It seems that the world is on the brink of a new "electric era." The International Energy Agency (IEA) predicts a future where oil will be cheaper than a cup of good coffee, and demand for fossil fuels is currently about to reach its peak. Imagine this: drivers around the world are rushing to switch to electric cars, so oil may become obsolete like an old vinyl record—a memory of past glory days.
According to IEA Executive Director Fatih Birol, the global community is heading toward "a completely different energy world." Does it mean the time is right to wind down crude oil production and invest in green energy? These are not just words—investments in clean energy could surpass two trillion dollars in 2024, almost twice as much as in fossil fuels. It seems solar panels and wind turbines are the new trend worldwide.
The IEA estimates that global oil demand will peak by 2030 at around 102 million barrels per day and then slowly decline to a modest 99 million by 2035. And beyond that, electric vehicles, the saviors of our planet, will gradually push oil off its pedestal.
What about prices? If things go ahead as they are, oil could trade at $75 per barrel by 2050. But if governments get serious about cutting emissions, we could witness something fantastic in the markets: oil at $25 per barrel.
Curiously, Russia’s Deputy Prime Minister Alexander Novak takes a much more optimistic view. He believes that oil demand will grow by one to two per cent annually and reach 120 million barrels per day by 2050. Optimism is a good thing, but the popularity of electric vehicles proves the opposite.
