HOUSTON, Nov 13 (Reuters) - Global oil demand will fall
to around 80 million barrels per day by 2035 in a net-zero
environment, and 100 million bpd in the current trajectory
scenario, BP's chief U.S. economist told an energy
conference in Dallas on Wednesday.
Crude oil demand is about 102 million bpd now, and the
forecast assumes renewables and more efficient motor vehicles
increase over that period. But BP's Michael Cohen said the world
will need continued investment in fossil fuels to ensure an
orderly transition to cleaner energy.
Non-OPEC oil supply growth will exceed demand growth over
the next several years, limiting the ability of the Organization
of the Petroleum Exporting Countries to add more barrels to the
global market, Cohen said.
Market changes also will produce a shift in output and
configurations at oil refineries. Refiners will shift their
plants to produce more naphtha to replace gasoline, and there
will be greater integration of oil and petrochemical operations,
Cohen said.
The portion of gasoline compared with other refined products
supplied by refiners will drop to about 15% by 2050, from 25%
today, he said. Automakers will continue to build internal
combustible engine vehicles, and there will be more miles driven
worldwide, Cohen said, but light vehicles will be more
fuel-efficient.
The drop in gasoline demand will particularly affect
European refineries, Cohen said.
"The Atlantic Basin component of refining throughput
declines is the largest of any of the different regions," said
Cohen.
While investment in oil and gas production will remain
stable, there will be a massive increase in spending on
renewable energy, he said.