Energy giant BP is predicting fossil fuel consumption will shrink for the first time in modern history, with peak oil demand now likely in the world’s rear-view mirror.
The forecast in the company’s 2020 Energy Outlook, released Monday, says that global economic activity will partly recover from the COVID-19 pandemic over the next few years, but “scarring effects,” including work-from-home edicts, will lead to slower growth in energy consumption.
While the overall demand for energy will grow, the supply will change: The role of fossil fuels will decrease while renewable energy will increase, the report says.
In the case of oil, BP expects global demand to fall over the next 30 years, driven in part by an increase in electric – and more efficient – vehicles.
Canada is the fourth-largest producer and exporter of oil in the world, the vast majority of which comes from Alberta’s oil sands.