In an interview with Emirati news agency WAM, OPEC Secretary General Haitham Al Ghais stated that the oil sector will require $11.1 trillion in exploration and production by 2045 to meet rising energy demand and maintain supply stability.
“Allocating more investments in the oil industry will contribute to promoting the sustainability of the global energy sector, securing sufficient and reliable supplies for the world as a whole, and ensuring secure supplies for future generations,” the head of OPEC told the Reuters news agency.
Al Ghais went on to say that investment in oil is important to global energy security.
According to OPEC’s October 2023 World Oil Outlook, investments in the oil sector are expected to reach $14 trillion by 2045, covering upstream, middle, and downstream areas.
The average yearly investment should be over $610 billion, with the majority going to the upstream segment, according to the cartel, despite calls for a freeze on new supply investments.
In November, OPEC and Secretary General Al Ghais condemned the International Energy Agency (IEA) for criticizing the industry and minimizing energy security and affordability. Days before, the IEA stated that the oil and gas industry faces “a moment of truth” in deciding whether to fuel climate change or contribute to its mitigation.
Last month, Al Ghais stated that OPEC continues to support its October long-term oil demand forecast, which increased by 6 million bpd from the previous 2022 estimate.
This month, OPEC’s chief wrote, “If oil disappears tomorrow, millions of jobs will be lost.” Tax revenue would be depleted. Production in the industrial sector would be reduced. Economic growth would reverse. The situation of the fuel poor would worsen.”
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