OPEC calls for more fossil fuel investment to prevent shortfall, dismisses peak oil demand prediction

Published

11 months ago

June 13, 2024

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The head of OPEC said Thursday the world will need to invest in fossil fuels for decades to come in order to prevent an energy shortage, dismissing predictions that oil demand will peak in the near future.

OPEC Secretary General Haitham Al Ghais said oil demand will grow by 25 million barrels per day in the developing world through 2045, with China and India alone contributing 10 million bpd, as billions of people need access to basic services such as electricity, cooking gas and transportation.

“Those that dismiss this reality are sowing the seeds for future energy shortfalls and increased volatility, and opening the door to a world where the gap between the ‘energy haves’ and ‘energy have nots’ grows even further,” Al Ghais said in a statement.

The OPEC chief called for “continued oil industry investment, today, tomorrow, and many decades into the future given the products derived from crude oil are essential for our daily lives.”

OPEC’s predictions of future demand stand in stark contrast to the International Energy Agency, whose membership is primarily developed economies in North America, Europe and Northeast Asia.

The IEA warned Wednesday the world will face a massive surplus of oil in the coming years as production increases while demand slows and ultimately peaks by the end of the decade. Oil supply capacity will rise to 114 million per day by 2030, 8 million barrels more than global demand, according to the IEA.

While oil demand will remain strong in Asia in the coming years, those gains will be offset by the adoption of electric cars, fuel efficiency and the declining use of oil for electricity generation in the Middle East, according to the IEA.

The looming surplus threatens to upend OPEC’s efforts to support prices and will challenge the rapid growth of the U.S. shale industry, according to the IEA. Oil companies should consider adjusting business strategies to prepare for the changes, IEA chief Fatih Birol said in a statement.

OPEC’s Al Ghais rejected those predictions as “dangerous, especially for consumers and could lead to unprecedented volatility.”

Helima Croft, global head of commodities strategy at RBC Capital Markets, said everything would have break perfectly in terms of clean energy subsidies for the IEA’s predictions to come true.

Gains made by the far right in the European Union’s recent parliamentary elections and a potential Republican victory in the November U.S. elections are headwinds for the energy transition, Croft said.

“I’m just not sure that we’re facing the type of policy environment that could see this being realized, before we even talk about the demand side of the situation,” Croft said in an interview on CNBC’s “Last Call” Wednesday.

Robert McNally, president of the consulting firm Rapidan Energy, sees a shortage in transportation fuel by 2028 if more refineries are not built.

“I see no evidence of this imminent peak demand,” McNally said on “Last Call.” “Efficiency gains in cars aren’t rising fast enough and EVs can’t come fast enough.”

“We’re going to be really tight,” McNally said.

Deutsche Bank and Citi, however, see OPEC coming under pressure in the coming years. OPEC+ announced plan to roll as much as 2.5 million barrels per day of oil back onto the market from October through September 2025.

It is “inconceivable that the market could absorb anything close” to that amount of oil, Deutsche analyst Michael Hsueh told clients in a note last week.

Citi analysts see a substantial oil surplus in 2025 as production keeps growing in North America, Brazil and Guyana, while demand slows due to energy efficiency improvements and electric vehicle adoption. The price of global benchmark Brent could drop to $60 per barrel next year as a consequence, according to Citi.

“Without supply disruptions, OPEC+ looks hard-pressed to return oil to market, without also accepting a lower price range,” Citi’s commodity analyst told clients in a note this week.

Environment

U.S. crude oil prices fall more than 4% after OPEC+ agrees to surge production in June

Published

7 hours ago

May 4, 2025

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U.S. crude oil prices fall more than 4% after OPEC+ agrees to surge production in June

Logo of the Organization of the Petroleum Exporting Countries (OPEC)

Andrey Rudakov | Bloomberg | Getty Images

U.S. crude oil futures fell more than 4% on Sunday, after OPEC+ agreed to surge production for a second month.

