On June 14th, Cailian News reported (Editor Zhao Hao) that on Thursday local time (June 13th), the Secretary-General of OPEC, Haitham Al Ghais, issued a statement refuting the International Energy Agency (IEA) prediction that "oil supply will be significantly excessive."

He also pointed out that in order to prevent energy shortages, the world will still need to invest in fossil fuels in the coming decades.

Source: OPEC official website

Earlier this week, the International Energy Agency predicted in its 2024 mid-term oil market report that, driven by expanding production capacity in oil-producing countries such as the United States, global total oil supply capacity will reach nearly 114 million barrels per day by 2030, 8 million barrels higher than demand, which may have a significant impact on the oil market.

IEA believes that Asia's strong demand for oil will be offset by factors such as electric cars and fuel efficiency upgrades. Fatih Birol, the head of the International Energy Agency, said that as the transition to clean energy advances and the economic structure of some major economies changes, global demand for oil is slowing and will peak in 2030.

In response, Ghais said that by 2045, the oil demand of developing countries will increase by 25 million barrels per day as billions of people need basic services such as electricity, gas, and transportation, "people who deny this fact are paving the way for future energy shortages and fluctuations, and opening the door to widening the gap between 'energy-rich' and 'energy-poor' countries."

Ghais' statement, entitled "The peak of oil demand is not on the horizon (not yet arrived)", he pointed out that "OPEC welcomes all advances in the field of renewable energy and electric cars, but it is far from enough to replace (fossil fuels) 80% energy structure."

"We should also remember that the development of renewable energy and electric cars also requires some oil-related products, and their future expansion will increase oil demand," Ghais called for "continuing to invest in the oil industry today, tomorrow and in the coming decades."

"Everyone has the freedom to express their opinions, but it is important that this must be based on the reality we see today," Ghais said, "we need to prioritize energy security, use all available energy, achieve energy affordability, enhance sustainability, reduce emissions, and not limit our energy choices in the face of expanding demand."

Robert McNally, President of consulting firm Rapidan Energy, also believes that if more refineries are not built, there will be a shortage of transportation fuel by 2028. "I haven't seen any evidence that the demand peak is coming soon. The speed of improving car efficiency is not fast enough, and the popularity of electric cars is not fast enough."