Oil demand must fall to 24mn bl/d by 2050 according to the IEA's net zero scenario
Strong policy push needed to reduce oil and gas demand
Mismatch between tightening supply and continued demand will result in continued volatility unless action taken on demand side, says IEA report
Current oil and gas investment is in line with the IEA’s Net-Zero Emissions (NZE) scenario, but stated policies will not be enough to reduce demand and prevent further energy market volatility, the agency warns in its most recent World Energy Outlook. Oil and gas investment is estimated to fall from $481bn in 2019 to c.$356bn by the end of this year—below the NZE threshold of an average $366bn per year up to 2030. Clean energy investment, on the other hand, is only a third of the level needed to meet net zero by 2050. “As the world makes its much-needed way towards net-zero emissions, there is an ever-present risk of mismatches between energy supply and demand as a result of a lack of approp
Also in this section
2 January 2026
Next year may be a defining one for carbon capture, utilisation and storage in the US, despite the institutional uncertainty
23 December 2025
Legislative reform in Germany sets the stage for commercial carbon capture and transport at a national level, while the UK has already seen financial close on major CCS clusters
15 December 2025
Net zero is not the problem for the UK’s power system. The real issue is with an outdated market design in desperate need of modernisation
28 November 2025
The launch of the bloc’s emissions trading system in 2005 was a pioneering step, but as the scheme hits 21 its impact as a driver of decarbonisation is still open to debate
