Oil and Gas
Even though energy demand trends continue to evolve, hydrocarbons will remain a relevant part of the energy mix for the foreseeable future. According to most scenarios, oil and natural gas together will comprise 47% to 54% of the energy mix into 2040.
As the lifeblood of the global economy, oil has been the catalyst for societal transformation and the most significant source of energy since the dawn of the 20th century. Since then, the world has relied on oil for fuel and petrochemical products that serve a growing global population—one that is forecast to be close to 10 billion by 2050.
Similarly, the role of natural gas increased over the years through greater investment in innovation and infrastructure, allowing it to triple production in the last 40 years. Its versatile use in transportation, heating, and electricity production makes natural gas an ideal supplement to oil while its lower carbon footprint helps accelerate smart energy transitions.
The COVID-19 pandemic has been a shock to the global economy and energy markets. Not even during the Global Financial Crisis of 2007-2008 has the world experienced such a sudden and steep drop in global energy demand as in the second quarter of 2020 when oil consumption alone dropped by more than 20 million barrels per day in the world’s most important commodity market.
Producer and consumer dialogue is more important than ever in reducing energy market volatility, finding solutions to product supply-demand imbalances, and addressing challenges in oil and gas investment to meet demand for future generations. The IEF will use its global platform as a neutral facilitator in helping to ensure energy security while advancing the goals of clean energy and a sustainable future.