OPEC WARNS OF $17.4 TRILLION INVESTMENT SHORTFALL THREATENING GLOBAL OIL MARKET STABILITY
GREATRIBUNETVNEWS–THE Organisation of Petroleum Exporting Countries (OPEC) has issued a stark warning that a global oil market deficit of 23 million barrels per day (bpd) is looming by 2030 if upstream investments fall short. To meet future energy demands and avoid this deficit, OPEC estimates that $17.4 trillion in cumulative oil-related investments will be required by 2050.
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Key Highlights:
– Global Energy Demand: Expected to grow by 23% between now and 2050, driven by demographic changes, urbanization, and economic growth.
– Oil’s Dominance: OPEC projects oil will retain the largest share of the energy mix in 2050, at almost 30%, with oil and gas combined accounting for over 50% of global energy needs.
– Investment Needs: Developing countries, many facing energy poverty and limited access to finance, must be allowed to utilize their natural resources to benefit their economies and people.
– *Population Growth:* The global population is expected to rise from 8.2 billion in 2024 to nearly 9.7 billion by 2050, with 1.9 billion people moving to cities and placing greater pressure on energy infrastructure .
Implications:
– Energy Poverty:Approximately 675 million people still lack access to electricity, and 2.3 billion do not have access to clean cooking fuels.
– Investment Call:OPEC emphasizes the need for sustained and large-scale investment across the oil sector to ensure future energy needs are met.
– Partnerships: Collaboration and innovation are crucial in securing a balanced and stable oil market, particularly through the Declaration of Cooperation and the Charter of Cooperation .
OPEC Secretary-General, Haitham Al Ghais, disclosed this at the 24th Nigeria Oil and Gas (NOG) Energy Week Conference and Exhibition held on Tuesday in Abuja.
Al Ghais said that to meet the world’s growing need for energy, investment levels in all energies must increase significantly.
He said OPEC’s World Oil Outlook saw global primary energy demand growing by 23 per cent between now and 2050.
This, he said, would be driven by many factors, including demographics, urbanisation, and economic growth.
“The global population is expected to rise from around 8.2 billion in 2024 to almost 9.7 billion by 2050. This growth will be concentrated almost entirely in the non- Organisation for economic cooperation and development (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 opportunity to mitigate energy poverty for the estimated 675 million people who remain without access to energy, and the 2.3 billion who lack clean cooking fuels.
“These trends alone demonstrate that accelerating global energy progress will clearly require all energies, especially hydrocarbons,” he said.
Al Ghais said OPEC’s World Oil Outlook expected oil to retain the largest share of the energy mix in 2050, at almost 30 per cent, while oil and gas were expected to remain above 50 per cent between 2024 and 2050.
He said crucially, developing countries – many of which still face energy poverty and limited access to finance – must be allowed to utilise their natural resources to benefit their economies and people.
“This is why OPEC will continue to prioritise partnership to secure a balanced and stable oil market, especially through the Declaration of Cooperation and the Charter of Cooperation.
“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.
“Innovation fuels progress, enabling cleaner, more secure, and more affordable energy solutions,” the OPEC Secretary-General said.
The News Agency of Nigeria (NAN) reports that the conference has the theme “Accelerating Global Energy Progress Through Investment, Partnerships and Innovation.””
SOURCE ==NAN==EXCEPT THE HEADLINE AND INTRO
