Global oil demand to peak before 2030: IEA

The world is on the brink of a new age of electricity with fossil fuel demand set to peak by the end of the decade, meaning surplus oil and gas supplies could drive investment into green energy, the International Energy Agency said on Wednesday.

But it also flagged a high level of uncertainty as conflicts embroil the oil and gas-producing West Asia and Russia and as countries representing half of global energy demand have elections in 2024.

“In the second half of this decade, the prospect of ample — or even surplus — supplies of oil and natural gas, depending on how geopolitical tensions evolve, would move us into a very different energy world,” IEA Executive Director Fatih Birol said.

“Surplus fossil fuel supplies would likely lead to lower prices and could enable countries to dedicate more resources to clean energy, moving the world into an ‘age of electricity’,” Birol said.

In the nearer term, there is also the possibility of reduced supplies should the West Asia conflict disrupt oil flows.