The world is set to breach the critical 2∘C carbon budget limit by the early 2040s, according to the latest modeling from BP, confirming a major failure in the global climate response. The energy major has increased its long-term oil and gas demand forecasts, signaling the transition is too slow to secure the 2050 net-zero target.
BP’s revised figures indicate a sustained appetite for hydrocarbons. Oil consumption in 2050 is now projected to hit 83 million barrels per day (b/d), an 8% increase from the previous 77 million b/d estimate. Natural gas demand is similarly forecast to remain elevated at 4,806 billion cubic meters annually in 2050. Furthermore, BP has delayed the expected date of peak oil demand by five years, now projecting 103 million b/d in 2030.
The primary reason for this slow transition is the overriding focus on national energy security, amplified by geopolitical factors. BP’s chief economist attributes the trend to the war in Ukraine, Middle East conflicts, and rising trade tariffs. This drive for self-sufficiency risks encouraging reliance on domestically produced fossil fuels, even as it creates an incentive for some countries to accelerate towards low-carbon ‘electrostates.’
The report warns that the consequences of this delay are escalating. Breaching the carbon budget early will significantly increase the economic and social costs required for future climate mitigation. To hit the net-zero goal, BP states that oil demand must fall aggressively to about 35 million b/d by 2050, illustrating the massive gap between necessity and reality.
Despite the necessary and rapid growth of renewables—projected to meet over 80% of new electricity demand by 2035—oil will remain the largest single source of primary global energy supply, holding a 30% share in 2035. Renewables are set to rise from 10% to 15% of the primary energy supply by 2035 but are not expected to surpass oil’s market share until the late 2040s, highlighting the stubborn inertia in the global energy system.