Despite the challenges posed by the ongoing energy transition. These sentiments were echoed at the Energy Asia conference held in Malaysia, where industry experts gathered to discuss the future of the energy sector.
John Hess, the CEO of Hess Corp., emphasized the prolonged timeline and significant investment required for a full-scale energy transition. He stated that new technologies, which are yet to be developed, would be crucial in achieving such a transition.
An advisor from Exxon also echoed this sentiment, highlighting that liquids, specifically oil, are projected to remain the leading energy source globally even in 2050. While the pace of demand growth may decelerate after 2025, the overall demand for liquids is expected to increase by approximately 15 million barrels per day by 2050. This growth will primarily stem from emerging markets in Asia, Africa, the Middle East, and Latin America, according to Erin McGrath.
Notably, the Secretary-General of OPEC expressed optimism about future oil demand, forecasting an expansion to 110 million barrels per day by 2045. This aligns with the consensus that Asia will continue to be the primary driver of oil demand in the long term. Industry experts, including Daniel Yergin from S&P Global and Patrick Pouyanne from TotalEnergies, emphasize the region’s population growth and the increasing demand for a better standard of living.
Amid discussions on the energy transition, Amin Nasser, the CEO of Aramco, highlighted the need to balance environmental sustainability with energy security and affordability. He emphasized the importance of not overlooking these critical aspects in the ongoing dialogue surrounding the transition.
In summary, oil industry leaders remain resolute in their belief that oil demand will persist in the long run. While acknowledging the energy transition, they underscore the significance of new technologies, the growth potential in emerging markets, particularly Asia, and the need to address a comprehensive range of energy-related challenges to ensure a sustainable future.
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