The world will remain thirsty for oil
Given the focus on renewable energy and reducing carbon emissions, you might think that global oil consumption has been falling and will continue to fall in the decades ahead. This is not the case.
No one has a crystal ball and things could change, but according to the US Energy Information Administration, global oil consumption is projected to rise to over 120 million barrels per day by 2040 compared to the current level of about 95 million barrels per day.
This bodes well for Alberta’s oil patch except that the growth will largely happen in Asia where oil consumption is expected to increase from 24 million barrels per day in 2016 to 39 million barrels per day in 2040. Alberta will need tidewater access via new pipelines in order to help meet this increase in demand.
Oil consumption in the United States and Canada is projected to be essentially flat between now and 2040.The good news for Alberta’s oil industry is that, despite the rapid rise in US shale oil production, the Americans still need to import millions of barrels of oil per day and Alberta remains a key supplier.
