BP: Oil demand to remain central part of energy system for next 10–15 years

BP: Oil demand to remain central part of energy system for next 10–15 years

BAKU, Azerbaijan, Sept.25

By Leman Zeynalova – Trend:

Oil demand will remain the central part of the energy system for the next 10–15 years, Spencer Dale, group chief economist of BP plc, said, Trend reports.

“Sometimes people think that once oil demand peaks, somehow demand goes away and vanishes. That is clearly not the case. In all the scenarios, oil demand remains a central part of the energy system for the next 10–15 years. The levels of investment needed in upstream oil and gas are between $10–20 trillion over the next 30 years. So even if we do see peak oil, oil is going to play a critical role in our energy system for the next 10 or 15 years, requiring significant levels of investment,” he said.

Dale believes there is a need to set a strategy which is good for a world where oil demand is sort of rising back up above pre-COVID levels and staying there and another one where it is falling off by about 10 million barrels a day.

“That is what resilient strategies are, not trying to pick, whether it is one year or another year,” noted Dale.

He went on to add that with the shift to a lower-carbon energy system, two things are happening in terms of oil and gas.

“One is increasing competition across fuels. You can see this most naturally for gas, where gas is having to compete far more competitively against renewable energy in the power sector. In oil, we are seeing increasing competition in transport, where oil is now competing against electricity and also natural gas. So, one: competition across fuels.

“Secondly, also, competition within fuels. In the world I showed you, say, for oil demand, oil demand in some scenarios goes back to about pre-COVID levels but it is not growing very significantly. In others oil demand is starting to contract. In that world we are going to have increasing competition within oil as owners of oil resources compete to make sure that their oil is produced and consumed. So, I think the message for countries who are large oil and gas exporters is the world is going to become more competitive, with heightened competition. To make sure you are a winner in that world, you need to make sure that your oil and gas upstream operations are as efficient as possible so you can compete in this increasingly competitive world,” said the group chief economist.

