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DUBAI, 22nd May, 2023 (WAM) – OPEC Secretary-General Haitham Al Ghais highlighted that the UAE has repeatedly demonstrated climate leadership, notably through its “Net Zero Emissions by 2050” strategic initiative and its $40 billion investment to date in the renewable energy sector. Amazing progress has been made in a relatively short period of time.
”His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, declared at the beginning of the year that 2023 would be the “Year of Sustainable Development”. This reflects the country’s longstanding commitment to sustainable practices and international cooperation to meet the challenges of our time,” Haitham Al Ghais said at the opening of the 30th Middle East Oil and Gas Conference (MPGC 2023) on 22 May 2023 -23 in Dubai.The Year of Sustainability will culminate in Dubai’s hosting of COP28, which represents a moment of immense pride for OPEC.
“We have followed with interest the call by Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chair-designate of COP28, for an aggressive, pragmatic and, above all, realistic approach to the climate challenge.” Our organization is supporting Environmental issues and sustainable development have a long history. From the United Nations Intergovernmental Negotiating Committee in 1990 to today, we have been directly involved in the evolution of the United Nations Framework Convention on Climate Change (UNFCCC).
He confirmed that the reality is that oil and gas will continue to be an integral part of the energy mix for the foreseeable future. According to OPEC’s World Oil Outlook, oil is expected to remain the largest share of the energy mix throughout the outlook period, with a share of almost 29% by 2045.
“The global economy is projected to be twice the size of today in 2045. The global population will increase by 1.6 billion between now and 2045. Due to these global demographic and economic changes, energy demand is projected to increase significantly by 23% between now and 2045 .This growth in demand requires adequate investment in our industry. The global oil industry will require a cumulative investment of $12.1 trillion by 2045. Investment is also urgent to cope with the annual growth rate of our industry, which is approximately 5%.
”Despite the urgent need for investment, we have heard some dismal calls to divest from hydrocarbons.
OPEC clearly highlights the very real and dangerous consequences of divestment or underinvestment in the oil industry:
- Underinvestment leads to market volatility.
- Underinvestment endangers energy security.
- Underinvestment jeopardizes economic growth.
- Underinvestment jeopardizes sustainable development.
On the positive side, it is particularly encouraging that many OPEC members are heeding the call to invest in all sectors of the oil value chain, he added. For example, ADNOC is increasing capacity to 5 mb/d by 2030, Saudi Aramco is taking steps to increase capacity to 13 mb/d by 2027, Kuwait to 4 mb/d by 2040 and Iraq to 6 mb/d by 2027 mb/d.
”OPEC members have also invested heavily in the downstream sector. Recent examples include ADNOC’s Crude Flexibility project at the Al Ruwais refinery in the UAE, the Dangote refinery in Nigeria, and the CFP project and Al Zour refinery in my home country of Kuwait.
”I would like to end my statement by highlighting OPEC’s appreciation for the UAE’s leadership in the energy sector, addressing the climate challenge and bringing stakeholders together at COP28. This reflects the country’s constructive role in OPEC and OPEC+, under the able leadership of the UAE, as a consensus builder and facilitator of cooperation.
On behalf of the entire OPEC family, I would like to sincerely thank the UAE for their contribution to making OPEC the successful and vibrant organization it is today.
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