Forecasts about the world’s demand for energy are getting dire. We’ve got a big appetite now, but it’s about to get much, much bigger. The increased pressure could be good news for energy-related exchange traded funds (ETFs).
Worldwide energy demand is forecast to rise by about 40% between now and 2030. According to the International Energy Agency, the supply of oil will need to hit 130 million barrels per day by then, up from the 85 million barrels produced per day in 2008.
Polya Lesova for MarketWatch reports that energy demand will be vastly different should countries limit the long-term concentration of greenhouse gases in the atmosphere to 450 parts per million of carbon-dioxide equivalent. If that’s the case, energy demand would grow by 20% in that time frame.
Spencer Swartz for The Wall Street Journal reports that a new global climate deal limiting the carbon emissions could cut oil consumption in years ahead and tap into alternative energy uses. This would cut global crude demand by about 4 million barrels per day. (Why oil’s run may not be over with).