43 ANNUAL REPORT 2022 STRATEGY & OUTLOOK GROUP CEO REVIEW EMBRACING THE ENERGY TRANSITION In general, forecasts show that the growth of energy demand locksteps with the growth of gross domestic product (“GDP”) and the global population rise, however its overall rise is moderated by efficiency improvements. Despite the rapid growth in consumption of energy services in the coming decade, driven mainly by the growing global middle class and higher digital literacy and adoption, studies show that global energy demand will start to plateau around the 2030s and remain relatively flat through to mid-century, with an annual growth rate of 0.5% to 2050. Further, forecasts show that the energy demand will not develop uniformly across sectors and economies. Advanced economies will have a lower energy demand, while many emerging markets and developing economies having a higher energy demand in the coming decades. Oil & gas will continue to play an essential role in the global energy mix, as we steadily transition to various renewable energy sources. Energy supply (EJ) Year 500 600 700 400 300 200 100 0 Source: IEA WEB (2022), DNV ETO (2021) 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Coal Oil Natural Gas Nuclear Fuels Hydropower Bioenergy Geothermal Solar Wind Global Total Energy Supply by Source (1990 − 2050)
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