ExxonMobil's 2050 oil predictions: Key takeaways

ExxonMobil (XOM) maintains a bullish stance on the future of crude oil, projecting that global demand will remain above 100 million barrels per day through 2050. Yahoo Finance senior reporter Ines Ferré delves into Exxon Mobil's Global Outlook, which extends to 2050 — discussing how factors like population and energy usage has contributed to the forecast.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Angel Smith

Video Transcript

A bullish outlook for crude oil.

ExxonMobil saying that it now expects crude demand to stay above 100 million barrels per day, a forecast that is 25% higher than top European rival BP.

Let's get to Yahoo!

Finances and N, right?

Who's closely following this story for us?

Hi, N. Hi, Shana.

Yeah, and ExxonMobil every year puts out its global outlook and this is its global outlook, as you just mentioned, uh, for 2050 where it says that it will be a vastly different looking world, Uh, by then, uh, talking about demand and that demand staying above 100 million barrels per day, as you just mentioned.

This differs with other entities like the International Energy Administration Association Agency.

Also, as as you just mentioned, deferring with BP on where it sees demand but underpinning ExxonMobil's bullish view on oil.

Part of this has to do with the world population, which it sees going from 8 billion today to nearly 10 billion by 2050.

And that's really adding to energy demand, the developing nations adding energy demand.

And this is something that ExxonMobil has talked about over and over before, and other oil companies as well is that you have these developing countries that need access to inexpensive energy.

And so, therefore, this will keep fueling the demand for fossil fuel as far as electric vehicles are concerned.

For example, it's saying that if every new car sold in the US by in 2035 were electric crude oil demand would still be at about 8 85 million barrels per day.

That's the same as it was in 2010.

So, uh, energy demand being dominated again by the developing nations, and also by renewables as well the the push for renewables.

So they are seeing that oil and gas is going to be around for a long time.

And remember that when you talk about fossil fuels, when you talk about oil and gas, you're not just talking about, uh, electricity.

You're not just talking about, um, the anything that has to do with gasoline, uh, or fuels.

Um, you're also talking about chemicals as well.

Almost everything that you see around you includes chemicals that are derived in some form or fashion from fossil fuels, and that will only accelerate into the future as you need products to con to continue this renewable push.

Guys.

All right.

And thank you so much for joining us on that really appreciate it.