Structural changes in the energy sector are now moving fast enough to deliver a peak in oil and gas demand by the end of this decade under today’s policy settings.
After the peak, demand is not currently set to decline quickly enough to align with the Paris Agreement and the 1.5 °C goal.
However, if governments deliver in full on their national energy and climate pledges, then oil and gas demand would be 45% below today's level by 2050 and the temperature rise could be limited to 1.7 °C.
If governments successfully pursue a 1.5 °C trajectory, and emissions from the global energy sector reach net-zero by the mid-century, oil and gas use would fall by 75% to 2050.
This new IEA report explores what oil and gas companies can do to accelerate net-zero transitions and what this might mean for an industry, which currently provides more than half of global energy supply and employs nearly 12 million workers worldwide.
Since 2018, the annual revenues generated by the oil and gas industry have averaged close to $3.5 trillion (€3.2 trillion).
Around half of this went to governments, while 40% went back into investment and 10% was returned...
Transitioning to net-zero
