The International Energy Agency (IEA) has announced that the world is approaching a new “age of electricity,” with fossil fuel demand expected to peak by the end of the decade. This shift could lead to surplus oil and gas supplies, potentially driving investment into green energy. Key highlights include:
Peak Demand Forecast: Global oil demand is projected to peak before 2030 at just under 102 million barrels per day, decreasing to 99 million barrels per day by 2035, largely due to increased electric vehicle adoption.
Investment Surge: A record $2 trillion is expected to be invested in clean energy in 2024, nearly double the investment in fossil fuels.
Price Predictions: If current policies remain, oil prices may decline to $75 per barrel by 2050. However, with stricter environmental policies, prices could drop to $25 per barrel.
Geopolitical Uncertainty: Ongoing conflicts in the Middle East and Russia, alongside significant elections in 2024, add uncertainty to global energy markets.
The IEA emphasizes the need for increased investment in cleaner technologies to facilitate this energy transition.