Oil is here to stay, says the IEA
The world’s consumers are not yet ready to say goodbye to the era of oil, while the demand for gas is in the fast lane, thanks to its flexibility, says the International Energy Agency (IEA).
IEA executive director Dr Fatih Birol said last week there was robust growth in global oil demand. This came from shipping, aviation and trucks, especially in Asia, but most importantly from growth in petrochemicals.
Birol told delegates attending Africa Oil Week, in Cape Town, that a third of global oil demand would come from petrochemicals and was expected to grow strongly beyond 2030.
“Global oil demand will continue to rise over the coming decades. There’s no question about that. The important thing is to meet that demand at affordable prices for all of us.”
He also warned that upstream investments were not coming in on time and could create challenges for oil markets in the early 2020s.
“[Apart from] the US shale business, we’ve seen a big decline in upstream investments across the world.”
In Africa, the picture was also worrying.
“In Africa, our numbers show that, between 2014 and today, upstream investment declined by more than 50%.”
But Birol said there was positive news in the emergence of gas reserves.
“Africa’s gas production is set to increase sharply. It’s expected to rise by roughly 150% over the coming decades. Africa is becoming a global player in gas,” said Birol.
He said liquefied natural gas (LNG) was “ushering in a new global gas order”, which provided opportunities for both importers and exporters across Africa.
“Today, pipelines have a higher share than LNG, but, as a result of developments, the share of LNG is growing.”
Nigeria, Mozambique “and, hopefully, soon Tanzania” would come into the picture, he said.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established in 1983, the ASTPM is an industry association and representative body of the welded carbon steel tube and pipe manufacturers of South...
VISIT SHOWROOM
CSIR International Convention Centre (CSIR ICC) - the leading conference and events venue in Pretoria/Tshwane.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
