Global energy and fossil fuel consumption is set to defy wars and high prices and hit a record high level in 2024, led by strong Asian demand, the Economist Intelligence Unit said in a new report on Wednesday.
Next year, global energy consumption is expected to increase by 1.8%, according to the EIU report.
“Despite still-high prices and unsolved supply chain disruptions, demand for fossil fuels will reach record levels, but demand for renewable energy will rise by 11%,” the authors of the report wrote.
Oil demand alone is expected to increase by 1.7% next year, per the report. Natural gas demand is set for 2.2% growth, led by Asia and the Middle East, while Europe will continue to see depressed demand as it looks to save gas and energy.
Renewable capacity additions are set for a record high this year at around 400 gigawatts (GW) and will continue to rise in 2024, according to the report.
Global oil demand is set to rise by 2.4 million barrels per day (bpd) to a new record-high this year and by another 2.2 million bpd next year amid an improving Chinese economy, OPEC said in its latest monthly report earlier in October, leaving its demand forecast for both 2023 and 2024 unchanged, despite fears of slowing economies and demand destruction. World oil demand is set to reach a record average of 102.1 million bpd in 2023, driven by a 2.3-million-bpd demand increase in the non-OECD region, OPEC noted.
Coal demand globally is also expected to remain at record-high levels this year, said none other than the International Energy Agency (IEA) earlier this year.
The same agency reiterated this week its forecast that global demand for oil, natural gas, and coal is set to peak before 2030, which undermines the case for increasing investment in fossil fuels.
By Tsvetana Paraskova for Oilprice.com
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The EIU said in a new report on Wednesday that global energy and fossil fuel consumption is set to defy wars and high prices and hit a record high level in 2024 led by strong Asian demand.
The EIU report sees oil demand rising by 2.4 million barrels a day (mbd) this year and by 2.2 mbd by 2024 with China accounting for most of the growth. This is exactly what OPEC said in its report. The EIU also sees natural gas demand rising by 2.2%.
According to OPEC, global oil demand is set to reach a record average of 102.1 mbd in 2023 rising to an average of 104.3 mbd in 2024. OPEC sees global oil demand rising to 116.0 mbd between 2022 and 2045.
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert
What are your WTI price projections for the rest of 2023 and 2024.