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June 14 (UPI) — The International Energy Agency (IEA) stated on Wednesday that global crude oil demand is set to peak before the end of the decade due to the increasing adoption of renewable and alternative energy sources.
The IEA anticipates a significant slowdown in oil demand as the energy transition, a shift away from fossil fuels, gains momentum.
“The shift to a clean energy economy is picking up pace, with a peak in global oil demand in sight before the end of this decade as electric vehicles, energy efficiency, and other technologies advance,” said Fatih Birol, Executive Director of the IEA.
To support this transition, the IEA estimates that $2.8 trillion will be invested in the energy sector globally this year, with approximately $1.7 trillion allocated to cleaner technologies like nuclear power, renewable energy, and electric vehicles.
Investments in solar power alone are projected to surpass capital spending on oil production for the first time.
About $1 trillion will be directed towards more conventional forms of energy such as coal and crude oil.
Despite these comments, Birol has a long history of advocating for alternative energy, particularly electric vehicles.
Last year, the IEA reported that over 10 million electric vehicles were sold, and sales are expected to reach 14 million in 2023, indicating a rapid growth rate.
Birol has also highlighted the impending transformation of the global energy landscape and the automotive industry due to the rise of EVs.
With the IEA predicting significant changes in global energy markets, Birol warns energy companies to carefully consider the pace of change and adjust their investment decisions accordingly.
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