U.S. crude was down $2.49, or 4.27%, to $55.80 a barrel shortly after trading opened. Global benchmark Brent fell $2.39, or 3.9%, to $58.90 per barrel. Oil prices have fallen more than 20% this year.

The eight producers in the group, led by Saudi Arabia, agreed on Saturday to increase output by another 411,000 barrels per day in June. The decision comes a month after OPEC+ surprised the market by agreeing to surge production in May by the same amount.

The June production hike is nearly triple the 140,000 bpd that Goldman Sachs had originally forecast. OPEC+ is bringing more than 800,000 bpd of additional supply to the market over the course of two months.

Oil prices in April posted the biggest monthly loss since 2021, as U.S. President Donald Trump’s tariffs have raised fears of a recession that will slow demand at the same time that OPEC+ is quickly increasing supply.

Oilfield service firms such as Baker Hughes and SLB are expecting investment in exploration and production to decline this year due to the weak price environment.

“The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels,” Baker Hughes CEO Lorenzo Simonelli said on the company’s first-quarter earnings call on April 25.

Oil majors Chevron and Exxon reported first-quarter earnings last week that fell compared to the same period in 2024 due to lower oil prices.

Goldman is forecasting that U.S. crude and Brent prices will average $59 and $63 per barrel, respectively, this year.

Catch up on the latest energy news from CNBC Pro:

Environment

Chicago plans more, and more equitable public charging as EV sales climb

Published

11 hours ago

May 4, 2025

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Chicago plans more, and more equitable public charging as EV sales climb

More public EV charging, including curbside, envisioned in Chicago plan — DC fast charging stations in Chicago; via EVgo.

Electric vehicles’ share of the market continues to climb in America’s second city, with BEV registrations up more than 50% in the first quarter of 2025 compared with the same period last year. Great news, but charging hasn’t up – but a new plan from Chicago Department of Transportation aims to build up enough infrastructure for the city to keep up.

In a bid to keep up with the rapid growth of EVs, Chicago Department of Transportation (CDOT is currently seeking public feedback on a plan called “Chicago Moves Electric Framework.” The city’s first such plan, it outlines initiatives that include a curbside charging pilot through the city’s utility, ComEd, and expanded charging access in key areas throughout the city.

Unlike other such plans, however, the new plan aims to focus on bringing electric vehicle charging to EIEC and low income communities, too.

“Through this framework, we are setting clear goals and identifying solutions that reflect the voices of our residents, communities, and regional partners,” said CDOT Commissioner Tom Carney. “By prioritizing equity and public input, we’re creating a roadmap for electric transportation that serves every neighborhood and helps drive down emissions across Chicago.”

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Neighborhoods on the south and west sides of Chicago experience a disproportionate amount of air pollution and diesel emissions, largely due to vehicle emissions according to CDOT. Despite that, most of Chicago’s public charging stations are clustered in higher-income areas while just 7.8% are in environmental justice neighborhoods that face higher environmental burdens.

“Too often, communities facing the greatest economic and transportation barriers also experience the most air pollution,” explains Chicago Mayor Brandon Johnson. “By prioritizing investments in historically underserved areas and making clean transportation options more affordable and accessible, we can improve both mobility and public health.”

The Framework identifies other near-term policy objectives, as well – such as streamlining the EV charger installation process for businesses and residents and implementing “Low-Emission Zones” in areas disproportionately impacted by air pollution by limiting, or even restricting, access to conventional medium- and heavy-duty vehicles during peak hours.

The Chicago Moves Electric Framework includes the installation of Level 2 and DC fast charging stations in public locations such as libraries and Chicago’s Midway Airport, “supporting not only personal EVs but also electric taxis, ride-hail and commercial fleets.”

Chicago has a goal of installing 2,500 public passenger EV charging stations and electrifying the city’s entire municipal vehicle fleet by 2035.

Electrek’s Take

Chicago Drives Electric | ComEd Press Conference — ComEd press conference at Chicago Drives Electric, 2024; by the author.

