• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 13 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 3 hours CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 8 mins Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 18 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 mins NordStream2
  • 4 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 6 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 4 days Modest drop in oil price: SPRs vs US crude inventory build
  • 4 days 2019 - Attack on Saudi Oil Facilities.
  • 4 hours "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 4 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 6 days Ukrainian Maidan after 8 years
  • 6 days Peak oil - demand vs production

Peak Oil Demand May Be Ten Years Away

The world is past peak coal consumption and may reach peak oil consumption within the next ten years, Alexei Kudrin, the head of the Russian Accounts Chamber, told media this week.

The official noted Russia will need to learn to rely less on oil export revenues over these next ten years. Otherwise, Kudrin added, this will become a serious problem in 20 years.

Meanwhile, investments are necessary now to diversify the Russian economy away from oil, Kudrin said, noting steps being made in that direction, specifically in the digitalization of the economy and in science and innovation.

"Maybe we should have started working in that direction a bit sooner," the official said.

The remarks of the Accounts Chamber's head echo earlier comments made by Russia's deputy financial minister.

"The peak of consumption may have already passed," Vladimir Kolychev told Bloomberg in an interview last year. "The risk is rising in the longer term."

Russia has been paying more attention to the prospect of peak oil demand recently, with the head of the energy committee at the Russian parliament, the Duma, saying in April that "Everything that can be produced should be produced while there is still demand to sell it."

Like other large oil exporters, Russia will be seeking to monetize as much of its oil and gas resources as quickly as it can.

Russia is one of the three biggest oil exporters in the world, alongside Saudi Arabia and the United States. It has enough oil to keep producing at current rates at least until 2080, with enough gas reserves to last for another 103 years. And the state is pouring billions—$110 billion to be precise—into developing new oil reserves in eastern Siberia to tap 100 million tons of new crude annually. That's about a fifth of the country's annual output in 2019.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • ralfy mann on June 12 2021 said:
    71 pct of human beings live on less than $10 daily, and they want to earn and spend more of that on various goods and services, especially basic needs. The amount of oil needed to cover that far exceeds what's available.
  • Alan Dr on June 05 2021 said:
    Growth in oil consumption for transportation has most to do with how much the yearly car sales in the world are in relation to the amount of cars that are at the end of life and are scrapped.

    In saturated markets this percentage of new cars added to the total is lower then in emerging markets but I was never able to find a clear percentage named that defines how much percent of new sales is added to the total cars on the road in the world.

    The number of car sales in the world is around a hundred million so if this number is for example 25% then 25 million cars added to the total of internal combustion engine cars on the road create our yearly growth in oil demand (apart from growth in use of plastics, fertilizer and other use for the production of important chemicals)

    If electric car sales reach this number, growth in oil demand is over and peak demand is a reality.
  • Arch Region on June 04 2021 said:
    Pick oil is in the past. The crime of ecocide may be in the books ten years from now making oil illegal by then.

    Also if oil is still legal, how is it possible to have pick oil in ten years from now when there will be fewer gasoline combustions cars on the road, if any?

    It is prudent to scale down operations for an orderly transition to clean renewable economy.
  • Mamdouh Salameh on June 04 2021 said:
    Since the pandemic It has become quite trendy by the likes of the IEA, Rystad Energy, Shell and BP to talk about peak oil demand being already with us or will soon be and now they are joined by Alexei Kudrin, the head of the Russian Accounts Chamber.

    However, they all share one thing: they are absolutely wrong. I will explain why.

    There can never be a post-oil era throughout the 21st century and probably far beyond because it is very doubtful that an alternative as versatile and practicable as oil, particularly in transport, could totally replace oil in the next 100 years.

    There can never be a peak oil demand either. Global demand for oil will continue to grow fast as a result of rising population from the current 7.9 billion to 9.7 billion by 2050 and growing global GDP expected to rise from $91 trillion now to $266 trillion also by 2050. While a wider use of EVs could slightly decelerate the rise in demand, it could never arrest its growth.

    There are plenty of proven reserves in the world to satisfy rising global oil demand for years to come with advances in technology enabling the world to improve its oil recovery factor (R/F) and finding new oil in the Arctic and the oceans.

    There is equally rising demand for oil projected to hit 114 million barrels a day (mbd) by 2030.This isn’t a sign of peak oil demand.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News