An off-shore oil platform off the coast in Huntington Beach, California on April 5, 2020.
Leonard Ortiz | MediaNews Group | Orange County Register | Getty Images
It’s been a war of words and numbers between two major players in the energy industry – the International Energy Agency and OPEC – as they spar over the future of something crucial to crude producers’ survival: peak oil demand.
Peak oil demand refers to the point in time when the highest level of global crude demand is reached, which will be immediately followed by a permanent decline. This would theoretically decrease the need for investments in crude oil projects and make them less economical as other energy sources take over.
For oil producing countries and companies, it’s existential.
That’s why when the chief of the IEA, an intergovernmental organization that advocates for oil consuming countries, predicted that peak oil demand would be reached by 2030 and hailed the decline of crude as a “welcome sight,” OPEC was furious.
“Such narratives only set the global energy system up to fail spectacularly,” OPEC Secretary General Haitham al-Ghais said in a Sept. 14 statement. “It would lead to energy chaos on a potentially unprecedented scale, with dire consequences for economies and billions of people across the world.” He accused the agency of fear-mongering and risking the destabilization of the global economy.
More broadly, the spat reflects the ongoing clash between climate change concerns and the need for energy security. That juxtaposition was on full display at ADIPEC – the annual gathering whose name stood for Abu Dhabi International Petroleum Exhibition Conference until this year, when it was quietly changed to Abu Dhabi International Progressive Energy Conference.
The United Arab Emirates will be hosting the COP28 climate summit in November and has been marketing its sustainability campaigns, all the while ramping up its crude production capacity in preparation for what it expects to be a growth in future demand. The UAE is OPEC’s third-largest oil producer.
CEOs of oil majors and state oil producers stressed the need for a dual approach, insisting their companies were part of the solution, not the problem, and that an energy transition is not possible without the security and economic support of the hydrocarbons sector.
“I don’t know if we’re going to have peak oil in 2030. But it’s very dangerous to say that we have to reduce investment because that is against the transition,” Claudio Descalzi, CEO of Italian multinational energy company Eni, said Monday during a panel hosted by CNBC’s Steve Sedgwick.
He warned that if oil investment – and therefore supply – drops and fails to meet demand, prices will surge, crippling the economy.
Descalzi acknowledged that burning fossil fuels “is producing lots of CO2,” but added “we cannot shut down everything and rely just on renewables and that is the future, no. It’s not like that. We have infrastructure, we have investment that we have to recover and we have the demand that is still there.”
The IEA wrote in its Aug. 2023 report that “world oil demand is scaling record highs” and is set to expand this year, but added that faster adoption of electric vehicles and renewable power, as well as the West’s decoupling from Russian gas, will hasten peak demand before 2030.
“Based on current government policies and market trends, global oil demand will rise by 6% between 2022 and 2028 to reach 105.7 million barrels per day (mb/d) … Despite this cumulative increase, annual demand growth is expected to shrivel from 2.4 mb/d this year to just 0.4 mb/d in 2028, putting a peak in demand in sight,” the agency wrote in a June 2023 report.
The IEA also outlined its roadmap for Net Zero by 2050, calculating that worldwide oil demand would need to fall to 77 million barrels per day by 2030 and 24 million barrels per day by 2050.
But those figures are staggering when confronted in real-world terms: during the most intense global lockdown period of the Covid-19 pandemic, in March and April of 2020, worldwide daily oil demand was slashed by 20% – something only possible because the economy came to a near-complete standstill. The IEA’s roadmap calls for daily oil demand to be slashed by 25% in seven years’ time.
‘We all strive for the same thing’
OPEC leaders, meanwhile, point to continuing yearly increases in oil demand, particularly from major emerging markets like China and India.
But such a challenge shouldn’t distract from the immense damage to come if no action is taken, climate scientists warn. The U.N. Intergovernmental Panel on Climate Change concludes that fossil fuel emissions must halve within the next decade if global warming is to be contained to 1.5 degrees Celsius above pre-industrial levels. And according to the panel, roughly 90% of global CO2 emissions come from fossil fuels and the heavy industry.
Thus continues the tug-of-war between climate action advocates and the hydrocarbons industry, despite some calls by the latter that they should work together. Oil companies have also been accused of dialing back their climate pledges in recent months following record annual profits.
Speaking to CNBC’s Dan Murphy at ADIPEC, OPEC’s al-Ghais appeared to temper his response to the IEA’s latest forecast figures.
“We respect the IEA fully, of course,” he said Monday. “What we believe in is that we cannot just replace the energy system that has existed for so many years, over a decade or even two. And that’s why we continue to emphasize the importance of investing in oil, as well as investing in renewable energy, hydrogen.”
“And the important thing is the technologies,” al-Ghais added, “because ultimately, we all strive for the same thing, which is meeting the Paris Agreement objectives” of limiting the Earth’s temperature increase to 1.5 degrees Celsius.
That desire is likely to be tested at COP28 when world leaders again convene in the UAE in November to publish a joint communique on climate action.
