Crude oil will remain the world’s economy life blood as Asian demand grows. “It is fossil fuels that will continue to play the leading role in satisfying world energy needs in the future.”
Oil prices will average $177 per barrel by 2040 and the world will need to find an additional 21m barrels per day (bpd) of crude over the next 25 years to meet demand from rising global populations and rapid economic growth in Asia, the Organization of Petroleum Exporting Countries (Opec) has said in its latest World Oil Outlook.
The findings of the report will come as a blow to climate change campaigners who are warning that unless serious action is taken to reduce green house emissions the world will face a catastrophic global warming shock beyond 2025.
Opec – which currently pumps about a third of the world’s oil – said that after the end of this decade the world will need to find an additional 1m bpd of crude annually through to 2040 when it forecasts that demand will reach 111.1m bpd up from about 90m bpd at current levels.
Although the figure is a slight downward revision from its previous report it highlights the continued dominant role that oil continues to play in the global energy mix despite warnings from the United Nations that urgent action is required to avoid a climate change catastrophe. According to Opec, Asia accounts for 71pc of demand growth in the developing world, with total global energy demand forecast to increase by 60pc through to 2040.
“It is fossil fuels that will continue to play the leading role in satisfying world energy needs in the future,” said Opec secretary general Abdalla Salem el-Badri on the publication of the 367-page report.