Oil Demand to Rise Through 2032

While California politicians and environmental activists continue to push policies aimed at phasing out oil production, the demand for crude oil is heading in the opposite direction. A new report from Wood Mackenzie projects that oil demand will continue rising through at least 2032.

Despite trillions of dollars invested worldwide in renewable energy, fossil fuels such as oil, coal, and natural gas still make up about 80% of the global energy consumption.

This is not because of a lack of ambition or awareness, but because of reality. Energy systems built over a century cannot be replaced overnight. Oil remains essential to the manufacturing, transportation, agriculture, and technology sectors that power modern economies.

According to Wood Mackenzie, the global energy transition has slowed considerably. Wind and solar power face inherent limitations such as weather dependence, output variability, and the hidden costs of backup generation and storage. These are all things that should not come as a surprise to anyone.

Fossil fuels continue to offer unmatched reliability and cost-competitiveness. Simply put, CIPA members remain indispensable, even as states and nations pursue other technologies.

CIPA reminds policymakers that California is not immune to this global reality. Even if every combustion engine in the state were banned tomorrow, California would still need every barrel of oil produced here, and more, to sustain daily life. Oil is not just for gasoline. It is the foundation for hundreds of everyday products, from pharmaceuticals and fertilizers to building materials, medical devices, and technology components.

If policymakers continue to restrict domestic production, the state and the nation will face higher energy prices, deeper dependence on foreign suppliers, and greater vulnerability to global disruptions.

CIPA will continue to advocate for policies that reflect economic reality, not political fantasy. Reliable, affordable energy starts at home.