Global energy demand is set to outpace population growth until 2050, contrary to previous projections suggesting a peak in demand by the end of this decade, according to Shaikh Nawaf al-Sabah, CEO of Kuwait Petroleum Corporation.
“The world population is going to increase by about 25% between now and 2050, but energy demand will increase faster than that,” al-Sabah remarked at the CERAWeek by S&P Global energy conference.
He emphasized the need for greater energy intensity to meet the needs of the growing population. Al-Sabah highlighted the significant energy deficit in developing regions, with approximately three-quarters of a billion people lacking electricity and nearly 2.5 billion lacking clean cooking solutions.
“The situation needs to improve,” Al-Sabah said. “Countries in the global south will need lots of energy in the future. It’s fair for countries with little access to energy to use their natural resources cleanly and efficiently.”
The International Energy Agency (IEA) had previously forecasted a peak in demand for oil, coal, and natural gas before the end of the decade, as clean energy technologies become more prevalent. However, this projection has been a subject of debate at the CERAWeek conference.
Saudi Aramco CEO Amin Nasser argued that forecasts of peak oil demand primarily pertain to Western nations, neglecting the substantial populations in developing countries.
Nasser highlighted the significant growth potential for oil consumption in these regions, where per capita consumption remains low compared to developed nations.
Nasser criticized the current energy transition strategy, stating that developing nations receive only a small fraction of investments targeting renewables. He emphasized the need for a realistic approach, rejecting the notion of phasing out oil and gas entirely.
Kuwait Petroleum Corporation plans to increase its production capacity to 4 million barrels per day by 2035, anticipating continued growth in demand during the energy transition.
Al-Sabah reiterated that crude oil will remain a crucial component of the energy mix in the foreseeable future.
