Will oil demand peak soon? Here is the view from Saudi Arabia

Saudi Arabian Energy Minister Khalid Al-Falih. (Reuters)

RIYADH: Many of the chief executives of the world’s biggest oil companies see peak in demand for oil looming. This peak may happen, arguably, in only 20 years. However, for Saudi Arabia, the picture is rosier than this.
Last week, the Saudi Crown Prince Mohammed bin Salman said during a panel at the Future Investment Initiative forum in Riyadh that he sees demand growing in the years 2030 to 2040.
There will be new areas for oil demand in the future from compound industries and new forms of petrochemical industries that will use oil differently from the conventional way.
Oil demand is more resilient than most people think and it will be tough for the world to cut the annual demand growth to 1 million barrels per day (bpd) from 1.5 million bpd currently, Saudi Arabia’s Minister of Energy and Industry Khalid Al-Falih said in Riyadh on Oct. 24, on a later panel.
Al-Falih said that demand for fuel from heavy transport, aviation and shipping sectors will keep oil demand rising. Energy demand will grow by 45 percent by 2050 and hydrocarbons will still make up 70 percent of the energy mix then, he added.
The International Energy Agency is giving conservative oil demand projections, Al-Falih said, adding that demand is growing in many areas in the world by healthy rates. He gave the example of India, where oil demand will be outpacing the country’s existing refining capacity.
The minister also said that electric cars, which will be a factor in the fall in demand for motor fuel, will provide opportunities for the Kingdom’s chemical and aluminum industries. This will keep demand for energy high. 
The Kingdom is already embarking on this new wave for petrochemicals. State-run oil giant Saudi Aramco expects to finalize by the end of 2017 plans for a joint oil-to-chemicals project with Saudi Basic Industries Corp. (Sabic), Aramco’s chief executive Amin Nasser was quoted as saying by Reuters on Oct. 24 during his attendance of the forum in Riyadh.
The project, known as COTC, is one of the pioneers in the industry where oil will be used directly to make chemicals without the need to refine it to other feedstock. 
The chemicals complex that will process around 400,000 bpd of crude oil may cost $20 billion or more, and it will be the first major scheme involving the two state giants.