Enbridge Predicts Rising Oil Demand Through 2050 as U.S. Supply Grows
Enbridge CEO Greg Ebel is forecasting a robust increase in global oil demand extending through 2050, reflecting one of the industry's more optimistic projections, according to Yahoo Finance. Ebel expects daily oil consumption could exceed 110 million barrels by mid-century, a significant contrast to the International Energy Agency’s forecast of a decrease to 97 million barrels per day.
Ebel attributes this expected growth to ongoing economic expansion, particularly in emerging markets, which continue to favor oil as a key energy source due to its affordability and efficiency. Enbridge’s projections align closely with the Organization of the Petroleum Exporting Countries’ (OPEC) estimate, which suggests a daily demand of 116 million barrels by 2045. These figures stand in stark opposition to conservative forecasts that call for steep reductions in oil consumption to mitigate climate change impacts.
According to Yahoo Finance, Ebel expressed skepticism about scenarios predicting a decline in oil demand to as low as 80 million barrels per day, given that current global usage is around 102.9 million barrels daily, based on U.S. government data.
For Enbridge, which handles about a third of North America's crude oil transportation, the outlook on oil demand is crucial. Despite diversifying its business through significant acquisitions, such as the $28 billion purchase of Spectra Energy Corp. in 2017, Enbridge remains heavily invested in its liquid pipelines sector.
The company is focusing on expanding this sector by enhancing storage and export capabilities at its Ingleside terminal in Texas, based on forecasts that Permian Basin production could rise by 1 to 2 million barrels per day by the end of the decade, according to Yahoo Finance. Ingleside, the largest U.S. oil-export terminal, is consistently breaking its own volume records.
Moreover, Enbridge is considering increasing the capacity of its Mainline oil pipeline system by 100,000 to 150,000 barrels per day by 2026 or 2027. This pipeline is essential for transporting crude from Canada’s oil sands to U.S. refineries.
Enbridge is also eyeing growth in the liquefied natural gas (LNG) sector, as Europe reduces reliance on Russian gas and Asia seeks alternatives to coal. The company currently connects to about 15% of U.S. Gulf Coast LNG export capacity and aims to expand this share to 30% by 2030.
Related News
Related News
- Phillips 66 to Shut LA Oil Refinery, Ending Major Gasoline Output Amid Supply Concerns
- FERC Sides with Williams in Texas-Louisiana Pipeline Dispute with Energy Transfer
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- U.S. Appeals Court Blocks Kinder Morgan’s Tennessee Pipeline Permits
- Malaysia’s Oil Exports to China Surge Amid Broader Import Decline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Marathon Oil to Lay Off Over 500 Texas Workers Ahead of ConocoPhillips Merger
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
Comments