The sun has set on a frantic day of scrutineering at this year’s Electrek Formula Sun Grand Prix (FSGP), as teams scramble to qualify for a spot on the starting line tomorrow morning. Electrek FSGP 2025 is shaping up to be one of the event’s most attended ever, thanks to a strong showing of first-time and returning schools. But that also means new and unproven vehicles on the track.
Today, I walked through a couple of bays and talked with a few of the teams able to spare a minute; almost all of them were debuting completely new cars that were years in the making. Building a solar car is no easy feat. It’s not just the engineering and technical know-how that’s often a hurdle for them; it’s more often monetary. However, one of the things that makes this event so special is the camaraderie and collaboration that happen behind the scenes.
Northwestern University is back with a completely new car this season, its eighth since the team’s original inception in 1997 during the GM Sunrayce days. Its motor controller, which is responsible for managing the flow of power from the batteries to the motor, was given to them by the Stanford team. Stanford had extras and could spare one for Northwestern, which needed a replacement. It doesn’t stop there. Two members of the Northwestern team (Shannon and Fiona) told me four other teams helped them with a serious tire replacement around 1 a.m. Wednesday morning, saving them from missing important parts of scrutineering.
This is also an exciting year for the West Virginia team, which is celebrating its 35th anniversary as a solar car team, making them one of the oldest teams on the track. With age comes wisdom though: WV is competing again this year with its single-occupant vehicle, Sunseeker. The team ran into issues after last year’s American Solar Challenge (ASC) cross-country event when the vehicle’s control arm, an important part of the suspension that connects the wheels to the chassis, broke. They tell me this year they’re back with a completely redesigned control arm made of both aluminum and steel. Thank you, Hayley, John, and Izzy, for taking the time to talk.
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We’re also seeing new builds this year from the University of Florida, the University of Puerto Rico, NC State, and UC Irvine. Believe it or not, the latter team has never competed in an American Solar Challenge/Formula Sun Grand Prix. This is their first year. UC Irvine doesn’t expect to be on the starting line tomorrow but hopes to be on the track soon after.
University of Puerto RicoUniversity of California Irvine
On the other hand, we have tried-and-proven cars like my personal favorite, Polytechnique Montréal’s Esteban, which undergoes minor improvements each year. I talked a little bit with this team today, and they told me the car’s motor was dropped, disassembled, and cleaned in preparation for the event. Polytechnique Montréal has passed scrutineering and will appear on the starting line tomorrow.
Polytechnique Montréal
Teams that haven’t wrapped up scrutineering in the last three days can still complete it, though doing so will eat into time on track.
You can learn more about the different classes and the specific rules here.
I’ll continue to post more updates as the event continues!
2025 Electrek FSGP schedule
The 2025 Electrek FSGP will again be held at the National Corvette Museum Motorsports Park in Bowling Green, Kentucky, which, interestingly enough, General Motors occasionally uses for Corvette testing and development. A bit of a full-circle moment being so close to the company that started it all.
The event is open to the public and FREE to attend. Come see the solar car race up close!
Racing starts on July 3 from 10am to 6pm CT and continues through July 5 from 9am to 5pm CT.
Featured image via Cora Kennedy for Electrek FSGP/ASC.
Note: The Formula Sun Grand Prix is not in any way associated or affiliated with the Formula 1 companies, FORMULA 1 racing, or the FIA Formula One World Championship.
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Tesla’s Q2 results are in, and they are way, way down from Q2 of 2024. At the same time, Nissan seems to be in serious trouble and the first-ever all-electric Dodge muscle car is getting recalled because its dumb engine noises are the wrong kind of dumb engine noises. All this and more on today’s deeply troubled episode of Quick Charge!
We’ve also got an awesome article from Micah Toll about a hitherto unexplored genre of electric lawn equipment, a $440 million mining equipment deal, and a list of incompetent, corrupt, and stupid politicians who voted away their constituents’ futures to line their pockets.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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Got news? Let us know! Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
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“These ‘OpenAI tokens’ are not OpenAI equity,” OpenAI wrote on X. “We did not partner with Robinhood, were not involved in this, and do not endorse it.”
The company said that “any transfer of OpenAI equity requires our approval — we did not approve any transfer,” and warned users to “please be careful.”
Robinhood announced the launch Monday from Cannes, France, as part of a broader product showcase focused on tokenized equities, staking, and a new blockchain infrastructure play. The company’s stock surged above $100 to hit a new all-time high following the news.
“These tokens give retail investors indirect exposure to private markets, opening up access, and are enabled by Robinhood’s ownership stake in a special purpose vehicle,” a Robinhood spokesperson said in response to the OpenAI post.
Read more CNBC tech news
Robinhood offered 5 euros worth of OpenAI and SpaceX tokens to eligible EU users who signed up to trade stock tokens by July 7. The assets are issued under the EU’s looser investor restrictions via Robinhood’s crypto platform.
“This is about expanding access,” said Johann Kerbrat, Robinhood’s SVP and GM of crypto. “The goal with tokenization is to let anyone participate in this economy.”
The episode highlights the dynamic between crypto platforms seeking to democratize access to financial products and the companies whose names and equity are being represented on-chain
U.S. users cannot access these tokens due to regulatory restrictions.