TotalEnergies expect the world to reach peak oil demands by 2030
French oil company TotalEnergies mentioned in their report that global oil demand is expected to peak before 2030, which is earlier than projected previously, according to media reports. The report also mentioned that oil demand will drop to 40-60 million barrels per day (BPD) by 2050.
Prior to this, the oil company also projected that its business was now working on the assumption that global consumption would start declining before the end of the decade. But this drop also depends on how strongly policies and consumer habits change. The report also mentions that the world consumed 99.7 million barrels per day of oil in 2019, according to the International Energy Agency, before the Covid-19 pandemic brought the economic activities to a complete halt.
But, natural gas will continue to play a major role as a transition fuel, especially when accompanied by carbon capture and methane emissions control techniques. The Paris-based company also mentioned that it is expected power generation to more than double by 2050, with wind and solar energy accounting for more than 85 percent of this increase. Earlier this year, Total was rebranded to TotalEnergies after its shareholders approved nearly unanimously the resolution to change the company’s name.
Patrick Pouyanné, CEO and chairman of TotalEnergies told the media, “Our ambition is to be a world-class player in the energy transition. That is why Total is transforming and becoming TotalEnergies.”
Currently, the company is profiting majorly by growing its liquefied natural gas (LNG) and renewable businesses as part of its strategy and net-zero agenda.