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IEA report highlights need for oil investment

Global oil consumption to grow due to rising demand for petrochemicals, trucking and aviation.

In the International Energy Agency’s World Energy Outlook 2018 report, oil demand will continue to rise to 2040. Much of this growth will come from demand for petrochemicals—chemicals derived from oil and gas that are then used to create plastics, carbon fibre and other materials. These materials are used to manufacture a wide range of every day products: ranging from smartphones and running shoes to cosmetics and wind turbines. 

The report also notes that the world is headed to an oil supply crunch due to currently insufficient levels of investment in exploration and production. As existing sources of oil are depleted, the world could be headed toward escalated oil prices. This takes into account an estimated doubling of U.S. tight oil production from now until 2025. The IEA suggests approvals of conventional oil projects need to double from their current low levels in order to meet growing demand.