"Oil will remain a key component in the global energy balance for the next 25 years at least", Alexander Kurdin, Head of the Department for Strategic Studies of the Analytical Center, commented on Russia-24 TV channel.
Demand for Oil Will Grow
When oil prices fell by a factor of three within 18 months, a lot of market players and analysts were taken by surprise. The speed and scale of the fall gave rise to a flurry of conspiracy theories that the fall in oil prices may have been orchestrated deliberately as a result of geopolitical tensions. Despite that, it has to be noted that the structure of the global energy market is changing radically. Some experts even go as far as to say that the era of hydrocarbons is nearing its end. Alexander Kurdin was asked whether this was the case on the program Geoeconomica on Russia 24.
"At the moment, forecasts are made until 2040. These lead us to conclude that while the share of oil in the global energy market may in fact contract, overall demand for oil will to continue to grow. The only question is how fast it is going to grow", the expert commented on the current situation.
Mr. Kurdin also talked about an experiment made in California in the 1990s. "The government of the state then decided to promote low carbon energy and made it compulsory for all leading automakers to start producing electric cars. But before long, the initiative fizzled out", the expert said. "And then in the mid 2000s, experts started looking into the situation and even made a documentary about it entitled Who Killed the Electric Car? One simple suggestion was that the oil companies’ lobby had been trying to help their business", Mr. Kurdin explained.