IEA: World energy demand will only fully recover by 2025

IEA: World energy demand will only fully recover by 2025

The IEA gives a scenario where the recovery stagnates, the global economy will recover by 2023, and world energy demand will fully recover by 2025.

At a gas station in Plano, Texas (USA). (Photo: THX / TTXVN)

The International Energy Agency (IEA) said on October 13 that a slow economic recovery after the epidemic of acute respiratory infections COVID-19 would push back the time. world energy demand fully recovered by 2025.

In the annual World Energy Outlook report, IEA provides a baseline scenario where the global economy recovers by 2021 and world energy demand fully recovers by 2023 when the world develops a COVID-19 vaccine and treatment.

However, in the scenario the recovery stalled, global economy will recover by 2023 and world energy demand will fully recover by 2025.

The IEA sees a decline in world energy demand by around 5% in 2020, CO2 emissions from energy by about 7%, and investment in energy by 18%.

Oil demand is expected to decline by 8% and coal consumption has decreased by about 7%, while renewable energy is expected to increase slightly.

Therefore, the IEA considers that it is too early to assess if the COVID-19 pandemic will have the effect of either motivating or hindering governments and energy sectors as countries seek to ensure more sustainable development in this sector .

Policymakers are “lagging behind” and it will take a long while to achieve climate targets using current world policies, said IEA CEO Fatih Birol.

The period of world oil demand growth will end within the next 10 years, but there is no major change in government policies. However, the global economic recovery will soon bring the demand for “black gold” back to the level before the COVID-19 crisis.

The IEA also warned that uncertain oil demand in the future and plunging oil prices in 2020 left oil producers “confused” when making investment decisions, leading to inadequate supply and demand. market volatility in the future.

The IEA predicts investment in oil exploration will increase from a low level in 2020, thanks to oil prices rising to $ 75 a barrel by 2030.

However, it is not yet certain that the above investment will be implemented at the right time and if this happens, which countries or businesses will implement the above activity./.