boe/d, citing strong demand for reliable and affordable energy supplies.

OPEC also expects nuclear power to expand its role in the global energy system, with its share of the energy mix rising to around 6.7% by 2050 from 4.8% in 2025.

Coal is the only major fuel expected to see declining demand. OPEC forecast coal consumption would fall to 53.3 million boe/d by 2050 from 82.6 million boe/d in 2025, attributing the decline to climate policies and the growing use of alternative energy sources.

By Aghakazim Guliyev