Investing.com – Emerging economies are expected to remain the pivotal drivers of global energy demand, underscoring their crucial role in shaping energy markets for the foreseeable future.
Analysts in Wells Fargo The New York Stock Exchange (NYSE:) emphasizes that while developed countries such as the United States continue to consume significant energy resources, the real momentum in energy demand growth is firmly rooted in emerging markets.
In recent years, almost all additional increases in global oil demand have originated from these economies.
For example, in 2023, emerging markets accounted for 94% of the growth in daily oil consumption, demonstrating their huge contribution to the global energy landscape.
Countries such as China and India are leading this increase. China has been a consistent powerhouse in energy consumption, while India has nearly doubled its energy consumption over the past 15 years.
Despite this rapid growth, emerging economies still lag behind developed countries in per capita energy consumption.
This gap indicates not only its ability to continue growth, but also the potential for sustainable demand over the coming decades as it seeks to match consumption patterns in high-income countries.
Such trends demonstrate the structural shift in global energy demand, with emerging markets not only catching up but also reshaping the profile of energy consumption.
Wells Fargo analysts point out that this trajectory is unlikely to diminish soon, as millions in these economies seek to raise their living standards, which is directly linked to increased energy use.
This steady rise underscores the long-term prospects for energy producers and markets to focus on these thriving economies as the main hubs of future demand.
As emerging markets continue to drive this transition, the global energy sector must adapt to meet their specific needs and consumption patterns.
This shift has far-reaching implications for energy investments, infrastructure development, and geopolitical dynamics, ensuring that emerging economies remain at the center of discussions about energy demand and sustainability for decades to come.