---

Follow the author on Twitter: @Lyaman_Zeyn

Subscribe to Trend in Google News! Subscribe
Iran reveals COVID-19 data for October 28
Iran reveals COVID-19 data for October 28
14th batch of Sputnik V vaccines delivered to Iran Embassy in Moscow
14th batch of Sputnik V vaccines delivered to Iran Embassy in Moscow
Iran reveals COVID-19 data for October 27
Iran reveals COVID-19 data for October 27
Loading Bars
Latest
USAID and Startup Georgia support launching of coal enterprise
Russia calls for adherence to statements contributing to unblocking of all transport links in S.Caucasus - MFA
Uzbekistan plans to hold meeting on accession to WTO
Azerbaijani Naval Forces hold competition for title of "Best Ships Division" (VIDEO)
Independent Franco-German financial services group considering projects in Uzbekistan
Russia’s Tatneft to repair hundreds of oil wells in Turkmenistan
Turkmenistan discovers new gas fields on Caspian Sea coast
SOCAR increases number of gas filling stations in Romania (PHOTO)
U.S. economy slows sharply in third quarter
Grain clusters, farmers look to sell wheat at market prices in Uzbekistan
Russia is open for cooperation on energy security, climate change — Putin
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,420 more COVID-19 cases, 1,358 recoveries
Uzbekistan, Tajikistan approve agreement on transit of dangerous goods
Iran to build power transmission line in Turkmenistan’s Mary
India seeks vaccine loans from ADB, AIIB
Uzbekistan considering to sign new agreement with Gazprom
Let COP26 be COP of actions, not just promises and pledges: India at UN
Azerbaijan's Kapital Bank ready to co-op with startups
Uzbekistan shares electric car import stats for 9M2021
NATO Special Rep appreciates Azerbaijan’s support to NATO in Afghanistan
Uzbekistan discloses volume of grape export to Azerbaijan for 9M2021
Kazakhstan, Huawei sign MoU on extending ICT co-op
Georgia reveals volume of its foreign debt to Azerbaijan
Uzbekistan, Russia eye increase of supply of agricultural products by 2030
Indo-Pacific is a "Fact Of Life": S Jaishankar
Oman approves Covaxin shots for travel without quarantine
SOCAR Turkey’s sales down year-on-year
Kazakhstan, Russia resume negotiations on Khvalynsk, Imashev fields
Kazakhstan’s national postal operator to buy spares via tender
Turkmen officials to discuss TAPI project in Kabul
SOCAR Turkey sees increase in assets
Kazakhstan completes repair of Pavlodar oil chemistry refinery ahead of schedule
Azerbaijan allows administration of fourth dose of COVID-19 vaccine
Pasha Bank is ready to support new projects on developing Azerbaijan's startup ecosystem - board member
Kazakhstan increases petroleum oil exports to France
Turkmenistan, Iran expand bilateral relations
Uzbekistan to subsidize difference in average gas price
Merck raises full-year profit target after cancer drug sales help Q3 beat
Nar supports publication of book on veteran teachers
Renesas buys Israeli Wi-Fi chipmaker Celeno for $315m
Turkey receives positive signals from Armenia – Turkish defense minister
Indian forex reserves surge by $58.38 bn in H1
Qatar targets 25% cut in greenhouse gas emissions by 2030 under climate plan
Kazakhstan's economy to grow faster than in other EAEU states - EDB expectations
Georgia to keeps tight monetary policy – NBG
India, Sri Lanka and Maldives hold joint exercise on maritime security
Kazakhstan boosts manufacturing volume of gold
Indian Govt looks to revive tourism sector as jab drive gathers steam
Canadian company to invest in exploration of gold deposits in Uzbekistan
Turkish company talks plans for crop, livestock production in Azerbaijan's Karabakh
21 subject olympiad winners enter Baku Higher Oil School
IRENEX shares data on sales of Iran’s NIOPDC at energy exchange
Bahar Azadi gold coin price again falling in Iran
Azerbaijan’s 9M2021 imports of Turkish chemical products increase
Kazakhstan to build capacious renewable energy facilities
PM Modi reaffirms India’s focus on free & open Indo-Pacific
Iran reveals COVID-19 data for October 28
Chief Financial Officer of Azerbaijan's Bravo supermarket chain talks profit prospects
Pension savings in Kazakhstan increase
Iran's Bistoon TPP boosts electricity generation
Romania plays very important role in Azerbaijan-NATO cooperation plan - Azerbaijani president
Konkan Shakti 2021: India, UK take part in maiden bilateral tri-service exercise
Georgian public foreign debt on the rise
During second Karabakh war, we felt support of people of Kyrgyzstan - President Ilham Aliyev
Turkey occupies very important place in international arena today - Azerbaijani President
EBRD talks details of putting out former uranium mining sites in Uzbekistan
Indian-origin Anita Anand is Canada's new Defence Minister as PM Trudeau reshuffles Cabinet
Kazakhstan reports decrease in volume of money transfers
Azerbaijan's Barda city commemorates victims of Armenian aggression during second Karabakh war (PHOTO)
Russia’s Gazprombank projects Azerbaijan’s refinancing rate level
Iran’s Shahid Tondgooyan Petrochemical Company reaches increase in production
Armenia ready to begin delimitation and demarcation of borders with Azerbaijan
Azerbaijani President congratulates Turkish counterpart
Saipem announces time of returning EBITDA to pre-COVID level
Iran shares amount of needed money for construction of roads, bridges in Khuzestan Province
Iran reveals volume of trade turnover via border terminals in Sistan & Baluchestan Province
Saipem reveals revenue forecasts for 2H 2021
Turkey acting jointly with Azerbaijan regarding normalization of relations with Armenia - FM
Saipem sees significant increase in revenues
Turkey reveals number of ships docking at Tekirdag port in 9M2021
Armenia lagged behind Azerbaijan in armaments issue – Armenian president
Azerbaijan talks ongoing work to restore houses damaged from Armenian shelling during Second Karabakh War - Trend TV (PHOTO)
Ryanair vows 5-day refund turnaround after COVID criticism
Hungary talks on measures to diversify gas supply routes
Hungary’s gas reservoirs 86% full, well above EU average
Investment projects in Turkmen oil and gas fields in Caspian Sea discussed at int'l conference
BSTDB ready to support Azerbaijan to meet emission commitments under Paris agreement (Exclusive)
Bank Keshavarzi Iran sees increase in loans issued for purchase of agricultural machinery
SOCAR’s STAR Refinery boosts crude imports
Turkmenistan Airlines simplifies clearance of int’l cargo transportation
Turkmenistan, Danish Haldor Topsoe to co-op in ammonia, methanol production
Azerbaijan sees significant growth in investment in capital market
Iran increases exports through Bilasuvar border checkpoint
Remains of two people found in Azerbaijan's liberated Aghdam - Prosecutor General's Office
Azerbaijan to discuss change of state duties
Iran announces amount of currency sold at NIMA exchange rate
Kazakh gas producing company opens tender to attract designing services
Iran allocates financial aid to support maritime industries
President Ilham Aliyev receives credentials of incoming Romanian ambassador (PHOTO/VIDEO)
All news