Global Energy Outlook: Oil Demand on the Rise Amid Climate Concerns

The International Energy Agency (IEA) forecasts continued growth in global oil demand until 2050, deviating from previous clean energy transition expectations. Amidst U.S. criticism, the agency highlights that current global policies are insufficient to meet climate targets, predicting oil demand to peak around 2030 under different scenarios.

The International Energy Agency (IEA) released its World Energy Outlook, forecasting continued growth in global oil and gas demand until 2050. This projection marks a shift from previous expectations of a swift transition to cleaner fuels, following criticism of the agency's climate focus from the United States.

The Paris-based watchdog also warned that existing policies are unlikely to keep global temperature rise below the 1.5-degree Celsius target set during the Paris climate talks to avert severe climate impacts. Under current policy scenarios, oil demand is expected to climb to 113 million barrels per day by mid-century, a significant increase from 2024 levels.

The report highlighted a surge in liquefied natural gas investments, noting a 50% capacity rise by 2030. With energy demand rising, driven by power-hungry data centers and AI, the report emphasizes the need for accelerated global efforts to bridge the gap to the 1.5-degree goal, especially as COP30 approaches in Brazil.

(With inputs from agencies.)