The Organisation of Petroleum Exporting Countries (OPEC) says the global oil sector needs about US$ 12.6-trillion investment to enable it contribute to achieving future global oil demand.
The OPEC Secretary General, Dr Mohammad Barkindo, disclosed this at the Virtual 11th IEA-IEF-OPEC Symposium on Energy Outlooks on Wednesday.
“The global primary energy demand is forecast to continue growing in the medium and long term, rising by a hefty 25 per cent by 2045.
“Oil will remain the largest contributor to the energy mix in 2045 at 28 per cent.
“To meet this future demand, the global oil sector will need cumulative investment of US$ 12.6 trillion in the upstream, midstream and downstream through to 2045.
“These investments are essential for both producers and consumers,” he said.
According to him, underinvestment remains one of the greatest challenges for the industry and has been exacerbated by the COVID-19 pandemic.
He noted that over the course of 2020, investments declined by 30 per cent, adding that there was the need to work towards creating an investment-friendly climate.
“There is a common thread linking the cooperation between our Organizations; the “Declaration of Cooperation (DoC) actions to restore market stability and the producer-consumer dialogue.
“It is something deeply ingrained in OPEC’s raison d’etre.
“In our fast-changing and unpredictable world, we seek to contribute to greater stability, more predictability and enhanced transparency,” the OPEC Scribe said.
He further noted that the organisation constantly seeks to improve its capacity, believing that this would help to build a better future that would serve the interests of generations of producers and consumers.