The oil consumption will decline significantly in 2040 due to environmental regulations, according to the forecast of one of the world’s largest oil companies Exxon. According to the analyze of the energy giant this will happen if all measures to reduce carbon dioxide emissions are met. Under this scenario, the oil consumption will decrease by 0.4% per year and by 2040 will be around 78 million barrels per day. This is 25% below current levels of 98 million barrels per day, calculated by the US Energy Information Administration.
Exxon expects that demand for green energy will grow and the forecast is that in full compliance with environmental targets, the demand for renewable energy will increase by 4.5% per year by 2040.
The calculations of the oil company are part of the report, developed after Exxon’s shareholders approved a resolution on environmental protection. The management then decided to analyze the effects of these regulations.
US President Donald Trump pulled the United States out of the climate agreement signed in Paris. This in part casts doubt on whether the envisaged regulations will be fully implemented.
Exxon’s analysis, however, does not answer the question of how carbon dioxide emissions reduction will affect their business. This is information that many of the shareholders in the company have been expecting for a long time.
In a separate report, Exxon reported controversy on this information that population growth will raise demand for oil by 20% by 2040. However, it does not take into account environmental legislation.