There’s no peak in global oil demand on the horizon and it is going to take trillions in investment in the approaching a long time to fulfill that need, the secretary-general of the Organization of Petroleum Exporting Countries said Tuesday in an address to the Global Energy Show in Calgary.
Primary energy demand is forecast to rise by 24 per cent between now and 2050, surpassing 120 million barrels a day, said Haitham al-Ghais.
That can require US$17.4 trillion in investment over that point, he added.
The Secretary General of OPEC predicts global energy demand to rise by 24 per cent by the yr 2050.
File photo
“OPEC’s forecasts will not be based on ideology. They’re based on data and evaluation of information, and so they clearly indicate that of oil will remain an integral a part of the energy mix at around 30 per cent still in 2050,” al-Ghais said.
“Simply put, ladies and gentlemen, there isn’t a peak in oil demand on the horizon.”
Al-Ghais criticized the International Energy Agency for sending mixed signals to industry in recent times — first saying oil ought to be a cornerstone for global energy security, then saying no oil investments ought to be made under a net-zero scenario, after which reverting back to the sooner view.
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“Bodies which can be entrusted guiding policy on global energy affairs mustn’t reverse course every couple of years in the event that they need to remain credible and relevant,” he said.
Firms need certainty for long-lead-time projects, and inadequate investment within the oil and gas industry is a “dangerous matter,” he said.
“It undermines energy security and market stability and causes heightened volatility all all over the world, which affects producers, but not only producers — more importantly, it actually affects consumers, and naturally, the broader global economy.”
Al-Ghais said OPEC takes climate change “very, very seriously,” but expressed concern over net-zero targets he called “unrealistic,” “fixated on deadlines” and “detached from reality.”
“We welcome the recent moves toward policies grounded in pragmatic energy realities, and that recognize that we face an emissions challenge and never the energy sources challenge,” al-Ghais said, noting OPEC members are signatories to the Paris climate agreement and recognize the vital role of renewable energy and carbon capture.
The OPEC secretary-general said his organization admires what Alberta has achieved as an energy producer.
“Consequently of this, Canada has grow to be a serious global — and I underline the word global — oil supplier,” he said.
Lisa Baiton, president and CEO of the Canadian Association of Petroleum Producers, told the conference that the market is starting to return around to the view that an “energy transition” isn’t underway, but slightly an “energy addition.”
“We’re seeing the demand for energy just growing exponentially,” she said.
“It’s great that renewables are growing, nevertheless it’s just going to be layered on top of the expansion in conventional oil and gas to fulfill to fulfill global demand.”
Jon McKenzie, president and CEO of Canadian oilsands giant Cenovus Energy Inc., told reporters on the sidelines of the conference that he agrees more industry investment is required, and sector players have what it takes to fulfill the challenge.
“That is an industry that does a very good job of getting productive and beating back costs.”
© 2025 The Canadian Press
