The London-based investment advisory firm Redburn thinks that global demand for oil could peak around 2026, writes Fereidoon Sionshansi, President of Menlo Energy Economics and publisher of the newsletter EEnergy Informer. The implications for oil majors are ominous.
For some time, there has been speculation about when global oil demand may peak – not because we will run out of oil or prices will spike making oil unaffordable, notions that are now considered passé – but because we won’t be needing as much of the stuff as we thought we would. And once the peak is finally reached – whenever that is – demand will begin to drop thereafter, perhaps precipitously.
