Daily Mirror (Sri Lanka)

OPEC doesn’t...

- Business · Finance · Stocks & Markets · Ecology · Oil · Energy · Climate Change · Financial Markets · Industries · Organization of Petroleum Exporting Countries · British Petroleum · Organization for Economic Cooperation and Development · India · China

This base­line sce­nario rep­re­sents 9.4 per­cent growth from pre-coro­n­avirus con­sump­tion lev­els.

Un­der its slow growth sce­nario, OPEC ex­pects 5.0 per­cent growth in oil de­mand.

And even with fast adop­tion of green tech­nolo­gies and tougher cli­mate change poli­cies, the car­tel still sees a 3.1 per­cent in­crease in con­sump­tion.

OPEC’S fore­cast con­trasts with that of some in­dus­try play­ers, in­clud­ing ma­jor oil firms such as BP, which in its lat­est long-term es­ti­mates pre­dicted that oil de­mand had al­ready peaked or would soon do so thanks to increased use of re­new­able en­ergy and the im­pact of the coro­n­avirus.

Yet even the car­tel’s fore­casts re­veal the im­pact of the changes al­ready un­der­way in cer­tain re­gions.

It sees oil de­mand as hav­ing al­ready peaked in devel­oped coun­tries that are part of the OECD, while it will con­tinue to grow in de­vel­op­ing coun­tries.

“De­mand pro­jec­tions show a con­trast­ing pic­ture be­tween the two ma­jor re­gions: de­clin­ing long-term OECD de­mand and grow­ing de­mand in the NON-OECD,” said the re­port.

“In this re­gard, In­dia, China and other de­vel­op­ing coun­tries (DCS) with in­creas­ing pop­u­la­tions and high eco­nomic growth play a key role in in­creas­ing en­ergy de­mand while devel­oped na­tions in the OECD are ex­ert­ing more of their ef­forts on en­ergy ef­fi­ciency and low-car­bon tech­nolo­gies,” it added.

China and In­dia are ex­pected to ac­count for half of that en­ergy de­mand growth.

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