British Petroleum: The era of increased demand for oil is over

The giant British Petroleum oil and gas company expected on Monday, that the era of continuous increase in demand for oil has ended, becoming the first giant company to talk about the end of an era that many believed would last another decade or more.

Bloomberg news agency stated that the company said in a report that oil consumption may never return to the levels recorded before the Coronavirus pandemic.

Bloomberg pointed out that even the most optimistic scenario sees that demand will remain generally stable over the next two decades as the world shifts away from fossil fuels.

In doing so, British Petroleum departs significantly from the belief that oil consumption will continue to grow for decades.

The heads of giant oil companies, ministers of the Organization of the Petroleum Exporting Countries (OPEC) and leading industry figures see oil as the only commodity that can meet the demand of the world’s growing population, as well as the expanding middle class.

British Petroleum expected a different future as oil faces a challenge to its hegemony and may eventually wane. 

Which explains why the company has taken steps that Bloomberg described as the boldest among its peers to date to align its business with the goals of the Paris climate agreement.

British Petroleum forecasts show a 50% decline in consumption by 2050 in one scenario, and up to 80% in another.