IEA trims 2021 oil demand forecast

  • IEA trims 2021 oil demand forecast

IEA trims 2021 oil demand forecast

The big picture: "Despite the effects of the pandemic on overall auto use, SUVs consumed more oil last year than they did in 2019", IEA said, noting that SUVs used 5.5 million barrels of oil per day last year.

But the agency says the drop in emissions was the result of lower production due to the shock suffered by the oil and gas sector during the worst of the COVID-19 crisis, rather than a product of real efforts made by the industry to prevent leaks and implement better regulation.

After carbon dioxide, methane emissions are the second-largest contributor to global warming.

The IEA estimates that, if mitigation measures are implemented worldwide to fight disinformation, lack of adequate infrastructure and misaligned incentives, it would be possible for the global oil and gas industry to cut today's methane emissions by around three-quarters. Separately, agricultural practices also cause methane emissions.

Publicly listed energy majors and some national oil companies are members of the Oil and Gas Climate Initiative that has set methane reduction targets.

The satellite data suggests Russian Federation, the US, Iraq and Turkmenistan have the largest levels of total methane emissions amongst oil and gas producers in 2020.

A report published Monday by the Paris-based organization found the estimated 10% drop in methane emissions from oil and gas companies past year was largely due to lower production amid a global decline in demand due to the pandemic.

"There is clearly a risk that this downward trend will be reversed by an increase in production to fuel a rebound in global economic activity".

Boosted by Libya's further recovery and modest increases in the UAE and Iraq, crude oil production of OPEC countries reached 25.2 million bpd in December, recording an increase of 150,000 bpd compared to the previous month.

US sanctions have crippled Venezuelan production and Libya's oil industry has suffered from prolonged domestic strife.