The International Energy Agency IEA forecasts a significant oil surplus by 2030 due to increased production and tempered demand from the clean energy transition.
Global oil demand is expected to level off at 106 million barrels per day (bpd) by the end of the decade, while supply capacity could surge to 114 million bpd, resulting in an eight million bpd surplus, according to the IEA’s annual report published Wednesday.
IEA Executive Director Fatih Birol stated that the slowdown in global oil demand growth is due to the pandemic rebound losing steam, advancements in clean energy transitions, and structural changes in China’s economy.
Birol advised oil companies to prepare their business strategies for the upcoming changes in the oil market.