I hate to sound like a bed-wetting liberal here, guys, but Chicago is getting EVs absolutely right with big utility incentives on both vehicles and infrastructure, a governor willing to stand behind smart environmental policy, and a solid push for more and better infrastructure in the areas where they’ll do the most good. They’re even thinking of the children.

Here’s hoping more cities follow suit.

SOURCE: ComEd, via Smart Cities Dive; featured image by EVgo.

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Environment

Meet Bodo – the 35 mph electric golf cart that thinks it’s a G-Wagen

Published

16 hours ago

May 4, 2025

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Meet Bodo – the 35 mph electric golf cart that thinks it's a G-Wagen

Bodo G-Wagon electric golf cart; via Mecum Auctions.

With a fully-enclosed, G-Wagen-inspired body and an 80 mile electric range, the Bodo G-Wagon golf cart is the NEV you need when you decide it’s time to get serous one-upping the rest of the Palm Beach country clubbers.

If you love the look of the $230,000 Mercedes-Benz G580 off-roader, but think the 579 hp, 6,800 lb. electric 4×4 is probably overkill for occasional trips to the golf course and country club, this G-Wagen-inspired golf cart might be just what you’re looking for.

The shiny black 2024 Bodo G-Wagon sold at Mecum Auctions last month for $31,900, which seems like it might not be a lot of money to the sort of person who decides to take a flyer on a goofy, limited-use EV that ships with real, metal doors, power windows, heating and air conditioning, fully digital instrument cluster and infotainment, and a “posh,” caramel leather interior.

It even has windshield wipers, power steering, and a rear-seat entertainment system that’s built into the front headrests!

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It’s really nice in there

Under the hood, the Bodo packs a 15 kW (20 hp) electric motor drawing power from a 10 kWh li-ion battery that won’t deliver a scorching 0-60 mph time (it only goes 35), but will deliver you and your buddies from one end of any golf course in North America and back several times over, thanks to the G-Wagon’s 80 mile range.

The official Mecum Auctions listing goes into a bit more detail, and I’ve included it here, in case it gets deleted after a while and you’re just finding this for the first time in 2027:

Be the envy of any country club or golf community showing up with this 2024 Bodo G-Wagon Golf Cart. Perhaps more appropriately known as an E-Wagon, this baby G-Wagon is powered by a 15kW motor with a 10kWh lithium battery. Boasting an 80-mile range and a 35 MPH top speed, the Bodo is an enclosed, luxury golf cart that pampers occupants with heating and air conditioning, rear-seat entertainment, power windows, power locks and a posh, caramel-colored interior. With the Bodo fitted with power steering and 4-wheel power disc brakes with brake boost, drivers will think they’re in a full-size G-Wagon, thanks to the multiscreen entertainment cluster, the rearview camera, windshield wipers, turn signals, running lights and so much more.

Finished in black with the right amount of brightwork, the overall vibe is one of jaw-dropping, smile-inducing fun. While the Bodo would be an excellent choice for any golf community, it should also prove to be hugely popular around a race track or car condo community as well, or maybe even a neighborhood with its own airplane runways. Over the past decade in particular, the demand for unique, luxury golf carts has been on the rise, and understandably so. The number of luxury communities with specific interests in sports, aero and auto has also been on the rise, with people buying homes in these exclusive locations to better engage with like-minded people. All too often a golf cart is the perfect way to get around these gated neighborhoods, and this one is enclosed, comes with the amenities of a full-size car and is infinitely more stylish.

MECUM AUCTIONS

You can check out a few more photos of the 2024 Bodo G-Wagon golf cart that sold at Mecum, below – and if you want one for yourself, you’re in luck! I found this brand-new 2025 “G600 E-Wagon” (in white) for $23,900 at Gulf Carts in Santa Rosa Beach, Florida. Head on down to the comments and let us know if you buy it.

G-Wagon golf cart gallery

SOURCE | LOTS MORE PHOTOS: Mecum Auctions.

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