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Baku, January 26 AZERTAC
Oil demand growth will slow and supplies will remain abundant in the coming decades, meaning producers in the Middle East, Russia and U.S. continue to gain market share at the expense of higher-cost rivals, said BP Plc.
According to Bloomberg, demand for oil will expand by an average 0.7 percent a year over the next two decades, little more than half the rate in the preceding 20 years, BP said on Wednesday in its Energy Outlook 2035 report. By the early 2030s, transport will cease to be the main driver of growth, a significant departure from the historical trend.
BP’s analysis suggests the dominant oil market trends of the past few years -- plentiful supply, competition for market share between the biggest producers and moderate demand growth -- will prove to be long-term phenomena. The expansion of electric cars, increasing energy efficiency and more renewables could potentially cause oil demand to peak in the mid 2040s, BP’s Chief Economist Spencer Dale said.
Global oil demand grew at an average annual rate of 1.3 percent from 1995 to 2015, BP said. All of the predicted 0.7 percent a year growth to 2035 will come from emerging economies, with China accounting for half the increase, it said.
The oil slump that started in 2014 has changed the shape and look of the industry. Companies have sought to significantly cut costs so they are able to make a profit with oil at $50 a barrel instead of $100.
AZERTAG.AZ :BP sees future of slowing oil demand growth, abundant supplies
