Crude oil will account for 29% of the global energy mix in 2045, but the sector requires nearly $12 trillion in global investments, according to Haitham Al-Ghais, the secretary-general of the Organization of the Petroleum Exporting Countries (OPEC).
In an exclusive interview with the Emirates News Agency (WAM), Al-Ghais cited OPEC’s recently released World Oil Outlook 2045 report, which discovered that the oil market’s volatility and demand-supply imbalance resulted in a significant drop in investment.
To stabilize the market, oil sector investments are needed, he said.
He added that OPEC producers along with Russia, also known as OPEC+, are to a large extent responsible for maintaining this stability.
He said oil investments totaled some $500 million per year but retreated with oil price declines in 2016, leading to a fall in production capacity.
He also stated that further investment declines have been seen following the COVID-19 pandemic, and investment delays have arisen from extreme oil price volatility.
According to Al-Ghais, the UAE’s initiatives for ensuring global energy security highlight its distinct perspective and crucial position as a reliable international source of energy and oil supplies, in line with the main objectives of OPEC.
‘Since joining the organization, the UAE’s role has remained clear,’ Al-Ghais said, listing these roles as increasing production, maintaining economic growth, diversifying through other sources, and lowering costs.
Earlier in October, OPEC+ decided to cut production by 2 million barrels a day from November.
