OPEC issued its 2022 World Oil Outlook report this week. In it the cartel predicted global oil demand is going to continue to rise in the medium and long term, despite the West attempting to transition to renewable energy sources. It went on to predict that the oil industry will require trillions of dollars in new investment to meet the growing demand.

OPEC Secretary General Haitham Al Ghais said, “the overall investment number for the oil sector is $12.1 trillion out to 2045,” an increase over last year’s prediction.

The report predicts that global demand for oil will hit 103 million barrels per day in 2023. That is 2.7 million barrels per day above 2022 levels, and the prediction is 1.4 million barrels per day above last year’s predictions for 2023 demand.

Demand outlook for the medium term, leading up to 2027was also increased over previous predictions, increasing the predicted consumption by almost 2 million barrels per day over that period. OPEC upgraded all of its forecasts after seeing a more substantial recovery of the market following the pandemic, as well as a, “strong focus on energy security issues.”

The report notes that even as the rate of growth in the demand for oil slows, “oil is set to retain the highest share in the global energy mix during the entire forecast period.” The cartel added that the primary energy mix would contain a combined market shared of oil and gas which would remain above 50% out to 2045.

By 2030, OPEC predicts that oil demand will reach 108.3 million barrels per day, an increase from its 2021 forecast for the same period. The cartel also lifted its longer term projections, predicting that in 2045, global demand for oil would reach 109.8 million barrels per day, an increase from the 108.2 million barrels per day it predicted last year.