Global demand for oil and natural gas is poised to grow for decades yet, did you know?
Despite what you may have heard about the “end of oil” due to uncertainty in global energy markets surrounding COVID-19, several major energy research firms and organizations are projecting continued demand growth over the next several years.
McKinsey, Wood Mackenzie and the International Energy Agency (IEA) are just a few of those who now see global oil and gas demand growing past pre-pandemic highs by the beginning of 2022. Fatih Birol, Executive Director of the IEA, even said in a June interview that demand has come back much faster than originally anticipated for several reasons such as the successful rollout of vaccines and return of some international travel.
With the projected growth of petroleum demand and an ever-increasing global focus on sustainability, we must ask ourselves an important question: which nations do we want as choice suppliers for future oil and gas demand in global markets? Is it Venezuela, Brazil, or Saudi Arabia? Or do we choose sustainable producers with much better protections for worker’s rights and the environment, like Canada?
Developing & Emerging Markets Need Canadian Resources
The future of oil and gas demand growth lies largely in the hands of the world’s developing nations. Yet, many of these emerging markets are looking to raise living standards for their people while balancing out climate change concerns as best they can.
China, for instance, is projected to consume nearly 15 million barrels of oil a day in 2022, roughly 1.5 million barrels a day higher than it did in 2019. India, another developing nation with the world’s second-largest population, accounts for 60 per cent of projected oil demand growth through 2040. Countries in Africa, Southeast Asia, South America and the Middle East also have a part to play in future oil demand growth.
Emerging markets with concerns over climate change while simultaneously supplementing the energy needs of their people should be looking to the most sustainable oil and gas producers as suppliers of choice. These nations should be buying oil and gas from producers with the best performance on ESG metrics versus those with weaker protections for human rights and the environment, wouldn’t you agree?
Canada’s ESG record speaks for itself. Among nations with the largest oil reserves, our country ranks number one for ESG practices, and of the world’s top 20 producers, 2nd for governance and social progress and 4th for the environment.
The choice is clear: Canada should be a global oil and gas supplier of choice for future demand in emerging markets and developing nations of the world, as well as for our traditional trading partners like the United States. Also see:
- Yes, We Can Have Both Canadian Oil & Gas and Climate Action
- Canada’s Oil Sands Sector an ESG Leader: Report
- Why Does the World Need More Canadian Oil?
Global Oil & Gas Demand Facts
A few fun factoids on projected global oil and gas demand growth to come:
- Global oil demand is projected to grow to about 104 million barrels per day (bpd) by 2025 and up to 108 million bpd by 2030 (BMO Capital Markets)
- Another recent projection pegs global oil demand at nearly 107 million bpd by 2030 (Wood Mackenzie)
- Oil demand in emerging markets is projected to grow to 60.1 million bpd in 2040, up from 46.4 million in 2019 (IEA)
- Oil demand in the Asia Pacific is projected to grow to 37.1 million bpd in 2040, up from 23.5 million in 2019 (IEA)
- To replace annual consumption and offset field declines, the oil and gas industry needs to invest more than $525 billion annually (Deloitte)
- Natural gas demand is projected to grow by nearly 1% annually from 2020 to 2035, peaking in 2037 (McKinsey)
- LNG is projected to account for 65% of total demand growth for natural gas through 2040 (Shell)
Canada’s ESG Index Performance
Canada’s rankings on the following ESG indexes nearly all other major global oil and gas producers, exporters and reserve holders. Canada ranks:
- 2nd on the Global Cleantech Innovation Index 2021
- 5th on the Democracy Index 2020
- 6th on the Global Peace Index 2020
- 7th on the Social Progress Index 2020
- 9th on the Rule of Law Index 2020
- 11th on the Corruptions Perception Index 2020 (the lower score, the less corrupt a nation is)
- 11th on the Women, Peace, Security Index 2019/20
- 14th out of 76 global economies on the Green Future Index 2021
- 16th on the Global Press Freedom Index 2020
- tied for 20th place on the Environmental Performance Index 2020
- 21st on the Sustainable Development Index 2020
Learn More About Canadian Oil & Gas
Global demand for oil and gas is projected to grow for many years yet, with many energy research firms expecting ‘peak oil’ sometime in the 2030s. And Canada’s world-class performance on ESG metrics in a world that’s ever-increasingly focussed on sourcing goods and services from sustainable suppliers means we should be a go-to choice for buyers.
Who would you choose to buy your oil from? We believe the choice is clear, a choice that would benefit both Canadian families and the global environment by sourcing oil and gas from responsible producers in Canada!
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