Exxon Mobil Expects Crude Demand to Remain Strong Through 2050: What Does This Mean for Your Investments?
By Sabrina Valle
Exxon Mobil recently announced that it anticipates crude demand to stay above 100 million barrels per day (bpd) through 2050, a forecast that is 25% higher than that of its European rival BP. This projection, which is part of Exxon's latest global oil outlook, supports the company's ambitious production growth plans and signals a more bullish outlook on oil demand compared to its competitors.
While BP expects oil consumption to peak in 2025 and decline to 75 million bpd by 2050, Exxon believes that the world's population growth and increasing energy needs will drive oil and gas demand higher over the next few years. In fact, even if every new car sold in 2035 were electric, Exxon estimates that demand would still be at 85 million bpd, the same level as in 2010.
Exxon's projections suggest that 67% of the global energy mix in 2050 will be supplied by oil and coal, down from 68% in the previous year. The company also emphasizes the need for increased investments in oil production, particularly in unconventional resources like U.S. shale, to prevent a steep decline in output that could lead to a fivefold increase in oil prices by 2030.
In summary, Exxon Mobil's optimistic outlook on crude demand and the necessity of continued investments in oil production could have significant implications for the global energy market and potentially impact your investment portfolio. It's crucial to stay informed about these trends and consider how they may affect your financial decisions in the years to come.