Study: World oil demand to drop by 7% by 2035
Baku, Azerbaijan, Oct.24
By Leman Zeynalova – Trend:
Oil consumption will stand at 87 million barrels per day by 2035, or 7 percent less than the current figures in the baseline scenario, according to the study conducted by Moscow-based VYGON Consulting company.
VYGON Consulting said that the total world oil demand will reach its peak by 2023, as it will increase by 3.3 percent as compared to 2015 and stand at 97 million barrels per day, RIA Novosti reported.
Decrease of consumption in road transportation and energy sectors will be the main reason of the decline in world oil demand by 2035, according to the report.
“The oil consumption in the countries of the Organization for Economic Cooperation and Development (OECD) will drop by 27 percent. The oil demand will increase by 11 percent in developing countries from 2015 to 2035, while it will begin to gradually decrease after 2029,” said VYGON Consulting. “As a result, the share of non- OECD countries in oil demand will increase from the current 51 percent to 61 percent by the ends of the forecast period.”
Oil will remain a key energy source for the foreseeable future, regardless of the rate of development of renewable energy and alternative technologies in road transport, according to the report.
However, the demand for oil products can decrease quite significantly, and the consumption peak against the backdrop of increase in oil supply can lead to a collapse in prices, and tighter competition for markets, according to the analysts.