SEATTLE (Oil Monster): The first long-term oil demand outlook was released by prominent energy broker Vitol. The company's perspective on future oil demand and the variables that are anticipated to impact it are described in the study.
According to the analysis, Vitol does not expect global oil consumption to decline until 2040. Declining demand starting in the middle of the next decade will counteract the anticipated year-on-year increase in oil use during the next several years. It stated that the demand in 2040 will be comparable to that of today. By the end of this decade, the world's oil demand may reach a peak of 110 million barrels per day, but by 2040, it will have dropped to its present level of about 105 million barrels per day.
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According to Vitol, the demand for gas and gasoline is expected to decline. It predicts a further decline in demand, primarily due to a decrease in demand for gasoil in other industries and a greater electrification of road transportation. The projected period through 2040 is anticipated to see a steady increase in the demand for jet fuel and liquefied petroleum gas (LPG).
Approximately 45% of today's oil consumption is accounted for by road transport fuels, according to the report. By 2040, the percentage is expected to drop to less than 40%, notwithstanding their continued importance as a demand generator. However, according to current estimates, any slowdown in the adoption of electric vehicles might increase the need for road transport gasoline by about two to three million barrels per day (bpd).