BP: By 2030, chemical industry will be main oil customer

Baku. 26 January. REPORT.AZ/ Oil demand growth will slow and supplies will remain abundant in the coming decades, said BP Plc.

The demand for oil will expand by an average 0.7 percent a year over the next two decades, little more than half the rate in the preceding 20 years, Report informs referring to the Forexpf.ru, BP said on Wednesday in its Energy Outlook 2035 report. By the early 2030s, transport will cease to be the main driver of growth, to give its place to chemical industry. 

BP’s analysis suggests the dominant oil market trends of the past few years - plentiful supply, competition for market share between the biggest producers and moderate demand growth - will prove to be long-term phenomena. The expansion of electric cars, increasing energy efficiency and more renewables could potentially cause oil demand to peak in the mid 2040s.

Global oil demand grew at an average annual rate of 1.3 percent from 1995 to 2015, BP said. All of the predicted 0.7 percent a year growth to 2035 will come from emerging economies, with China accounting for half the increase, it said.

Technological advances and environmental concerns change the structure of energy demand, but oil, gas and coal will remain the main energy sources by 2035. Gas consumption is growing faster than consumption of oil or coal. The rapid growth in LNG consumption is likely to create an integrated world market for this product, oil price of which will be tied to the prices in the United States. Two thirds of the gas supply growth will occur in the shale industry, as leader remains the US.