The global demand for oil is expected to remain over 100 million barrels per day according to Saudi Aramco CEO Amin Nasser, signaling good news for new producers such as Guyana.
“There is good penetration from renewables and electric cars are picking up, however, you need to consider what is happening in the world. There are still an additional two billion people coming. There are currently three billion people using biomass, animal dung, kerosene for cooking and there are one billion people today without electricity and almost 50% of people have never flown in an aeroplane,” Nasser said at the Global Energy Challenge in Davos last week.
Noting that there will be additional demand, he said the only way to meet it is “if you continue to provide affordable, reliable and viable energy to the rest of the world.”
Paris-based International Energy Agency (IEA) said in its annual World Energy Outlook for the period leading up to 2040 that demand growth would continue to increase even though there would be a marked slowdown in the 2030s.
The agency’s central scenario – which incorporates existing energy policies and announced targets – is for demand for oil to rise by around 1 million barrels per day (bpd) on average every year to 2025, from 97 million bpd in 2018, Reuters said in a November 2019 report.
Demand is then seen increasing by 0.1 million bpd a year on average during the 2030s to reach 106 million bpd in 2040.
Guyana, South America’s newest oil producer, is expected to be producing upwards of 750,000 bpd by 2025 and is likely to exceed 1 million bpd by 2030. Continued demand and stability in the price of oil in coming years will play key roles in maximising revenue return for government and the Stabroek Block co-venturers.
Production got underway at the Liza Phase 1 Development, ExxonMobil’s biggest greenfield project since 2015, in December last at the Stabroek Block.