Nov 16, 2016

Oil demand will grow for decades, says IEA

Paris accord and electric cars will not stop consumption rising until 2040


Demand for oil will keep growing for decades even if the Paris climate agreement is fully implemented, the International Energy Agency has predicted, putting it at odds with a chorus of voices forecasting a quicker shift away from fossil fuels.
The global energy advisory body said that, while the UN accord would accelerate the uptake of clean technologies such as electric cars, it would not prevent oil consumption continuing to rise until at least 2040.

"Peak oil demand is not in sight," said Fatih Birol, the IEA's executive director. "Demand will increase at a slower rate than in the past but it will still increase."

His comments, ahead of the publication of the agency's annual energy market outlook on Wednesday, will intensify debate over how much longer oil will remain a dominant source of global energy. The question is attracting increasing attention from investors as oil companies wrestle with how to respond to the changing landscape.

Financial Times
by: Andrew Ward and Anjli Raval in London

Photo: © Getty