Irina Slav from OilPrice.com summarised Wood Mackenzie’s Energy Transition Outlook 2025-26 as follows:
- Global demand for crude oil is projected to continue increasing until at least 2032, indicating that the world is significantly off track in meeting its Paris Agreement goals.
- Despite trillions of dollars invested in the energy transition, fossil fuels—oil, coal, and natural gas—still satisfy approximately 80% of the world’s primary energy needs due to their widespread availability, cost-competitiveness, and deep integration into the energy system.
- The report suggests that the energy transition has slowed down because alternative energy sources like wind and solar face challenges such as weather dependence, output variability, and higher true costs when accounting for backup generation and storage.
Simon Flowers, chief analyst at Wood Mackenzie, cautioned that “the global push to tackle climate change has slowed”, as “rising population, economic growth and societal aspirations, particularly in developing countries, drive energy demand higher, outpacing improvements in energy efficiency”.
