OPEC chief announces investment needs of global energy market

Oil will make up close to 29% of global energy needs by 2045, with investment of $12.1 trillion needed by then — or over $500 billion a year — but recent annual levels have been far below this, OPEC Secretary General Haitham Al Ghais said, according to Report.

"Investment in oil is critical for energy security. OPEC member countries are ready, willing and able to provide the affordable energy needed to cater towards these future energy needs, all the while reducing their emissions and helping eradicate energy poverty in doing so," he said, adding that looming oil demand growth alone necessitates far more investment if a sustainable supply is to be maintained," he said.

"The consequence of failing to invest adequately in oil is hammered home by recent OPEC Secretariat research outlining that in 65 years there would be a staggering oil market de6cit of 16 million barrels per day between forecasted rising global demand and supply if investments into upstream activities were stopped today — as some are calling for," said the secretary general.

"The oil industry has played a central role in improving billions of lives to date. If it is to continue to do so, and if the world is serious about implementing orderly energy transitions and meeting future energy demand while ensuring energy security for all, chronic under-investment in the industry needs to be remedied swiftly," he noted.

"Ahead of this year’s United Nations Climate Change Conference (COP28) in the United Arab Emirates – where the world will evaluate progress on the Paris Agreement – COP28 President-Designate Dr. Sultan Ahmed Al Jaber said the world needs "maximum energy, minimum emissions."

"A healthy degree of pragmatism will be necessary to achieve this goal, especially given the clear need to utilize all energies if we are to meet the world’s current and future energy demands.

"Ultimately, no people, industry or country can be ignored, and we believe that discussions at this year’s COP28 will reflect this. After all, history is 6lled with numerous examples of turmoil that should serve as ample warning for what occurs when policymakers fail to take on board energy’s interwoven complexities," the OSCE chief said.