ExxonMobil, IEA disagree on long-term oil demand, climate goals
Date
8/28/2024 5:03:25 AM
(MENAFN) In parallel with these market adjustments, ExxonMobil, a major U.S. oil producer, has issued a forecast that suggests global oil demand will remain steady or even rise slightly through 2050. This outlook presents a significant challenge for efforts to achieve net-zero carbon emissions by mid-century. According to ExxonMobil’s annual report, global demand is expected to stay above 100 million barrels per day until 2050. This demand will be driven largely by industrial applications such as the production of plastic goods and heavy transport operations. This projection is starkly different from the International Energy Agency's (IEA) stance, which calls for a 75 percent reduction in global oil demand to 24 million barrels per day by 2050 to keep the planet's temperature from rising more than 1.5 degrees Celsius above pre-industrial levels.
ExxonMobil’s Chief Economics and Energy Officer, Chris Birdsall, highlighted that, like the IEA, the company acknowledges that the world is not currently on track to achieve net-zero emissions. He stressed the importance of being realistic about the current trajectory and not misleading the public or stakeholders about the challenges ahead. Despite this, ExxonMobil maintains that global greenhouse gas emissions will begin to decline around 2030 as renewable energy sources continue to expand. They project a 25 percent reduction in emissions by 2050, although this may fall short of what is needed to effectively combat climate change. The contrasting perspectives from ExxonMobil and the IEA underscore the complexity and uncertainty surrounding future energy demand and climate policy, with significant implications for both the energy sector and global efforts to curb climate change.
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