Global energy demand to increase by 47 pct by 2040

ANKARA

Energy demand is expected to increase by 47 percent to 399 million barrels oil equivalent per day (mboe/d) by 2040, according to OPEC.

Based in Vienna, the Organization of the Petroleum Exporting Countries (OPEC), released Wednesday a report, 'World Oil Outlook for 2015', examining the main drivers of the global energy demand and revealed its projections for the oil markets in the medium to long term up to 2040.

The report shows fossil fuels will continue to dominate the energy mix with a 77.7 percent share by 2040. Out of global energy demand, natural gas is expected to have the largest share, making up 27.9 percent by 2040. Oil is projected to follow with 25.2 percent and coal with 24.6 percent.

Regarding the rise in energy demand, the organization's report says, "Much of this growth will continue to be concentrated in the developing world as industrialization, population growth and the unprecedented expansion of the middle class will propel the need for energy."

Developing countries' demand within the total energy demand in 2040 is projected to be the highest contributor at 63 percent, 13 percent higher compared to 2014.

"OECD energy consumption, on the other hand, will only increase 4 percent from 2014–2040 due to its continued focus on low energy-intensive industries, improved energy efficiency and slower economic growth," the report highlights.

-Global oil demand on the rise

Additionally, in the medium term by 2020, global oil demand will reach 97.4 mb/d.

In the OECD region, oil demand is projected to experience a decline of 0.2 mb/d, to 45.6 mb/d in 2020. Oil demand in developing countries is anticipated to increase by 6.1 mb/d between 2014 and 2020, reaching 46.4 mb/d, the report shows.

For the long-term, global oil demand is expected to increase by over 18 million barrels per day (mb/d) by 2040, to reach 109.8 mb/d, the report said.

Demand in the OECD region is expected to decrease by 8 mb/d, down to 37.8 mb/d, while demand in developing countries is expected to increase significantly (by almost 26 mb/d) to reach 66.1 mb/d, the report adds.

OPEC crude supply is expected to increase to 40.7 mb/d in 2040.

"The share of OPEC crude in the total world liquids supply is projected to increase to 37 percent in 2040, which is above 2014 levels of almost 33 percent," the report stresses.