Global oil demand to continue to grow until 2040
The oil industry is entering a period of greater oil price volatility, according to Fatih Birol, the IEA’s executive director.
“If oil prices rise in the short term, then shale producers can react quite quickly to put more oil on the market, producing a see-saw movement,” Fatih Birol stated. “And if we continue to see subdued investments in new conventional oil projects, this could have profound consequences in the longer term,” he added.
Birol’s comments were made following the release of the IEA’s World Energy Outlook 2016 report, which predicted that global oil demand will continue to grow until 2040 - mostly because of the lack of easy alternatives to oil in road freight, aviation and petrochemicals.
Speaking at the World Energy Outlook launch, Birol outlined that the share of Middle Eastern countries contributing to global oil production reached 35 percent in 2016, which is the highest level in the last 45 years. Birol also predicted that a second gas revolution, following the shale gas movement in the US, would be seen in the coming years.