WEO Week: Sectoral transitions to new energy industries
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Oil

The Covid-19 crisis caused a historic decline in global oil demand in 2020, but not necessarily a lasting one. In the absence of major policy changes from governments and more rapid changes in behaviour, global oil demand is set to increase for years to come.

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Key findings

Oil demand forecast, 2010-2026, pre-pandemic and in Oil 2021

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Global oil demand shifts lower after historic collapse

World oil markets have rebounded from the massive demand shock triggered by Covid-19 but still face a high degree of uncertainty that is testing the industry as never before. The forecast for global oil demand has shifted lower, and demand could peak earlier than previously thought if a rising focus by governments on clean energy turns into stronger policies, and behavioural changes induced by the pandemic become deeply rooted.

Global methane emissions from oil and gas operations in the Sustainable Development Scenario, 2000-2030

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Methane emissions from oil and gas remain high despite industry initiatives and government policies

Methane emissions are the second-largest cause of global warming today. Methane emissions come from a range of anthropogenic and natural sources; within the energy sector, from oil, natural gas, coal and bioenergy. The IEA estimates that the oil and gas sector emitted 82 Mt (around 2.5 GtCO2-eq) in 2019. While methane tends to receive less attention than CO2, reducing methane emissions will be critical to avoid the worst effects of climate change. Emissions remain high despite initial industry-led initiatives, government policies and regulations, as implementing abatement options quickly and at scale remains a challenge. Policies will be critical to achieve the 75% emissions reduction by 2030 demonstrated in the SDS, but further innovation and support are needed to better understand emissions levels, make leak detection and repair more consistent, and reduce the overall cost of emissions mitigation programmes.

Reports

Our work

Created in 1979, the EOR TCP evaluates and disseminates the results of research and development of enhanced oil recovery (EOR). Its primary focus is on improving the economics of EOR, increasing the recovery of oil originally in place, and extending reservoir economic life. The activities of the EOR TCP mainly cover information exchange on independent research activities carried out by the participating countries, the results of which are disseminated through annual Executive Committee meetings, two-day workshops and one-day symposia.

Created in 2013, the GOTCP brings together representatives from governments, industry and academia in a global dialogue to explore the role of oil and gas technology in the energy transition. GOTCP aims to catalyse innovation across oil and gas technologies and to provide collaborative opportunities for enhancing national capabilities within both onshore and offshore activities.