Organization of the Petroleum Exporting Countries (OPEC) oil production was up approximately 180,000 b/d from April, totaling 31.11 MMb/d in May.
Saudi Arabia again took the lead with an increase of 150,000 b/d to 10.25 MMb/d, while Angola and Iraq boosted output by 70,000 b/d and 50,000 b/d, respectively, reported Platts.
These extra volumes, which totaled 340,000 b/d, were partly offset by a 90,000 b/d drop in Libyan production to 430,000 b/d and smaller dips in Iran, Kuwait, Nigeria and Qatar.
Looking ahead, the demand for oil will grow to 111 MMb/d by 2040, an increase of around 18 MMb/d, said HE Abdalla S. El-Badri, OPEC secretary general, at the 6th OPEC International Seminar in Vienna.
“Renewables from wind, solar, small hydro and geothermal certainly hold promise, but globally their share of the energy mix will still be just 4% by 2040," he said.
The share of biomass and nuclear is expected to remain at steady levels throughout the period 2015-2040, at around 9% an 6%, respectively.
“This means that fossil fuels will continue to play a dominant role in meeting energy demand, although their overall share will fall from around 82-78% during this period. By the 2030s, the share of oil, coal and gas are anticipated to be at similar levels, at around 25-27%,” El-Badri explained.
According to OPEC, in 2H 2015 and in 2016, world oil demand is forecast to increase, with growth driven by non-Organizationfor Economic Cooperation and Development (OECD) countries, including Japan and Korea. On the supply side, non-OPEC growth in 2015 is expected to be just below 700,000 b/d, which is only around one-third of the growth witnessed in 2014.
El-Badri said although the industry needs to continue to develop renewables, it cannot be seen as a replacement for fossil fuels. He stressed that energy should be used more efficiently, as there are some people who still have no access to modern energy services.
“Yes, there are environmental concerns regarding fossil fuels. But there are ways that these can be met and overcome. This includes pushing for the development and use of cleaner fossil fuel technologies, such as carbon capture and storage."
Image: HE Abdalla S. El-Badri / OPEC
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