Photo: Hussein Malla / AP
Pandemic coronavirus led to reduce daily oil consumption by nearly a third earlier this year. The crisis may put an end to the oil era, experts predict polled by Reuters.
The increase in the number of electric vehicles and the transition to renewable energy sources have been forced to revise long-term forecasts on the demand downwards. “All the key players of the market admit that the consumption will never recover completely,” said a source close to OPEC.
According to forecasts, the consumption will reach a maximum and then will decrease in the coming years. In 2019, the world has consumed to 99.7 million barrels a day. OPEC predicted the growth to 101 million barrels in 2020, but because of the crisis, this figure fell to 91 million barrels. Forecast for 2030 declined from 118 to 108,3 million barrels per day.
The share of oil in the global energy sector in recent decades has steadily declined, from 40 percent in 1994 to 33 percent in 2019. Commodity prices are still substantially below the level required by the majority of governments of oil-producing countries to balance their budget.
Since August, the OPEC countries agree to ease restrictions of oil production from 9.7 million barrels to 7.7 million. According to the forecasts of British oil company BP, the average price of a barrel of Brent crude in the coming decades will be 55 dollars.
Video, photo All from Russia.