Oil demand will stay above 100 million barrels per day (bpd) through 2040, the chief executive of Abu Dhabi National Oil Company (ADNOC) said on Tuesday, reiterating the need for investment in all forms of energy.
Global oil demand will remain above 100 million barrels per day through 2040, with demand for both LNG and electricity surging by 50% or more.
Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, and Managing Director and Group CEO of ADNOC, told the India Energy Week conference.
Global power demand is set for a surge over the next decade, both thanks to AI and data centers and increased demand for air conditioning, Al Jaber said.
“Demand at this scale and pace requires investment in all forms of energy,” Al Jaber said, adding: “The biggest risk is not over supply, it is underinvestment.”
At the end of last year, Al Jaber said that the advances in AI and the surge in data center build-out have pushed global energy investment needs to $4 trillion annually.
Al Jaber said in November, “you can’t run tomorrow’s economy on yesterday’s grid” as he noted that the world needs $4 trillion in annual capital investment in grids, data centers, and all sources of energy.
Large oil producers have been warning for years that investment in supply needs to rise to meet constantly growing global energy demand.
Demand growth will be shaped by three major drivers—the rise of emerging markets, the exponential growth of AI, and the transformation of energy systems, the UAE’s minister and top ADNOC executive said in India today.
All these trends converge in India, which is becoming key to worldwide energy growth, Al Jaber noted.
India has just locked in a 10-year LNG supply deal with ADNOC. The value of the deal is $3 billion, making it one of the largest for the energy importer.
By Tsvetana Paraskova for Oilprice.com
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