$12.1 Trillion Investment Required To Meet Global Oil Demand – OPEC

The Organization of the Petroleum Exporting Countries, OPEC, has said that despite the energy transition, $12.1 trillion of investment is needed to meet the global oil demand.

This came after OPEC raised its forecasts for world oil demand in the medium-and longer-term in an annual outlook released on Monday.

While other forecasters project that oil demand will reach its peak prior to 2030, as a result of the rise of renewable energy and electric cars, OPEC’s opinion in its 2022 World Oil Outlook, is different.

OPEC noted that the focus by investors on economic, social and governance (ESG) issues has impeded investment for a long time. The group therefore, argues that oil should be part of the energy transition.

“The overall investment number for the oil sector is $12.1trillion out to 2045,” OPEC Secretary General Haitham Al Ghais wrote in the foreword to the report, which said the figure was up from last year’s estimate.

“However, chronic under investment into the global oil industry in recent years, due to industry downturns, the COVID-19 pandemic, as well as policies centered on ending financing in fossil fuel projects, is a major cause of concern.”

There have been other predictions, like that of The International Energy Agency, which imply that the demand for all fossil fuels has been set to peak, with oil demand increasing greatly by the middle of the next decade.

It has been projected that in 2023, oil demand will reach 103 million barrels per day, up 2.7 million bpd from 2022.

By 2030, OPEC sees world demand averaging 108.3 million bpd, up from 2021, and lifted its 2045 figure to 109.8 million bpd from 108.2 million bpd in 2021. The group had lowered the 2045 projection over the last few years.

According to a report by OPEC, the group is optimistic about oil prospects. “Oil is expected to remain the number one fuel in the global primary energy mix,” the report said.Source: Oriental News Nigeria

EntekHub.com

All Author Posts