Global oil demand to cross 100 mln bpd by 2020, says OPEC chief

OPEC General Secretary Mohammad Barkindo on Thursday said that the global oil markets are rebalancing at an accelerating rate and stability is returning.

“We expect demand to pass 100 million barrels per day (bpd) by 2020 and to reach over 111 million bpd by 2040,” Barkindo said, speaking at the Oil & Money conference in London.

He added that OPEC sees demand growing in every year and “there is no peak oil demand for the foreseeable future.”

The oil producers’ group also expects investments to pick up slightly this year and in 2018.

“Oil producers and companies must invest heavily simply to offset the impact of natural decline rates,” Barkindo said, noting that the industry needs to add over 4 million bpd each year just to maintain current production levels.

Talking about last year’s output deal, under which the participating exporters agreed to curb production by 1.8 million bpd, Barkindo said the agreement help lay the foundation to more stable markets. “It is vital that this platform is not only retained, but built upon,” he said.

“Let me stress that we continue to welcome dialogue among other producers outside of the ‘Declaration of Cooperation’, as well as consumers,” Barkindo said. “For instance, we appreciated the initial dialogue we had with US independents at CERA Week in Houston in March,” he added.