According to the annual energy outlook from the International Energy Agency, global demand for oil will peak this decade. These developments are sure to have a great impact on the world’s economy and environment. The baseline scenario suggests that by the late 2020s, the world will be consuming 102 million barrels per day, while by mid-century, this volume will drop to 97 million barrels per day. Demand for other fossil fuels such as natural gas and coal is also expected to decline in the medium term. After passing its oil consumption peak, the world will have to decide where to move next. Most probably, there won’t be a rapid plunge in crude demand but rather a wave-like consumption pattern that will last for several years. The energy agency believes that most countries will smoothly transition to clean energy as the tendency to avoid global warming, which is closely linked to oil consumption, will be gaining momentum. It is anticipated that by 2050, oil demand will be mainly driven by the petrochemical, aviation, and shipping industries. Yet, this won’t be enough to offset lower demand from road transport amid an “astounding rise in electric vehicle sales,” the agency predicts. The report highlights the importance of a gradual shift towards renewable energy sources and a move away from reliance on oil. In late September 2023, the IEA stated that it saw the beginning of the end of the fossil fuel era. The world is witnessing a pivotal moment, and governments will have to adapt to the new reality. The IEA emphasized the key role of renewable energy sources, primarily solar and wind power, in the global transition to clean energy.