Emerging markets will overtake the Western world in terms of the collective nominal size of their economies by 2050, with China and India as the second and third largest behind the US, according to Capital Economics’ long-term forecasts.
Petrostates are currently confronted with significant challenges arising from the ongoing energy transition. The diminishing demand for oil and gas is exerting downward pressure on commodity prices, which in turn threatens future revenue streams.
The COP28 talks in Dubai to save the planet from a climate catastrophe look like they are going to fall at the first fence as the oil lobby and some big economies push for a “phasing down” of fossil fuels, rather than the “phasing out”.