The world still needs oil decades from now and that peak oil demand is just ‘hype.’

Analysts and top commodity traders see oil demand peaking at some point in the 2030s, but oil companies say that peak oil is nowhere in sight and there is still room to grow as global energy demand will continue to rise in the foreseeable future.

In a report carried by Al Arabiya English, it quoted chairman of the world’s largest oil company Saudi Aramco, Yasir Al-Rumayyan as saying at the recent International Petroleum Technology Conference (IPTC) in Dhahran, Saudi Arabia that energy transitions “take decades, even centuries” to complete and the industry should continue to think in decades.   

The industry environment can keep oil and gas companies like Sapura Energy Berhad and other players as being relevant for decades to come, because the world will still need a lot of oil, and huge investments in new production will be needed to replenish maturing oil fields.

The company is forecasted to record an annual earnings growth of 54.7pc in the next 1 to 3 years, which is considered above the average market growth based on estimation of 14 analysts mentioned in a market report by SimplyWall.St.

Sapura Energy has a total order book to date of RM15.1bil.

Sources: Linkedin Azlan Abu Bakar