The UAE energy minister said he was more worried about crude supply than demand due to aging oil fields and insufficient investment in new projects.
Suhail Al Mazrouei, Minister of Energy and Infrastructure, said at the OPEC seminar that the world consumes more than 100 million barrels of crude oil per day and needs to replace about 8 million barrels of production each year, but the current level of investment is not enough. vienna.
“Growth [in crude] The demand has been between 1% and 1.5% per year for the past 10 years … now it is 2%,” said Mr Al Mazrouei.
“We heard stories of peak demand five years ago [and even] 10 years ago. “
The International Energy Agency expects global oil demand growth to slow sharply through 2028, as high oil prices and supply concerns accelerate the shift to clean energy.
In a report last month, the Paris-based agency also said “peak oil demand” could occur by the end of the decade.
Mr Al Mazrouei said OPEC+, which comprises 23 oil producers, “knows better” because it accounts for 40 percent of global production.
At the event, energy companies blamed policymakers and politicians for the current underinvestment in the industry.
International oil majors have reduced spending over the past few years amid mounting pressure from governments and institutional investors.
The chief executive of Emirates Crescent Oil told a panel meeting on Thursday that the policies “do not make sense”.
“It’s like trying to tackle obesity by cutting off loans to farmers and doing nothing to restaurants and supermarkets,” Majid Jafar said.
He added that disruptions in oil and gas supplies have created more frustration in Asia and Africa, while also making it harder to meet basic needs and services.
BP chief executive Bernard Rooney said events over the past few years had shown that energy was the “lifeblood” of society.
Mr Looney said the world must build a cleaner energy system, but this can only be achieved by ensuring energy security and affordability.
“At the same time, we have to invest in today’s energy system, and if we don’t invest we will have a mismatch between demand and supply,” he said.
Oil and gas upstream capex rose 39% last year to $499 billion, the highest level since 2014, according to the International Energy Forum.
However, annual upstream spending needs to rise to $640 billion by 2030 to ensure adequate supply, the IEF said.
“We need energy to drive economic growth, and some idealists tend to forget that economies south of the equator and east of the Suez River are booming,” said Tengku Taufik, chief executive of Petronas.
“We need a non-binary approach to energy security. Without energy security, a successful energy transition is impossible.”
Source: National News