…Reaffirms OPEC support for Paris Agreement
19 April 2018, Sweetcrude, Lagos – The world of energy will be more diversified in the years ahead, as renewables are projected to record the fastest annual growth rate, averaging 6.8% per annum between now and 2040.
Secretary-General of the Organisation of the Petroleum Exporting Countries, OPEC, Mohammad Barkindo, stated this in a keynote address at the 5th Kuwait Oil & Gas Show themed, ‘New Energy Era: Transformation, Diversification and Integration’ on Monday.
Barkindo said added to the expected growth in renewables, by 2040, the combined contribution of renewables, hydro, nuclear and biomass are expected to account for just 26% of the global energy mix, an increase of 7% from today.
In terms of oil and gas, combined, they are still expected to provide more than half of the world’s energy needs by 2040, with their combined share relatively stable between 52–53% over the almost 25-year forecast perio.
Concerning oil, he said he expects its contribution to reach over 111 million barrels per day by 2040, an increase of around 15 mb/d.
“We are expected to hit 100 mb/d during the course of this year, much earlier than initially forecast.
“On top of this, we should also remember that oil producers and companies must invest heavily simply to offset the impact of natural decline rates, which is annually around 4 mb/d”, he said.
Bakindo said this meant that there was no expectation for a peak in oil demand over the forecast period to 2040, as projected by both OPEC and the International Energy Agency, IEA.
He reaffirmed OPEC’s continuous support for the climate change pact signed in Paris on April 22, 2016, saying that although the group expects global energy demand to increase by 35% in the period to 2040, threats posed to the environment by climate change should be put into consideration.