Goldman Sachs, the prominent Wall Street bank, projects significant global oil demand growth through 2040. The bank anticipates demand reaching 113 million barrels per day (mbpd) by 2040. This marks an increase from the 103.5 mbpd estimated for 2024.
Drivers of Future Demand
Two key factors primarily drive this projected rise in demand. Global energy needs continue to expand. Furthermore, ongoing challenges persist in the development and implementation of low-carbon technology and related infrastructure.
These difficulties suggest a slower transition away from fossil fuels than some projections indicate. Consequently, traditional energy sources like oil will likely maintain a crucial role in meeting worldwide consumption requirements for decades.
Near-Term Growth Outlook
Looking ahead, Goldman Sachs also forecasts strong average annual demand growth in the coming years. The bank expects an increase of 0.9 mbpd between 2025 and 2030. This indicates a steady increase in the coming years.
This consistent growth over the next five years underscores the immediate future of oil consumption. It highlights the continued reliance on crude oil to power various sectors globally.
Bank’s Assessment
The assessment from Goldman Sachs provides a long-term view of the global energy landscape. It emphasizes the enduring role of oil despite increasing climate initiatives. The report offers insights into market expectations for energy consumption over the next decade and beyond.
The bank’s analysis suggests that overcoming infrastructure and technological hurdles for low-carbon alternatives remains critical for future energy shifts. This perspective informs investors about potential market trends.
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