Qatar’s oil demand has dropped below 30% for the first time. Renewables and electric vehicles are reshaping global energy markets. The International Energy Agency (IEA) highlighted these trends in its Global Energy Review 2025.
Energy demand grew by 2.2% last year, surpassing the 1.3% yearly average from 2013 to 2023. However, Qatar’s oil demand has fallen below 30%, a major shift from 46% fifty years ago.
Electricity use rose by 4.3% last year due to heatwaves, data centers, and industrial electrification. Renewable energy and nuclear power supplied 80% of the additional electricity worldwide. For the first time, these sources made up 40% of total electricity generation.
Despite the shift, Qatar’s oil demand remains strong in the Middle East. Experts believe Gulf countries will adapt to these changing trends. Qatar’s oil demand stays essential for global markets even as renewables grow.
Ole Hansen from Saxo Bank predicts that oil prices may not rise much in the medium term. However, demand for Qatar’s oil should remain steady, especially as non-OPEC+ production slows down.
The IEA reported that 7 gigawatts of nuclear power were added worldwide in 2024. Six large reactors were connected to grids, including one in the UAE.
Among fossil fuels, natural gas demand rose by 2.7% last year, marking the highest increase. Qatar’s oil demand grew by only 0.8%, partly due to electric vehicles. These now make up 20% of total car sales. Coal use increased by 1%, driven by cooling needs in China and India.
Arun Leslie John of Century Financial says lower oil demand could slow economic growth in the Middle East. However, Qatar may not face major challenges due to its low breakeven oil prices.
Countries like Kuwait, Iraq, and Saudi Arabia, which depend more on oil, may see bigger impacts. Economic strategies such as Qatar’s National Vision 2030 aim to lessen these effects and promote stability.
