In his recent State of the Union speech, President Joe Biden acknowledged the ongoing need for oil and natural gas production, stating that it would be necessary for at least another decade. But energy experts predict that oil demand will remain near peak levels for years, and possibly decades, with demand for fossil fuels not likely to diminish significantly until after 2050.
S&P Global Commodity Insights, tells Yahoo Finance demand for oil will peak around 2031, as the chart below shows.
While developed nations are working to transition to renewable energy, it will take time to replace existing infrastructure. Developing nations will continue to use fossil fuels as they grow, and increasing populations will lead to more energy consumption.
Related Story: Biden’s Oil Comments Spark Debate Over Energy Production
To avoid energy insecurity and inflation, it is important to transition to green energy while still maintaining access to oil and natural gas supplies. The recent spike in energy prices serves as a reminder of the potential political and economic issues that can arise from market volatility.
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