We see energy demand rising by 23% by 2045 – OPEC

The Organisation of the Petroleum Exporting Countries (OPEC) says energy demand will rise by an estimated 23 per cent by 2025.

OPEC says the rise will be fueled by a world economy that is expected to double in size, growing from $138 trillion dollars in 2023 to $270 trillion dollars in 2045.

The OPEC Secretary-General, Haitham Al Ghais, made this known on Tuesday at the ongoing 23rd Nigerian Oil and Gas (NOG) Energy Week Conference and Exhibition, holding in Abuja.

The conference, which holds from June 30 to July 4, has its theme as “Showcasing Opportunities, Driving Investment, Meeting Energy Demand”.

Addressing the Strategic Conference via teleconference, Al Ghais explained that it forecasted a rapidly expanding world population that would surpass 9.5 billion people.

“Why are we optimistic? Let us consider these statistics, which are based on OPEC’s World Oil Outlook.

“Urbanisation alone will account for over half a billion people moving to cities around the world by 2030.

“This data tells us that the world will require all forms of energy to meet long-term energy needs.

“Oil and gas will remain the predominant fuels in the energy mix.

“In fact, oil alone will retain its share at almost 30 per cent in 2045 as world demand for oil soars to an estimated 116 million barrels per day (mb/d) by that time,” he said.

To meet this rapid and robust growth in energy consumption, he said the industry would need to boost investment levels significantly in the years to come.

He said according to its research, cumulative oil-related investment requirements from 2024 until 2045 would amount to $14 trillion dollars or around $610 billion dollars on average per year.

“Securing this vital funding is essential to maintaining security of supply and avoiding unwanted volatility.

“In spite of these facts, I am certain you are aware of some recent predictions for peak demand by 2030 and calls for a discontinuation of investment in hydrocarbons,” he said.

Al Ghais further emphasised that indeed, the rush to adopt “Net-Zero” strategies was misguided and simply not realistic.

The OPEC Secretary General said that developing countries would continue to balance priorities between developing their national economies and addressing climate change.

In this regard, he pledged that OPEC and its member countries would continue to advocate for a fair process for adaptation, mitigation and means of implementation, with regard to climate finance and technology.

He decried the fact that there were an estimated 675 million people with no access to basic forms of energy and 2.3 billion without access to clean cooking fuels.

He tasked World leaders to unite and advocate for the necessary support and resources to make a difference in addressing this important matter.

“Looking ahead, OPEC will continue to enhance dialogue and cooperation with all of its energy partners, including in Africa,” Al Ghais said.

The Secretary-General, while commending President Bola Tinubu, appreciated Nigeria’s staunch commitment to OPEC and to the Declaration of Cooperation.