The report says that global energy demand is expected to grow 30 percent by 2040 and that demand for oil is not expected to peak until 2040.
The IEA said oil production will be driven by continued growth in energy-hungry industries. That means that, despite the rapid deployment of wind and solar power worldwide, global Carbon dioxide emissions will continue to rise until 2040, "far from enough to avoid the severe impacts of climate change", the IEA said.
According to the IEA, China overtakes the United States as the largest oil consumer around 2030, and its net imports reach 13 million barrels per day in 2040.
Oil-dependent Venezuela's crude output dipped last month below 2 million barrels per day, its lowest level in almost three decades, global producer group Opec said on Monday. "Meeting this demand would require an overall investment of around $10.5 trillion across upstream, midstream and downstream operations" Opec Secretary-General, Mohammad Barkindo, said noting that the 2017 outlook was more positive than previous year, partly thanks to oil exporting nations' efforts to stabilise the market.
"A remarkable ability to unlock new resources cost-effectively pushes combined United States oil and gas output to a level 50% higher than any other country has ever managed; already a net exporter of gas, the U.S. becomes a net exporter of oil in the late 2020s", the IEA said in its 2017 world energy report.
First, the world's energy demand will rise the equivalent of China and India's current energy consumption over the next three decades - but Canada has limited direct conduits to connect those energy-hungry markets to its store of the world's third-largest oil reserves.
"None of its core scenarios for the future of energy provide a reasonable chance that the world will avoid climate catastrophe", said Adam Scott, senior advisor at Oil Change International.
"Next year's demand growth will struggle to match this", the IEA said.
Traders said they were cautious about betting on further price rises.
The price of oil has risen more than 30% since June to a two-year high of around $57 a barrel in NY trading amid evidence of stronger economic growth around the world.
Echoing the forecast by IEA, the Organisation of the Petroleum Exporting Countries said after long years of punishingly low oil prices, there is "increasing evidence" that the oil market is moving closer to reaching a healthy balance between supply and demand.
Overall global energy needs are seen rising more slowly than in the past, but are still projected to expand by 30 per cent between today and 2040.