Good morning; here's what the Oilman has for you today:

• Oil Demand Is Going Nowhere

• Wind And Solar Equals More Emissions

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Oil Demand Is Going Nowhere, Says OPEC

Oil demand is not just not shrinking but expanding, and this will continue at least until 2045.

That’s the sum-up of a statement by the OPEC’s secretary general, who saw demand gaining 23% by 2045 to reach 110 million barrels daily.

What do you bet the IEA will have something to say about this?

OPEC is One Very Confident Cartel

Haitham al Ghais wasn’t the only one busting bubbles at the Energy Asia conference in Malaysia on Monday.

Aramco’s chief executive also chimed in, saying that the total phase-out of oil and gas was a “fanciful idea.”

The Oilman’s got to give it to the man; he knows how to put things delicately.

And he knows exactly how things stand with demand for energy and petroleum products.

Why else would Aramco sign an $11-billion deal with TotalEnergies for a new petrochemical facility in Saudi?

Because they know that energy demand is strong, going to get stronger, and there are no alternatives to oil and gas.

Growth Vs. Emissions

There’s a simple reason the two OPEC heavyweights were so confident about oil demand.

That simple reason is that when faced with the choice of emissions or affordable energy, most countries in their right mind would choose affordable energy.

It’s not called energy security for nothing.

And those that choose emissions do not end well. I’m looking at you, Sri Lanka.

When Sri Lanka’s president decided to go full-on net zero, it only took a year for the economy to collapse.

No one would risk this, even Germany, which is why it’s building LNG import terminals.

And that’s why oil—and gas—demand will keep growing.

Because they’re affordable. And reliable.

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As Wind And Solar Grow, So Do Emissions

The new Statistical Review of World Energy edition is out, and it’s got a shocking message.

Last year, wind and solar deployments grew by 266 GW. Emissions grew, too.

And oil, gas, and coal remained unchanged as dominant sources of energy.

Shocked Much?

The annual report, previously authored by BP, lamented the fact that hydrocarbons still account for 82% of energy supply.

That must be especially painful when you’ve got this huge increase in wind and solar.

Even more painful when you learn that energy demand increased by… 1%.

Here are some more shocking outtakes:

• Oil consumption grew by 2.9 million bpd

• Coal demand actually rose

• Gas provided 24% of primary energy consumption

All this in a year when the share of wind and solar in electricity generation rose to a stunning 12%.

That 266 GW in new capacity was record growth.

What gives?

Busting the Myth of Low-Carbon Intermittents

Wind and solar are hailed as a low-carbon alternative to hydrocarbons, but they’re not.

It’s good to see it proven by the Energy Institute, KPMG, and Kearney, which produced the report.

The reason they’re not low-carbon is that producing the components is highly energy-intensive.

You can guess where that energy comes from.

That’s right: hydrocarbons.

And that’s why emissions rose with more wind and solar.

Talk about ironic.

Around the Global Patch

 🇸🇦 Potential Saudi oil cut looms.
🌏 Asia's fossil fuel dependency persists.
🇷🇺 Chaos erupts, violent clash unfolds at Russian gas field.

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