There’s no peak in global oil demand on the horizon and it will take trillions in investment in the coming decades to meet that need, the secretary-general of the Organization of Petroleum Exporting Countries said Tuesday.
Primary energy demand is forecast to rise by 24 per cent between now and 2050, surpassing 120 million barrels a day, Haitham al-Ghais said in a speech to the Global Energy Show.
That will require US$17.4 trillion in investment over that time, he said.
“OPEC’s forecasts are not based on ideology. They are based on data and analysis of data, and they clearly indicate that of oil will remain an integral part of the energy mix at around 30 per cent still in 2050,” al-Ghais said.
“Simply put, ladies and gentlemen, there is no peak in oil demand on the horizon.”
Al-Ghais criticized the International Energy Agency for sending mixed signals to industry in recent years — first saying oil should be a cornerstone for global energy security, then saying no oil investments should be made under a net-zero scenario, and then reverting back to the earlier view.
“Bodies that are entrusted guiding policy on global energy affairs should not reverse course every couple of years if they want to remain credible and relevant,” he said.
Companies need certainty for long-lead-time projects, and inadequate investment in the oil and gas industry is a “dangerous matter,” he said.
“It undermines energy security and market stability and causes heightened volatility all around the world, which affects producers, but not only producers — more importantly, it actually affects consumers, and of course, the wider global economy.”
Al-Ghais said OPEC takes climate change “very, very seriously,” but expressed concern over net-zero targets he called “unrealistic,” “fixated on deadlines” and “detached from reality.”
“We welcome the recent moves toward policies grounded in pragmatic energy realities, and that recognize that we face an emissions challenge and not the energy sources challenge,” al-Ghais said, noting OPEC members are signatories to the Paris climate agreement and recognize the important role of renewable energy and carbon capture.
The OPEC secretary-general said his organization admires what Alberta has accomplished as an energy producer.
“As a result of this, Canada has become a major global — and I underline the word global — oil supplier,” he said.
Lisa Baiton, president and CEO of the Canadian Association of Petroleum Producers, told the conference that the market is starting to come around to the view that an “energy transition” is not underway, but rather an “energy addition.”
“We’re seeing the demand for energy just growing exponentially,” she said.
“It’s great that renewables are growing, but it’s just going to be layered on top of the growth in conventional oil and gas to meet to meet global demand.”
Jon McKenzie, president and CEO of Canadian oilsands giant Cenovus Energy Inc., told reporters on the sidelines of the conference that he agrees more industry investment is needed, and sector players have what it takes to meet the challenge.
“This is an industry that does a really good job of getting productive and beating back costs.”
This report by The Canadian Press was first published June 10, 2025.
Lauren Krugel, The Canadian Press
