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Global oil demand is projected to peak in the next few years even as some major energy companies announce plans to reinvigorate their fossil fuel businesses.
The world’s appetite for oil is still rising, the International Energy Agency said in a report Wednesday, but annual growth is expected to slow to just 0.4% by 2028.
“The shift to a clean energy economy is picking up pace, with a peak in global oil demand in sight before the end of this decade,” said IEA Executive Director Fatih Birol.
Birol added that last year’s energy crisis had hastened the shift to cleaner sources of energy.
The agency expects global oil demand to reach nearly 106 million barrels per day in 2028. But the rate of growth will “shrivel” from the current 2.4 million barrels per day to just 400,000 in five years’ time.
The global thirst for oil is likely to be affected by stricter fuel efficiency standards, growth in the electric vehicle market and structural changes to economies around the world, according to the agency.
The IEA’s latest forecasts update its prediction in October that demand for oil would plateau by the mid-2030s.
