What’s going on here?
Experts think the world’s thirst for oil will peak sooner than we’d thought.
What does this mean?
The International Energy Agency (IEA) just dropped some sunny new predictions, and they’ll be music to environmentalists’ ears. The organization has brought forward its projections, saying that the use of our top three fossil fuels – oil, gas, and coal – is going to start falling before 2030, thanks to the speedy rise of renewable energy and EVs. It also pointed out that China’s changing things up, shifting from heavy industry to less energy-hungry sectors like services. And given China’s outsized appetite for oil and gas in the past decade, that’s a big deal.
Why should I care?
For markets: Easy does it.
If we’re sidelining fossil fuels, then there’s a risk that oil and gas giants’ pricey operations will become “stranded assets” – basically, financial dead weight. But let’s be real: the world can’t quit its oily habit cold turkey, so for now, it’s going to be less “hit the brakes” and more “ease off the gas”. After all, if we skimp too much on fossil fuels, then we might face energy hiccups and price spikes. And remember, many oil bigwigs are also key players in the green transition – so it’s not a total loss for them either.
The bigger picture: Going green, seeing red.
Green’s the dream, but it’s not all smooth sailing. The "anti-green" gang is picking up steam, and it’s making the whole green living thing a bit tougher – especially with the rising cost of living. And it’s not just talk: Strive Asset Management, which is swimming against the tide of activists’ concerns and the green wave, has already managed to rack up over a billion dollars in assets. So don’t go assuming that the path to peak oil demand is going to be a smooth one.
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