In 25 years, the majority of the energy market will still be dominated by fossil fuels, according to Exxon.

• According to Exxon, oil demand will level off after 2030, remaining at approximately 100 million barrels per day through 2050.
• Even if every new car sold in 2035 is an electric vehicle, the oil major predicts that oil demand will remain at 85 million bpd in 2050.

Despite efforts to transition away from fossil fuels, oil and natural gas will still account for more than half of the world's energy mix in 2050, according to a forecast published on Monday.

The International Energy Agency reports that fossil fuels currently account for approximately 80% of the world's energy mix. According to Exxon's projections, oil demand will level off after 2030 but will remain around the current 100 million barrels per day through 2050.

The IEA has stated that the path to achieving the world's climate goals is becoming increasingly difficult due to the stubborn demand for oil and gas, which is hindering the effort to reduce carbon dioxide emissions to net-zero by 2050 in order to keep global warming at 1.5 degrees Celsius.

While the demand for oil to produce gasoline may decrease over the next 25 years, the majority of crude oil consumption will still be used for manufacturing, chemical production, and heavy transportation, such as aviation, according to Exxon's forecast.

Despite the projection that every new car sold in 2035 will be electric, the oil major anticipates that oil demand will remain at 85 million bpd in 2050, which is approximately the same level as in 2010.

The IEA reports that global capacity of renewable energy sources increased by 50% in 2023 compared to the previous year, while electric vehicle sales are predicted to reach 17 million this year.

The oil industry is resisting efforts to reduce production in order to achieve climate objectives. In March, Saudi Aramco CEO Amin Nasser stated that the energy transition is unsuccessful, characterizing the notion of phasing out oil and natural gas as an "illusion" as demand persists to increase in developing nations.

To maintain global demand, Exxon stated that new project investments are necessary. As per the oil major, the decline in production from shale formations, which depletes more rapidly, would result in an annual rate of 15%.

If investment in new oil production stops, global oil supplies will drop dramatically, causing a supply shock, soaring energy prices, and an economic crisis, according to Exxon. Specifically, the company predicts that without new investment, global oil supplies will decline by more than 15 million bpd in the first year.