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IEA Outlook Restores Current-Policies Lens, Sees Oil and Gas Growth Through 2050

The IEA refocuses on outcomes from existing policies to signal slower transition momentum.

Sheep graze under solar panels in Hainan prefecture of western China's Qinghai province on Tuesday, July 1, 2025. (AP Photo/Ng Han Guan)
FILE - Workers put switches and connectors on solar panels after they come out of automated framing at a ReNew solar panel manufacturing plant on the outskirts of Jaipur, India, Aug. 21, 2025. (AP Photo/Manish Swarup, File)
FILE - Workers install panels at a solar project May 21, 2025, in Galena, Alaska. (AP Photo/John Locher, File)
Daphne Dixon's electric vehicle is plugged into a Level 2 EV charger Saturday, Oct. 11, 2025, in Norwalk, Conn. (AP Photo/Heather Khalifa)

Overview

  • The reinstated Current Policies Scenario projects oil demand reaching about 113 million barrels per day by mid-century with continued gas growth as coal use starts to decline this decade.
  • Under existing policies, global CO2 emissions remain near today’s levels in 2050 and fall only 22% in the stated-policies case, with 1.5°C exceeded in all scenarios except a net-zero pathway reliant on carbon removal.
  • Electricity demand rises much faster than overall energy use across scenarios, with renewables led by solar growing the quickest even as the outlook slightly trims expected additions.
  • Surging power needs from data centers and AI bolster LNG demand, with roughly 300 bcm of new export capacity coming online by 2030 after a wave of 2025 approvals and an estimated $580 billion in data center investment outpacing annual spending on new oil supply.
  • The report’s framing draws political scrutiny, as U.S. officials press for fossil expansion and climate groups like Ember contend the analysis understates the pace of clean-tech adoption.