Kuwait Petroleum and the IEA are at odds on future oil demand

What’s going on here?

Kuwait Petroleum took issue with predictions that global oil demand will tail off, on-brand for a giant black gold producer.

What does this mean?

The International Energy Agency (IEA) believes oil will fall out of favor after 2030, as governments embrace cleaner alternatives. Kuwait Petroleum thinks the agency’s missed a trick, though. The world’s population is expected to increase by a quarter before 2050, putting a strain on developing countries where millions already have no access to electricity. So while the world tackles that inequality, Kuwait Petroleum’s CEO estimates that we’ll burn through more energy per person over the next two and a half decades. Oil would be a popular pick: it’s a lot cheaper than many alternative energies. That’s why Kuwait Petroleum plans to produce one million more barrels of oil a day by 2035, bringing its daily roll-out to a weighty four million barrels.

Why should I care?

Zooming out: You can’t trust anyone.

The IEA and OPEC – the group of the world’s biggest oil-producing nations – have more than one million barrels of oil a day between their forecasts for demand this year, the biggest difference in opinion for 16 years. See, the organizations aren’t working off the same assumptions: in fact, OPEC believes the IEA’s predictions are skewed by the agency’s optimism around green energy. Now, it’s fine if they don’t see eye to eye. Problem is, those biased outlooks could start influencing where investors put their money.

Source: International Energy Forum

The bigger picture: Fuel the future – literally.

AI might have the potential to dream up perfectly sustainable energy solutions, but for now, it’ll need to fuel those imaginations with dirtier fuel. A lot of it, too: Boston Consulting Group believes that technologies related to AI products – from smartphones to household appliances – will devour 7.5% of the US’s electricity by 2030, triple the share from only two years ago.

This article was originally published by a finimize.com

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