See world oil demand peaking in 2030, says IHS Markit's Daniel Yergin

Daniel Yergin, vice chairman at IHS Markit on Friday said it sees world oil demand peaking in the first half of 2030. He said the change in consumption will not happen overnight, but as incomes rise, people’s energy consumption will rise.

According to Yergin, the world needs $4.5 trillion investment in oil and gas in the next five years, “If it is not there, I think we will see different oil prices than we are seeing today.”

Yergin said that he is seeing companies focusing on reducing emissions, “There will be a lot of economic incentive to reduce carbon emissions.” However, he believes that there will be a mixed energy system for some time because of demand growth.

“I think in 2050 the world is still going to be using a fair amount of oil and natural gas, but it will mean things like carbon capture will have to play a much bigger role than it does today. We still need a lot of innovation and technology development that hasn’t happened yet,” he added.

Further, Yergin believes that after COVID, the next big disruption will come from digitization, “The big winners are the digital companies that have adapted to this year. Maybe after COVID, the next real big disruption is in digitalization and how that affects commerce as well as work.”