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Oil Demand to Peak in Three Years

Oil Demand to Peak in Three YearsOil Demand to Peak in Three Years

Global oil demand will peak in three years, plateau until around 2030 and then decline sharply, energy adviser DNV GL— the world's leading classification society and a recognized advisor for the maritime industry—said in one of the most aggressive forecasts yet for peak oil.
Most oil companies expect demand to peak between the late 2020s and the 2040s, Reuters reported. 
The International Energy Agency, which advises western economies on energy policy, does not expect a peak before 2040, with rising petrochemicals and aviation demand more than offsetting declining oil demand for road transportation. 
Wednesday’s annual report from DNV GL, which operates in more than 100 countries and advises both oil and renewable energy companies, would appear to be at odds with ongoing investment in developing new oil and gas fields. 
“The main reason for forecasting peak oil demand in the early 2020s is our strong belief in the uptake of electric vehicles, as well as a less bullish belief in the growth of petrochemicals,” Sverre Alvik, head of DNV GL’s Energy Transition Outlook, said in an email to Reuters. 
While DNV GL’s latest forecast shows oil demand peaking in 2022, one year sooner than it estimated last year, the difference is marginal and demand is expected to remain relatively flat over the 2020-2028 period, Alvik added. 

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