ExxonMobil’s 2024 Global Outlook Report Highlights Reliance on Oil and Gas Amidst Transition to Lower-Carbon Technologies
Published on October 8, 2024, ExxonMobil’s latest **Global Outlook Report** delves into the company’s predictions for future energy demand, energy resource availability, and the imperative for emissions reduction through 2050. The report underscores the critical role of oil and gas in the evolving energy landscape while emphasizing the need for aggressive yet practical energy transitions.
#### Projected Population Growth and Energy Demand
The world’s population is anticipated to surge from approximately 8 billion today to nearly 10 billion by 2050. This demographic shift will necessitate novel approaches to ensuring reliable, affordable energy that fosters both economic growth and reduced greenhouse gas emissions. The report emphasizes that **access to energy is paramount in driving human development** and enhancing living standards. Currently, around four billion people live below the modern energy minimum, which hampers modern standards of living including housing, infrastructure, jobs, and mobility.
#### Increasing Energy Use Worldwide
ExxonMobil projects a 15% increase in total energy use globally by 2050, driven by the need to lift nations toward the modern energy minimum. This projected increase will enable significant economic growth in developing countries. Conversely, energy use in developed nations is expected to decline by more than 10% due to improved efficiency. The report highlights that **renewable energy sources will play an essential role while oil and natural gas will continue to dominate** the world’s energy mix. For instance, if every new car sold in the world in 2035 were electric, oil demand in 2050 would still be 85 million barrels per day, mirroring the 2010 levels.
#### Role of Oil and Gas in Industrial Processes
The majority of the world’s oil is utilized in industrial processes such as manufacturing and chemical production, as well as heavy-duty transportation like shipping, trucking, and aviation. These services are indispensable for modern life and also fuel future economic growth in the developing world. The report clarifies that the decline in gasoline demand by 2050 does not fully represent the overall oil demand, which will remain substantial due to its extensive industrial applications.
#### Need for Continuous Investment in Oil and Gas
ExxonMobil underscores the necessity for sustained investment in oil and gas operations. The report notes that **global oil supplies will virtually disappear without continued investment**.