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Monday, October 2, 2023

Oil industry needs $12 trillion investment by 2045: OPEC


The global oil industry will account for nearly 29 percent of the world’s energy needs by 2045, requiring nearly $12.1 trillion in investment between now and then. That equates to more than $500 billion a year, according to a senior industry official.

OPEC Secretary-General Haitham Ghaith said recent annual levels had fallen well below that level due to an industry downturn, the pandemic and growing concerns over environmental, social and governance issues.

“In fact, we don’t think enough investment is going into all energy sectors. In short, the sustainability of the global energy system is at stake,” he noted.

“We are catching up with investment. We need a long-term investment environment that is good for both producers and consumers,” he added.

He noted that the world will need more energy in the coming decades as the population and economy grow.

“In our World Oil Outlook 2022, we forecast global energy demand to grow by 23% by 2045. Meeting this growth, ensuring energy security and affordable access, and reducing global emissions in line with the Paris Agreement All energy and unprecedented investment and collaboration are needed,” Al Ghais said, elaborating on the growing demand for energy.

He added that the magnitude of the challenges facing energy, climate and sustainable development meant that the parameters discussed needed to be inclusive.

Al Ghais asserted that there can be no one-size-fits-all solutions for a sustainable energy future, but that collaborative and inclusive action will be “critical to achieving a just and permanent transition”.

“Imagine a world without petroleum, without the vast array of everyday essentials derived from petroleum: gasoline, heating oil, jet fuel, kerosene, toothpaste, deodorant, soap, cameras, computers, car tires, upholstery, contact lenses, prosthetics and heart, multiple drugs and more.

“Basic services that people depend on will disappear, transport will come to a standstill, many homes will be left without heat, people’s health will be affected, global food supply chains will be disrupted, and energy poverty will further increase. It’s a world to think about. “

But, he continued, such an image “underscores the importance of a just and sustainable energy transition in which no one, no industry, no country is left behind. We need every voice at the negotiating table, the G7 The group plays a vital role.”

The OPEC chief stressed that “chronic underinvestment needs to be corrected”. It’s not about waiting for tomorrow; it’s about making it happen today.

He added that OPEC members are ready, willing and able to play a key role in helping provide energy to the world and reduce emissions.

Al Ghais said OPEC was investing in upstream and downstream capacity.

“We are mobilizing cleaner technologies and our vast human pool to help decarbonize the industry. We are making major investments in renewable energy and hydrogen, carbon capture utilization and storage and other technologies, and promoting a circular carbon economy and Improve overall environmental performance,” he said.

He noted that history “shows us that the energy transition is slow and has many paths. We also need to remember the tragic reality that more than 700 million people still do not have access to electricity and 2.4 billion people use inefficient and polluting systems.”

“In the energy market turmoil of the past 18 months or so, we have seen what can happen if we don’t consider the complexities of how energy is intertwined. It’s clear that no one has all the answers. In fact, we may Not all the problems will be known – but that doesn’t mean we can’t act now,” he added.

The OPEC chief noted that the overall focus needs to be on reducing emissions and the use of all fuels globally.

“We fully support a global multilateral approach that puts collaboration first. We need to work with each other, not against each other,” he added.-TradeArabia News Service


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