Exxon Mobil projects steady oil and gas demand despite rise in renewables

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Exxon Mobil projects steady oil and gas demand despite rise in renewables
Credit: © Reuters.

Exxon Mobil (NYSE: XOM ), the multinational oil and gas corporation, recently unveiled its long-term forecast for the global energy market, predicting a sustained demand for oil and gas despite the anticipated growth of renewables. In its projection released on Thursday, the company maintained that oil and gas would continue to fulfill more than half of the world's energy needs.

The corporation linked energy demand directly to economic progression. According to Exxon Mobil's forecast, by 2050 an additional 1.5 billion individuals will join the global middle class. This surge in middle-class population is projected to result in increased consumption of commodities such as automobiles, air conditioners, and refrigerators, leading to a corresponding rise in energy demand.

Drawing parallels from China's experience where per capita energy usage increased more than fivefold during its economic boom, Exxon Mobil anticipates a similar trend could occur in Africa over the forthcoming decades. The company also predicts a significant 80% growth in global electricity consumption by 2050.

Contrary to popular opinion suggesting that Electric Vehicles (EVs) might lead to a peak in oil demand, Exxon Mobil posits that even if every automobile sold from 2035 onwards is an EV, it would only decrease global oil demand to approximately 85 million barrels per day. This level of demand is comparable to that seen in 2010. Therefore, Exxon Mobil insists that all forms of energy, including oil and gas, are necessary to support future growth.

In summary, Exxon Mobil's outlook until 2050 indicates an ongoing rise in energy demand with oil and gas maintaining their crucial roles in the global economy.

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