….says industry needs $12.1trn investment to meet demand
The Organization of Petroleum Exporting Countries (OPEC) has predicted that global energy needs will continue to increase given the expected growth in the world economy and population over the years ahead and estimated that energy demand would increase by 23% in 2045.
The Secretary General of the OPEC, Haitham al Ghais, who gave this forecast during the just concluded G20 meeting of the Energy Ministerial meeting in Goa, India, expressed the oil cartel’s belief on the need for improved investment in energy transitions that focus on an inclusive ‘all-people, all-fuels and all technologies approach.
According to him, OPEC is looking forward to working closely with the G20 to promote a sustainable energy future for the world.
During the meeting, al-Ghais also harped on the need for more investments in oil which he estimated required global investments of $12.1 trillion between now and 2045.
Available data from OPEC indicated that over the next five years there would be a staggering oil market deficit of 16 million barrels per day (mb/d) between global demand and supply, if investments into upstream activities were discontinued.
To avert energy crisis on a global scale, OPEC has always been supportive of increased oil exploration and production (E&P) but with a serious consideration for environmental protection.
To this end, the COP 28 President and UAE Minister of Industry and Advanced Technology, Dr. Sultan Al Jaber, in May this year charged global stakeholders in the hydrocarbon resources industry to work towards reducing emissions, not energy access.
According to him, the world can build a new economic development model by preventing gas emissions and contribute to the current drive towards sustainable economic growth globally.
The OPEC, in its recently published Statistical Bulletin reported that the global crude oil production averaged 72.80 mb/d in 2022, representing an increase of 3.46 mb/d year-on-year or 5.0%.
It clarified that globally, crude oil production rose by 2.53 mb/d year-on-year or by 9.6% in 2022; crude production by non-OPEC countries rose by 0.92 mb/d y-o-y or by 2.1%; and that its member-countries’ share was 39.7%.
Similarly, the report reflected that in the year under review, the world oil demand increased firmly by 2.5 mb/d, year-on-year, with OPEC oil demand taking a considerable share of global gains.
