BP lowered its long-term outlook for oil and gas demand in its latest annual forecast.
The British energy giant anticipates that many countries will
prioritize investments in renewables in order to be more energy
independent.
- BP's latest Energy Outlook forecasts that demand for fossil fuels will decline faster than previously estimated.
- Increased
global focus on energy security driven by Russia's invasion of Ukraine
is partly responsible for the change, according to the report.
- The
global push for energy security could boost demand for "domestically
produced energy, much of which is likely to come from renewables and
other non-fossil fuels,” said BP Chief Economist Spencer Dale.
- The report forecasts that global economic activity in 2035 will be 3% lower than previously predicted due to high inflation and a downturn in trade.
- Over 100 countries have proposed or are considering plans to reach net-zero carbon emissions, according to Climate Action Tracker.
- For the world to reach net-zero climate targets by 2050, demand for oil will need to be less than a third of what BP currently predicts for that year, reports Bloomberg.
