The Organisation of Petroleum Exporting Countries (OPEC) has said that investment levels in all energies must increase significantly if the global energy need is to be met.
In his virtual keynote address at the 24th NOG Energy Week Conference and Exhibition Tuesday in Abuja, OPEC Secretary General HE Haitham Al Ghais, emphasized the critical importance of investment saying that accelerating global energy progress will clearly require investments in all energies, especially hydrocarbons.
He said, “For example, global cumulative oil-related investments of $17.4 trillion are required by 2050. Driving home the importance of securing this investment, OPEC research estimates a huge oil market deficit of 23 million barrels per day by 2030 if investment in the global upstream industry stopped today.
“Crucially, developing countries – many of which still face energy poverty and limited access to finance – must be allowed to utilize their natural resources to benefit their economies and people.”
The OPEC scribe noted that with global energy demand expected to grow by 23 per cent in the next two and half decades, building energy infrastructure will help accelerate energy progress in developing economies.
“The global population is expected to rise from around 8.2 billion people in 2024 to almost 9.7 by 2050. This growth will be concentrated almost entirely in the non-OECD region.
“Moreover, almost 1.9 billion people are expected to move to cities by 2050. This is equivalent to adding around 111 cities the size of Lagos or 452 cities the size of Abuja to the global urban landscape.
“While this will challenge energy infrastructure, it also represents an important opportunity to mitigate energy poverty for the estimated 675 million people who remain without access to basic forms of energy, and the 2.3 billion who still lack clean cooking fuels.
“Accelerating global energy progress will also be critical in underpinning global economic growth. Notably, we see the global economy almost doubling in size by 2050, largely driven by non-OECD economies,” he explained.
Al-Gahis insisted that global energy security can only be hinged on partnerships. According to him, that has been the cartels’ watchword since its inception.
“As the African proverb goes, “if you want to go fast, go alone. If you want to go far, go together”. We are stronger together – a fact that has guided OPEC’s work for 65 years.
“This is why OPEC will continue to prioritize partnerships to secure a balanced and stable oil market, including through the Declaration of Cooperation and the Charter of Cooperation.
“Complementing the importance of partnerships in today’s energy landscape, innovation rounds out this year’s NOG theme.
“Technological advances improve performance across the entire oil industry value chain. This is why OPEC Member Countries and national oil companies are driving technological innovation, with thousands of patents granted to the oil industry each year,” he added.